Sub-committee to be formed to address GST related issues of MSMEs: Piyush Goyal
New Delhi, Aug 6 (KNN) Realizing that medium and small businessmen have been facing hardships eversince the implementation of GST, the government has decided to form a sub-committee on easing the compliance for medium and small enterprises.
In a ministerial panel meeting chaired by Piyush Goyal, interim union finance minister said “a sub-committee would be formed to consider easing the compliance burden on medium and small enterprises having turnover of less than 1.5 crore.”
He said that the issues related to returns would be discussed threadbare by the sub-committee of the GST Council.
Further, he assured that the sub-committee would also look at resolving the technical issues faced by medium to small enterprises in complying with the current GST tax system.
Bihar Deputy Chief Minister Sushil Kumar Modi along with finance ministers of Kerala, Delhi and Punjab, would form a committee under the chairmanship of union finance minister of state, Shiv Pratap Shukla, to address the woes of small and medium business owners.
With large number of medium and small enterprises also seeking cash credit of their refunds, the council approved a two per cent reduction to taxpayers availing the digital mode for tax payment.
"The council approved to make adequate software to give a 20 per cent cashback of up to Rs 100 on GST paid by those small and medium businesses paying using Rupay cards or UPI through BHIM mobile app, or any USSID payment systems" Goyal said, addressing a media briefing.
At the GST council meet, Delhi Finance Minister Manish Sisodia proposed a scheme for the MSME with turnover of up to Rs 5 crore per annum, in which a certain proportion of the tax paid by registered dealers in MSME sector is reimbursed to them, by the Centre and the state.
"This scheme would not distort GST tax revenue and would go a long way in creating employment and profitability in small business," Sisodia said addressing after the meeting.
On rate rationalization, the council is likely to take a view after some more consultations, said revenue secretary Hasmukh Adhia after the meeting. If approved, GST tax slabs of 18 and 28 per cent could be merged to have a 14-15 per cent tax slab.
"We have already decided in-principle to abolish the 28 per cent tax rate," Adhia added.
However, the council sought more data on its impact on an already below expectation revenue collection from GST. "No decision was taken about the merging of rate slabs in the meeting," said Adhia.
The Goods and Services Tax (GST) Council met on Saturday to specifically look at the taxation-related issues faced by the country’s micro, small and medium enterprises (MSMEs).
The next GST Council meeting is scheduled to be held in Goa on September 28-29.