GST: Jaitley announces e-wallet for exporters, relief to SMEs
In a relief to small and medium enterprises, the GST Council has raised the turnover threshold to Rs 1 crore for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities.
New Delhi: Finance Minister Arun Jaitley on Friday said that e-wallet for exporters will be made and notional amount as advance refund will be given. This will be initiated on April 1, 2018, he said.
Addressing the media after 22nd GST Council meeting in Delhi, Jaitley said that the pattern of collection of GST is not clear after two months because it was a period of transition.
In a relief to small and medium enterprises, the GST Council today raised the turnover threshold to Rs 1 crore for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities.
So far over 15 lakh out of the 90 lakh registered businesses have opted for the composition scheme.
“Traders will pay 1 percent, manufacturers 2 percent and restaurants 5 percent under composition scheme,” the FM said.
GST Council also allowed SMEs with turnover of up to Rs 1.5 crore to file quarterly returns instead of monthly filings.
“Tax refunds of July and August for exporters to be processed from October 10,” Jaitley said.
Government has also revoked GST notification on gems and jewellery stating that PAN card will no longer be mandatory on the purchase of jewellery for over Rs 50,000.
The decision was taken at the crucial meeting of the GST Council today.
Offering further respite to Jewellers, the meeting further concluded that any entity dealing in gems, jewellery and other high-value goods that has a turnover of Rs 2 crore or more in a financial year will not be covered under PMLA.
Also, government need not be informed on jewellery purchase of over Rs 50,000, which means that jewellers will not have to report data on buyers to Financial Intelligence Unit.
A separate notification on this will be issued separately after due consideration.