Relief for small traders expected after today's GST Council meet

Restaurants with partial or full air-conditioning or those serving liquor attract a GST rate of 18 per cent. Restaurants with no air-conditioning in any part thereof and not serving liquor fall in the 12 per cent tax bracket. The panel also raised the annual revenue threshold below which businesses won't need to maintain detailed accounts and cut tax rates on a number of goods.

GSTN will have a big challenge ahead to adapt the IT structure according to the frequent changes being done by the GST Council. "Since GST has no exemptions, for now, all exporters will be given an e-wallet". "Moreover, an e-wallet will be created for each exporter by April 1, 2018 to carry forward the process", he added.

Exporters body FIEO's President Ganesh Kumar Gupta said that these initiatives will address the problem of the exporters particularly micro and small segments.

This is an interim decision and the long term solution is not exempting in GST. The next GST council meeting will take place on November 9 and 10 in Guwahati.

Modi built a reputation as an economic reformer capable of delivering jobs and wealth for an increasingly aspirational population, but slowing growth will be near the top of voter concerns in upcoming state elections. He said, the council has formed a Group of state finance ministers to look into different issues. The government has already allowed exporters to furnish Letter of Undertaking (LUT) instead of bonds at the time of exports, which will help in making GST compliance easier and prevent working capital from being locked up.

More news: China must act on Korean crisis — COMMENTARY

Traders and manufacturers opting for the composition scheme have to pay 1 per cent and 2 per cent tax respectively without going through tedious formalities.

Hence, the small and medium tax payers, whose turnover is less than Rs. 1.5 crore, the whole compliance burden has decreased through two ways - that less than one crore will go in composition, which is quarterly and can pay nominal tax. Moreover, tax rate on unbranded namkeen, unbranded ayurvedic medicine, e-waste, paper waste, rubber waste and plastic waste was reduced to 5 percent.

# Recommendation on tax on AC restaurants within 2 weeks.

This comes a day after Prime Minister Narendra Modi in defending the government's track record in handling the economy, said that both demonetisation and GST were structural reforms, but if any sector needs temporary assistance due to this, the government would provide it. "We have directed the GST Council to resolve the bottlenecks in GST implementation".

The business community has been lamenting about the the GST network, which crashed frequently and call centres as well as physical outlets not helping tax filers. Measures to ease the pain points resulting from the shift to the new indirect tax regime are believed to have been discussed as well.

Últimas noticias