Finally, PM Narendra Modi led Central government has given a big gift to exporters.
It’s a huge relief for exporters. Finally, PM Narendra Modi led Central government has given a big gift to exporters. Union Finance Minister on Friday announced that exporters, who have been facing sluggish growth due to the global slowdown, will get refunds for the tax paid by them on exports during July and August by October 18, according to a report in news agency PTI. Moreover, Arun Jaitley announced, “For the remainder of the fiscal, they will operate under an exempted category paying a nominal 0.1 per cent GST.” Also, Jaitley added, “From April 1 attempt would be made to launch an e-wallet facility for the exporters to provide liquidity.
The big decision by Narendra Modi government came after three months since the rollout of GST.
The GST Council on Friday made sweeping changes to give relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and cut tax rates on more than two dozen items.
“Compliance burden of medium and small taxpayers in GST is being reduced,” Finance Minister Arun Jaitley told reporters after the 22nd meeting of GST Council on Friday.
Businesses with annual 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 total tax, have been allowed to file quarterly income returns and pay tax instead of the current provision of monthly filings.
Also, the turnover threshold for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities, was raised to Rs 1 crore from current Rs 75 lakh.