Jaitley informed that around 72 lakh taxpayers have been transferred to the GST network whereas 25-26 lakh are new taxpayers. Therefore, the GST Council took the decision to increase the threshold for small business to Rs. 1 crore under the composition scheme from the current Rs.75 lakh, he said.
Parrikar, who also holds the finance portfolio, said that he has supported quarterly filing of returns by the dealers under the GST system, while the payment would be on the monthly basis.
Banerjee further commented that deferment of Reverse Charge Mechanism (RCM) is welcome as it encourages registered taxpayers to continue sourcing from small and unregistered taxpayers.
Besides yar, GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 per cent from 12 per cent.
The council also agreed to bring e-Way bill by April 1 to facilitate movement of goods from one check post to another. Thukral said since the small-scale industry does not have infrastructure, it is very hard for them to file three returns every year.
Even three months after implementation of Goods and Services Tax (GST), the refunds of integrated GST (IGST) are yet to be processed for a number of exporters, leaving them battling with working capital issues. "Overall, a vision-less government drunk with arrogance is wasting a golden opportunity of putting India on a growth trajectory", Congress communication department head Randeep Surjewala said.
Liquor baron Vijay Mallya arrested in London under PMLA
Mallya, is already out on bail on an extradition warrant executed by the Metropolitan Police of London earlier this year. This is followed by an extradition hearing following which the final decision is taken by the Secretary of State.
Briefing reporters after a marathon eight-hour meeting, Jaitley said that businesses with turnover of up to Rs 1.5 crore - which constitute 90 per cent of the taxpayer base but pay only 5-6 per cent of the total tax - are now allowed to file quarterly returns as against monthly filings.
The panel chose to give an option to taxpayers to avail the composition scheme if their turnover is less than Rs. 1 crore as against the previous limit of Rs. 75 lakh.
Similarly, Friday's announcement to begin giving GST refunds for July by October 10 and of August by October 18 will address the liquidity concerns of the exporters. "The refund will be offset later against that amount", Jaitley said The e-wallet option will be launched by 1st April, he added. A technology company will be allotted the task to develop e-wallets for exporters.
A group of state ministers, is due to its report in two weeks. Service providers can not opt for the scheme.
This will make it easier for them to claim tax refund while expanding the scope of the Composition Scheme for paying GST. It has now been made a decision to exempt those service providers whose annual aggregate turnover is less than Rs 20 lakh from obtaining registration even if they are making inter-state taxable supplies of services.
"Since the implementation of the GST from July 1 this year, nearly 30 per cent of the registered tax payers-cum- traders in Goa have not paid their taxes", a senior official from the department said.