The important things one should know about GST changes
GST changes for businesses with turnover less than 1.5 crores can file return now quarterly
GST Council has agreed to allow SMEs with turnover of up to Rs 1.5 crore to file quarterly returns instead of monthly filings. As per Revenue Secretary Mr. Hasmukh Adhia , about 90 per cent of the taxpayers will be benefited by this change. One of the major compliance issues of the new tax system has been the cumbersome return filing process which requires traders to file three returns in a month. Due to this GST changes they have definitely benefited.
GST changes Composition scheme increased from 75lakh to 1Cr
The threshold for composition scheme in GST has been hiked from Rs 75 lakh to Rs 1 crore for businesses to avail of the composition scheme. Under the composition scheme, a taxpayer is required to file summarized returns on a quarterly basis, instead of three monthly returns. Due to this GST changes the small businesspersons which come in between 75 lakhs to 1 crores turnover get benefited.
Jaitley said traders, manufacturers and restaurants will pay 1 per cent, 2 per cent and 5 per cent respectively under composition scheme. Service providers cannot opt for the scheme
GST changes in the context of Exporter
As per Finance Minister Sh. Arun jaitley the taxes on Export goods will diminish its competitiveness in the global market. So the taxes on Export goods will taken account in different ways. As per GST council, one committee has been recommended a long term solution- “E-wallet”. This wallet shall have a notional amount which will be given as an advance refund. He also said this e-wallet will be creating by 1st April 2018 for each exporter. So the govt has given IGST relief for 6 months. Till that Nominal GST will be applicable of 0.1% GST.
He also added that Petrol, Gems and Jewelry rates are undecided and later a separate council will be called for it.
Important goods on which GST changes takes an impact
Folowings are the categories on which the GST changes takes it impact.
a-Dried Sliced mango, Khakra and Chapati and namkeens other than Brand and not put up in Unit container, has been revised from 12% to 5%.
b-Also Processed packed food for free distribution under social welfare program approved by central or state govt has been revised from18% to 5%
Ayurvedic, Unani, Siddha, Hpomeopathy medicines other than brand- 12% to 5%
Stationary and colors:
Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal Poster color and Modeling Paste for children amusement- 28% to 18%
Waste and scraps:
a- plastic/ rubber waste, parings or scrap – 18% to 5%,
b-Paper waste or scrap-12% to 5%
c-Hard rubber waste or scrap- 28% to 5%,
d- E- waste- 28%/18% to 5%
e- Cullet or other waste or scrap of Glass 18% to 5%
a-Manmade filaments for sewing thread not for retail sale- 18% to 12%
b- Synthetic yarn such as nylon, polyster, acrylic 18% to 12%
c- Artificial Yarn Viscose rayon, cuprammonium 18% to 12%
d- Sewing thread of manmade staple fibres- 18% to 12%
e- Yarn of Manmade staple fibres- 18% to 12%
f- Real zari (Silver or Gold Yarn made from Silver or Gold alloy) – 12% to 5%
Diesel engines parts:
Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps, Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP and Plain Shaft Bearing 8483- 28% to 18%.
All goods falling under heading 6802
Goods which are falling under heading 6802[other than those of marble and granite or those which attract 12 percent GST] such as worked Monumental Or Building Stone (Except Slate) And Articles Thereof, Other Than Goods Of Heading 6801; Mosaic Cubes And The Like, Of Natural Stone (Including Slate), Whether Or Not On A Backing; Artificially Colored Granules, Chippings And Powder, Of- 28% to 18%.
Stay connected at blog sections of www.compare2loan.com for More blogs