Lower rate from 2 per cent to 1 per cent for composite scheme a relief for MSMEs: CICU

New Delhi, Jan 4 (KNN) With the government considering the reduction in the Goods and Services tax (GST) rate from 2 per cent to 1 per cent under the composite scheme, it certainly is a relief for the Micro, Small and Medium Enterprises (MSMEs), Chamber of Industrial and Commercial Undertaking informed.

Commenting over the latest move, Upkar Singh Ahuja, President of the Chamber said that earlier the industry had to pay 1 per cent for the CGST and another 1 per cent for the State, reducing it to a cumulative 1 per cent is a welcoming move for the industry.

With the reduction in place, the small scale manufacturers that were earlier facing stress will now be at ease, Ahuja added.

So far, the government data reveals that over 15 lakh businesses have opted for composition scheme, which allows them to pay taxes at a concessional rate and makes compliance easy under the Goods and Services Tax (GST)

While a regular taxpayer has to pay taxes on a monthly basis, a composition supplier is required to file only one return and pay taxes on a quarterly basis. (KNN/ DA)