Friday’s GST Council meet is most likely reserved for rolling out relief measures for SMEs and exporters who have been complaining about the new indirect tax regime. The board of state and Union finance ministers, along with other dignitaries, is expected to relieve the exporters of their agony by permitting electronic payment of taxes by means of virtual currency. This step would be taken in addition to the announcement of numerous steps which are aimed at ironing the rough edges of GST implementation.
The major focus is on SMEs and exporters, with a turnover of less than INR 1.5 crore, who will most probably get a relief as the government will allow them to file quarterly returns. This is in addition to an offer which proposes to increase the maximum limit of the composition scheme to INR 1 crore from the existing threshold of INR 75 lakh. The enactment of this step will permit small businesses, including eateries, to pay a tax of 1-5 percent (depending on their business) without the burden of adhering to the three-stage filing process.
On Wednesday, the esteemed Prime Minister Narendra Modi had committed to address all the issues pertaining to GST.
While the new tax regime hasn’t raised a lot of concerns for the consumers, SMEs are complaining profusely because some of them no longer top the list of favoured suppliers of large businesses as the latter assert that they need to be registered with the IT network.
Pertaining to the relief being provided to the exporters, the committee chaired by Revenue Secretary Hasmukh Adhia has suggested that for the month of July, all refunds must be processed by October 10 and for August, it needs to be filed before October 18 depending on the returns for which it is being filed. In the case of input credit, the agenda needs to be fixed as the Council is looking forward to speeding up the entire procedure.