As predicted by various news outlets, the GST council has finally provided relief to businesses of all size and types to alleviate the pain on ground. The key changes are as follows
1. The Turnover for composition scheme has been raised from ?75 Lakhs to ? 1 crores. Group of Ministers committee (GOM) formed to examine
a. whether Exempted goods should be excluded from turnover,
b. whether Interstate transactions allowed to composition dealers and
c. whether credit of tax paid by composition dealer supplier be allowed to his buyer.
2. The E-waybill provisions have been deferred till April 2018.
3. The provisions of Reverse charge on unregistered supplier have been suspended till 31.03.2018.
4. Biz with annual turnover of less than Rs. 1.5 Crores will be required to file returns on quarterly basis for October 2017 onwards. Credit to be provided to buyer on provision basis. Returns for July, Aug and Sept 2017 have to be filed on monthly basis.
5. Council has given in-principle approval for reducing the rates of AC restaurants to 12% from 18% possibly without ITC. GOM to examine the issue.
6. Provision for 'Deemed exports' @ 0.1% has been approved for merchant exporters.
7. Exporters (advance authorisation, 100% EOU, Star House) would not be required to be paid GST on import of goods for exports.
8. E-wallet system to be introduced from exporters from 1st April 2018.
9. Refunds for exporters for July 2017 and August 2017 input credits from Oct 10, 2017 on manual basis.
10. Service providers providing inter-state services and having turnover less than 20 lakh have been exempted from registration.
11. TDS and TCS provisions deferred till April 1, 2018
12. Rates reduced for various items and services. List includes Gas Stove, man made yarn, clips, pins, sliced diced mangoes, khakhra, unbranded namkeen, unbranded ayurvedic medicines, plastic, rubber or paper waste, flooring stones (other than marble and granite), stationery items, parts of pumps. For services, rates reduced for job work on zari, imitation jewellery, printing, high labour works contract services for govt contracts.
13. Relief provided for old car leases through abatement of 35% in value.
14. No tax to be paid on advances by goods supplier having turnover upto Rs. 1.5 crores