GST Council Cuts Rates For 66 Categories And Spares Several Small Enterprises

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In two big concessions the Goods and Service Tax (GST) Council has announced relief for small and medium enterprises in trading and manufacturing and for restaurants, and reduced the previously determined GST rates on 66 categories.


Finance Minister Arun Jaitley, speaking to the media in a briefing after the 16th GST Council meeting this Sunday, said that 133 industry representations were received after the rates were announced in previous council meetings. These were considered by the council at length with the objective to maintain equivalence - that is, to keep the GST rates close to current effective tax rates.

GST Rates Lowered For 66 Categories

After consideration the council has decided to reduce the GST rate applicable to 66 categories including cashew nuts, pickles, ketchup, agarbattis, children’s drawing books, insulin, tractor components and others.

A full list has yet to be shared by the GST Council or government but the minister did share some of the revisions.

More rate revisions have yet to be disclosed by the gST COuncil and government.
More rate revisions have yet to be disclosed by the GST Council and government. 
 

Composition Scheme Relief For Small Enterprises

Jaitley also announced a concession for several small and medium enterprises that will be taxed via the Composition Scheme.

What Is The Composition Scheme?
Tax payers with an aggregate turnover in a financial year upto Rs 20 lakh (Rs 10 lakh in the North East and special category states) are exempt from GST. An entity whose aggregate turnover in the preceding financial year is less than Rs 50 lakh can opt for a simplified ‘composition scheme’ where tax will payable at a concessional rate on the turnover in a state.

So far the GST Council had formulated a Composition Scheme, the upper limit of which was Rs 50 lakh. Enterprises earning a revenue/turnover below that were liable to pay a GST rate on turnover - 1 percent in the case of trading, 2 percent for manfacturing and 5 percent for restaurants.

While the rates have been maintained the GST Council has raised the composition amount (threshold level) to Rs 75 lakh.
 
VISIT: GST Kya Hai ?? – जीएसटी क्या है और इससे भारत में टैक्स के क्षेत्र में कैसे बदलावआएगा  

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