New Delhi, Oct 7 (KNN) In the aftermath of the complications raised by different stakeholders including the Micro, Small and Medium Enterprises of the country, Goods and Services Tax (GST) Council announced a set of revisions into the new tax regime.

The GST council headed by Union Finance Minister Arun Jaitley in the meeting with all states Finance Ministers introduced these revisions, in an attempt to resolve the issues of the traders and businesses.

With regard to the GST composition scheme, the council has decided to make it available to taxpayers having annual aggregate turnover of up to Rs 1 crore as compared to the current turnover threshold of Rs 75 lakh.

The facility of availing composition under the increased threshold shall be available to both migrated and new taxpayers up to March 31, 2018. Assesses availing the scheme is required to file quarterly returns and not the monthly return.

Finance Minister Arun Jaitley said that with the increased criteria for the composition scheme, it is expected to resolve the concerns of the Micro, Small and Medium Enterprises primarily.

The finance Minister further informed that persons who are otherwise eligible for composition scheme but are providing any exempt service (such as extending deposits to banks for which interest is being received) were being considered ineligible for the said scheme. It has been decided that such persons who are otherwise eligible for availing the composition scheme and are providing any exempt service, shall be eligible for the composition scheme.”

With regard to the  reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 shall be suspended till 31.03.2018 and will be reviewed by a committee of experts. This will benefit small businesses and substantially reduce compliance.

Referring to the requirement to pay GST on advances received is also proving to for small dealers and manufacturers, the GST council has decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods.

The GST on such supplies shall be payable only when the supply of goods is made.

Responding to the concerns of the small exporters regarding the capital blockage due to the GST, The Finance Ministry said that the blocked refund of IGST paid on goods exported outside India in July would begin to be reimbursed from next week.

Also for a permanent solution to the problem, The GST council has decided to introduce e-wallet, which would be credited with a notional amount as if it is an advance refund. This credit would be used to pay IGST, GST etc.

Also with reports of transport agencies not willing to provide services to unregistered persons due to which small unregistered businesses are facing problems, the GST council announced that  the services provided by a transport agency to an unregistered person shall be exempted from GST.

Different MSME bodies and industry associations including FIEO have expressed optimism over the announced set of revisions in the new taxation. (With PIB Inputs) (KNN/DA)