The GST Council would review and change certain rules and rates to alleviate the pains of taxpayers, especially for small businesses.
The GST Council would review and change certain rules and rates to alleviate the pains of taxpayers, especially for small businesses. The council, slated to hold its the 22nd meeting here on Friday, is also likely to announce a mechanism to ensure exporters are refunded in a timely manner so that they are not faced with working capital crunch.
Responding to exporters’ complaints of cash flow crunch, the government on Wednesday allowed such businesses to supply items on the basis of a letter of undertaking (LUT), without furnishing a bond and a bank guarantee.
The GST Council is expected to announce a mechanism whereby exporters can receive refunds sooner on the basis of interum summarised return (GSTR 3B) itself.
“It’s unlikely that exporters’ demand of upfront exemption from GST will be accepted by the Council, but they could be allowed refunds on the basis of GSTR-3B and GSTR-1 as the delay in filing comprehensive returns in not their fault. The revenue threshold of composition scheme could be raised to `1 crore from `75 lakh currently, and a demand to include service providers into the scheme could also be allowed,” Abhishek Jain, Tax Partner, EY India, said on the expectation from the GST Council.
“There are expectations of some big-ticket changes in return-filing and compliance procedures to make it simpler. Taxpayer below a threshold limit could be allowed to file a single consolidated monthly return with monthly payment of taxes while invoice matching could be limited to only big-ticket tax payers. Additionally, composition taxpayers’ provisions could be made more attractive,” Rajat Mohan, partner, AMRG associates, said.
Last week, the finance minister had also hinted at the possibility of fewer slabs under GST once revenue buoyancy is realised. “We have space for improvement, eventually once we become revenue neutral, to think in terms of bigger reforms such as lesser slabs, but for that we have to become revenue neutral,” Jaitley said. He added there was space for improvement in GST to reduce the compliance burden for small taxpayers.
In an interview to Indian Express earlier this week, revenue secretary Hasmukh Adhia said: “Rationalisation has to be done for sure. The finance minister has said that we will wait for revenue trends to emerge but some rationalisation is required and an exercise has been initiated for that. The final decision is to be taken by the GST Council. The Council has done some work on rates already to ease the pain points.