GST Council proposes slew of changes in the GST law to make it business friendly
New Delhi, July 10 (KNN) In a bid to make a year old Goods and Service Tax (GST) more business friendly and effective, the GST Council has proposed slew of amendments in the GST law.
Under the proposed amendments, several genuine transactions which were earlier out of the bracket of input tax credit (ITC) will now be covered.
The proposed changes allows the employers belonging from food and beverages, health services and travel benefits to claim ITC, provided it is mandated by law.
In the same way, outsourced crèche provided to women employees under the maternity benefit act will also earn tax credit.
With the approval of proposed amendments in GST, the GST charged on the premium paid by companies for life insurance covers to security guards and drivers of cash vans will be eligible for ITC.
Besides, the states that provide a drop facility to women employees at night, the GST paid on that can be claimed if the amendments go through.
With regard to proposed amendments, MS Mani, director at consulting firm Deloitte said that once these amendments are approved there would be a considerable degree of comfort for all businesses.
Also, an option is proposed to be given to every person to obtain separate registration for each place of business in a state as presently a single registration is required to be obtained for all the places of business in a state, with an exception made in case they are operating as separate business vertical, according to PwC note, media report quoted.
Further the provisions for individual registration of multiple SEZ units have also been proposed to be introduces, it said.
According to proposed amendments, e-commerce companies with turnover of less than Rs 20 lakh will not have to seek registration under GST and are not required to collect tax at source.
Calling it a taxpayer friendly measure, government said “small e-commerce operators who are not required to collect tax at source under section 52 would now be eligible for availing threshold exemption limit benefit for registration purposes.”