Govt introduces 4 GST amendment bills to help MSMEs
New Delhi, Aug 8 (KNN) The government of India on Tuesday introduced four bills in Lok Sabha to amend the Goods and Service Tax (GST) laws to make the return forms simpler and raise the threshold for availing composition scheme to Rs 1.5 crore.
Introducing the Bill, Finance Minister Piyush Goyal said the Central GST (Amendment) Bill, the Integrated GST (Amendment) Bill, the GST (Compensation to States) Amendment Bill and the Union Territory GST (Amendment) Bill are primarily aimed to help MSME sector and small traders.
Micro, small, and medium enterprises (MSMEs) that have annual turnaround of up to Rs 50 million will be able to file quarterly returns once the Bills are passed.
Also, those with annual turnover of up to Rs 15 million will be allowed to opt for the composition scheme. Now, the threshold is Rs 10 million. The scheme provides for a flat and concessional GST rate, but does not give input tax credit.
Under the composition scheme, traders and manufacturers pay GST at a flat rate of 1 percent and file returns quarterly.
He said the simplified GST returns forms - Sahaj and Sugam will be introduced to bring about ease of doing business.
The amendments are aimed at addressing the difficulties being faced by the taxpayers, especially MSMEs in filing returns and payment of taxes.
"The proposed new return filing system envisages quarterly filing of return and tax payment for small taxpayers along with minimum paper work," he said.
The amendments will allow employers to claim input tax credit on facilities like food, transport and insurance provided to employees.
It also provides for separate registration of companies having different business verticals, cancellation of registration and issuance of consolidated debit/credit notes covering multiple invoices.
As per the amendments, e-commerce companies will not have to seek registration under GST provided their annual turnover is less than Rs 20 lakh and are not required to collect tax at source under section 52.
The aforementioned bills are likely to be passed in the ongoing session of Parliament.