Lucknow, July 12 (KNN) The Uttar Pradesh Cabinet has amended the UP Goods & Services Tax 2017 through Ordinance 2023 allowing e-commerce companies to use Composition scheme (Samadhan Yojna).

After paying 1% tax, businessmen will be exempted from filing returns but will not get the benefit of Input Tax Credit (ITC).

The Chief Minister Yogi Adityanath led state government has been encouraging MSMEs to join the e-commerce bandwagon but the high incidence of GST tax and also the complexity of regulations were coming in the way.

With this decision businessmen doing business from e-commerce outside the state will also get its benefit. This step will greatly reduce the GST burden and encourage the use of digital platforms to sell their goods anywhere in the country.

Changes in the compounding system in GST have also been approved. Under the new system, traders will get half per cent benefit in tax.

Approval has also been given to set up state tribunals to settle disputes related to GST. Its arrangement is already there in GST but now it will be constituted afresh, which will now be named State Tribunal Bench.  (KNN Bureau)