GST: 10 Major Changes To Help Small And Medium Businesses

News World India | 0
| October 7 , 2017 , 11:13 IST

Months after the Goods and Services Tax (GST) was first rolled out, the council on Friday made major changes into the new tax regime to ease the transaction for the small and medium business owners.

Here are 10 points on the major changes in the tax regime:

1. The jewellery businesses have been excluded from the money laundering or PMLA act. According to the new changes, the buyers don't have to produce their PAN cards on the purchase of up to Rs 2 lakh worth of jewellery. Earlier this cap was on Rs 50,000.

2. Under the new GST, companies with an annual turnover of up to 1.5 crore can file their GST return every three months. The cap on composition scheme has also been extended from Rs 75 lakh to Rs 1 crore now.

3. The exporters have been relieved for the next six months, they will be have to use the e-wallets after this time period. The E-wallet system will be in action from April 1, 2018.

4. The restaurants with a turnover of Rs 1 crore, which were in the tax slab of 18 percent GST have been shifted to a lower slab. Now these owners will have to only pay a 5 percent tax.

5. The tax will be refunded to the exporters on October 10th. There is a 0.1 percent tax on export.

ALSO READ: No PAN Card Required For Purchasing Jewellery Over Rs 50,000: GST Council

6. Fruits like Mango and Ayurvedic medicine, earlier in the tax slab of 12 percent GST have now been shifted into 5 percent tax bracket. Several stationeries have also been shifted from 28 percent to 18 percent bracket.

7. The GST on plain food items have been decreased from 12 to 5 percent and ICDS kids food has also seen a drastic tax fall from 18 to 5 percent.

8. The GST on unbranded namkeen has also been changed to 5 percent. Unbranded Ayurvedic medicines will also be sold in the same tax bracket.

9. While spare parts of the Diesel engine will now have to bury an 18 percent GST, the same on carpet has been reduced to a mere 5 percent.

10. However, the greatest relief of all is that now the Goods and Services Tax can be filed in a single form. On the other hand, Reverse Charge mechanism will also be suspended by March 2018.