SME Times is powered by   
Search News
Just in:   • India to get $10 bn at 'World Food India 2017': Minister  • NAFTA talks continuing to put pressure on Mexican peso: Meade  • North-East India emerging as new startup destination: Minister  • Dollar changes hands in early trade in Tokyo  • Majority of working professionals welcome cracker ban in Delhi-NCR: Survey 
Last updated: 12 Jun, 2017  

amit-mitra-ficciTHMB 'Increased threshold of GST's Composition scheme to benefit SMEs'

gst-sme-parliament.jpg
   Top Stories
» North-East India emerging as new startup destination: Minister
» Wholesale price inflation eases in Sep to 2.6 pc
» 'Govt never talk about announcing fiscal stimulus package'
» 'Centre working on mechanism to speed up GST refund for exporters'
» 'Positive exports growth in 26 out of 30 major product groups in Sep'
SME Times News Bureau | 12 Jun, 2017
Industry and other stakeholders on Sunday hailed the Goods and Services Tax (GST) Council's move of bringing traders, manufacturers and restaurants below Rs 75 lakh turnover under the Composition Scheme, saying that it will boost small and medium enterprises (SMEs) in the country.

"This is a big decision in favour of traders. Its a people-centric decision, will benefit the common people. The biggest win is for SMEs today. Biggest development for small and medium enterprises (SMEs) and small businesses that contribute on a large scale to the GDP and job sector of the country," West Bengal Finance Minister Amit Mitra told reporters in New delhi after the 16th GST Council meeting in New Delhi.

"The purpose of GST is to protect SMEs, protect states' revenues and benefit people. By stimulating SMEs, which are labour intensive, taxes will go up, impact on GDP will go up and if implemented in appropriate manner, it can lead to greater revenues," he said.

The Council on Sunday allowed traders, manufacturers and restaurants with turnover of up to Rs 75 lakh to avail of the composition scheme, against Rs 50 lakh earlier.

Traders who have below Rs 75 lakh turnover will have to pay 1 per cent tax, manufacturers will have to pay 2 per cent while restaurant businesses will have to pay 5 per cent if they opt to go for the Composition Scheme under GST.

However, under it, no input tax credit will be made available.

Pratik Jain, Partner and Leader Indirect Tax, PwC said: "Increasing the composition scheme limit to Rs 75 lakh from Rs 50 lakh will provide relief to many more small businesses, though service providers (except restaurants) continue to remain outside the ambit of composition levy."

The Council on Sunday also reduced the tax rate for 66 items under GST.

"It's really encouraging that government, in a short span of time, managed to consider all the industry representations on rates and reduced/realigned the rates on almost 50 per cent of the items covered under those," Jain said.

Overall, the decisions in the Council meeting are all positive and demonstrates a constructive dialogue between the government, which should be a key feature of any such reform, he said.

Mahesh Jaising, Partner, Indirect Tax, BMR and Associates LLP said: "The GST Council has decided to increase the threshold of the composition scheme. This should mean that a significant number of SME sector players should benefit from not having to meet with detailed compliances under GST and also having a less financial burden, on account of GST."

"In terms of rates, the GST Council has reduced the rates for 66 items. The approach seems to have been to address cases where there was an error in the fitment exercise and also to reduce the rate of key products used by the common man. Importantly, the decision demonstrates the welcome approach of the GST Council in hearing industry's issues and addressing concerns, in several cases," Jaising said.

Vishal Raheja, DGM, Taxmann R&D said: "One major decision taken was raising the threshold limit for Composition Scheme to Rs 75 lakh from Rs 50 lakh."
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
65.95
64.30
UK Pound
87.75
84.85
Euro
77.85
75.20
Japanese Yen 58.75 56.80
As on 17 Oct, 2017
  Daily Poll
Small traders even below the threshold limit too should register under GST system?
 Yes
 No
 Can't Say
  Commented Stories
» Starting an import export business: Basic guide for beginners(21)
» GST revamp: Relief to exporters, SMEs(14)
» 'GST relaxations advanced Diwali celebrations'(1)
» Collateral free loans available for MSMEs: Minister(1)
» 'Students should apply for interest subsidy on education loans'(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter