The decision would especially help small businesses who have been facing a number of compliance issues in e-filing post GST regime, Jain said in a press statement.
CITI chairman stated that increasing the threshold limit on Composition Scheme from Rs 1 crore to Rs 1.5 crore is a welcome move and it will help the government bring in more units within the scope of a special tax payment window for Small and Medium Enterprises (SMEs). He also welcomed the decision of uniform tax rate of 1 per cent for both traders and manufacturers.
Jain also welcomed the decision of the GST Council to allow big and small companies to file their GST return by March 2018 thus, minimising the compliance burden on tax payers. According to new changes, all companies have to submit their GSTR 3B of every month by 20th of next month. However, under GSTR-1 two categories have been formed. Those companies having turnover up to Rs 1.5 crore are required to file return once in every three months. Whereas, companies having turnover above Rs 1.5 crore, will have to file GSTR-1 on a monthly basis.
For companies which have not been able to file their GSTR 3B for the month of July, August and September 2017, the government has exempted such companies from submitting late fee and the companies that have already submitted late fee will get reimbursement. In the cases where companies had to file NIL return from October 2017 onwards, government will only charge Rs 20 per day as penalty instead of Rs 200 per day, as decided earlier.
“Giving tax relief on more than 200 items – across all sectors – under various tax slabs is a commendable move and will boost not only the manufacturing sector but also give immense relief to the end users of the products. This decision will create positive vibes in the economy and help fresh flow of FDIs in manufacturing sectors, improve employment opportunities in labour intensive units, and share of textiles and other products in the world market,” said Jain.
He hoped that the GST Council will soon address the unresolved issues of the textile industry by reducing GST rate on man-made fibre (MMF) from 18 per cent to 12 per cent and by refunding accumulated input tax credit (ITC) at fabric stage. He also hoped that the Council will also reduce GST rate on 100% Cotton Dot Coated Interlining Fabric (and similar other low value-added fabric) from 12 per cent to 5 per cent which at present attracts 12 per cent GST rate merely because it is dot coated with 25-30 GSM of HDPE or LDPE powder, adding about Rs 6.00/metre (Incl. profit). Without dot coated the same fabric attracts only 5 per cent GST rate. (RKS)
Click here to read GST Council’s decision to further simplify return filing process
Click here to read about GST rates cut and changes in Composition Scheme
Fibre2Fashion News Desk – India
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