Economy

GST Council Meeting Today: SMEs to Get Huge Relief

GST Council Meeting Today: SMEs to Get Huge Relief

The Two Day GST Council Meeting that kicked off yesterday would be considering to remove around 100 items from 28% tax slab. A major change can be seen in return filing for SMEs as well.

SMEs May Now have to file Only GSTR-3B

If this gets approval, these would certainly be a huge relief for Small Scale Businesses that fall under the turnover of Rs 1.5 crores. The GST council will be discussing to do away with GSTR 1, 2 and 3 respectively. Now the SMEs will only have to file one return GSTR-3B stating only the casual summary of the business done of each month. In the last meeting, the council has already exempted SMEs from monthly filing as they will file only quarterly returns. At present, businesses have to file GSTR-3B, GSTR-1 for outward supplies, GSTR-2 for inward supplies and GSTR-3 for finalization of inward and outward supply followed by an annual return.

The GST council may approve this given the glitches faced by dealers while filling these series of returns. Dealers have reported that there are lots of confusion and that is leading to huge mess. The government has already extended deadlines for filling GSTR-2 for the month of July from October 31 to November 30.

Common Buyers to Get Relief Many Items Would be removed from 28% Tax Slab

It’s been reported that around 72% of the items falling in 28% tax slab may be put into 12 or 18% tax slab. Out of 227 items that fall in 28% tax slab, 165 items may be removed and put into the lower tax slabs leaving behind only 62 items. This would give huge benefits to the customers as many reported difficulty in buying products that sounded common and cheap before GST era. Items that may see the trim are chocolate, beauty products, skin care creams, aftershave lotion, marble, granite, non-alcoholic drinks, perfume, paints and many more. This will give immediate benefit to the customers.

Other points that can be discussed is reducing tax slab on AC restaurants from 18 to 12%. The council will also discuss on bringing Real Estate under the ambit of GST which we have already covered earlier.

Digitalization will also get a push from the government and it may offer some incentives for both dealers and customers on various grounds. The PMO has pushed for few of these changes in order to ensure rationality and simplification under GST. If the above proposals are approved, it is likely that the BJP government may benefit in Gujarat elections to be held on December 09 and 14 respectively.

1 Comment

1 Comment

  1. Pingback: GST Council Meet: 50% Compliance Burden Reduced, Tax Cuts and More

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay updated with latest news on finance, taxation reforms, stocks, currencies, trading, global markets and many more.

Are you finding it difficult to manage your personal finance? Know your best opportunities of investments and savings with expert analysis and latest updates.

Copyright © 2016 Finance Minutes

You agree to not make actual stock trades based on comments on the site, nor on any techniques presented nor discussed in this site or any other form of information presentation. Finance Minutes will not be held liable for any losses you in occur while trading. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. All information is for educational and informational use only. You agree to consult with a registered investment advisor, prior to making any trading decision of any kind.

To Top