Sanjay K Jain, Chairman, CITI has applauded the Finance Minister and GST Council for bringing in number of reforms in GST law for promoting ease of doing business especially among small businesses who have been facing a number of compliance issues in e-filing post GST regime.
Chairman, CITI further stated that increasing the threshold limit on Composition Scheme from Rs1 crore to Rs1.5 crore is a welcome move and it will help the government bring in more units within the scope of a special tax payment window for Small and Medium Enterprises (SMEs). He further stated that the decision of uniform tax rate of 1 per cent for both traders and manufacturers is a welcome step. He further stated that suppliers under the scheme are allowed exemption on services up to Rs 5 lakh per annum for eligibility.
Jain also welcomed the decision of GST Council by allowing big and small companies to file their GST return by March 2018 thus, minimising the compliance burden on tax payers. According to new changes, all companies have to submit their GSTR 3B of every month by 20th of next month. However, under GSTR-1 two categories have been formed. Those companies having turnover up to Rs1.5 crore are required to file return once in every three month. Whereas, companies having turnover above Rs1.5 crore, they will file GSTR1 form on monthly basis.
Chairman, CITI further stated that there are many companies who have not been able to file their GSTR 3B for the month of July, August and September 2017. In such cases, government has exempted such companies from submitting late fee and those who have already submitted late fee will get reimbursement. In the cases where companies had to file NIL return from October 2017 onwards, government will only charge Rs 20 per day as penalty instead of Rs 200 per day, as decided earlier.
Jain also felt that giving tax relief on more than 200 items – across all sectors – under various tax slabs is a commendable move and will boost not only the manufacturing sector but also give immense relief to the end users of the products. The decision will create positive vibes in the economy and help fresh flow of FDIs in manufacturing sectors, improve employment opportunities in labour intensive units, and share of textiles and other products in the world market.
The CITI Chairman has also pinned his hopes on GST Council Chief’s statement that he will soon address the unresolved issues of the textile industry by reducing GST rate on MMF from 18 per cent to 12 per cent and by refunding accumulated ITC at fabric stage. He also hoped that GST Council will also reduce GST rate on 100 per cent Cotton Dot Coated Interlining Fabric (and similar other low value added fabric) from 12 per cent to 5 per cent which at present attracts 12 per cent GST rate merely because it is dot coated with 25-30 GSM of HDPE or LDPE powder, adding about Rs.6.00/meter (Incl. Profit). Without dot coated the same fabric attracts only 5 per cent GST rate.