Earlier, one day before the crucial GST Council meeting, trader's body Confederation of All India Traders (CAIT), in a letter sent to the Union Finance Minister Arun Jaitley on Wednesday, suggested to levy "three-stage" GST instead of the current multi-stage tax system.
The GST council in its ongoing meeting has decided to provide huge relief to small traders and manufacturers, sources told Zee Media. According to sources, the GST Council has decided now the manufacturers having turnover of Rs 1.5 crore can also avail benefits of composition scheme.
The new rule will be effective from April 1, 2019. It also has been decided that the traders under composition scheme will now need to file returns annually.
Earlier, one day before the crucial GST Council meeting, trader's body Confederation of All India Traders (CAIT), in a letter sent to the Union Finance Minister Arun Jaitley on Wednesday, suggested to levy "three-stage" GST instead of the current multi-stage tax system.
The GST Council is likely to decide on reducing the Goods and Services Tax (GST) on under-construction flats and houses from 12 per cent to 5 per cent, bringing relief to the homebuyers. The Council is also likely to provide relief to small and medium businesses by easing tax compliance limit and extending composition scheme to service sector.
The demand for reduction in the GST on cement from 28 per cent to 18 per cent is also being considered. The Council, headed by Finance Minister Arun Jaitley, is also likely to increase the threshold for GST registration to an annual turnover of up to Rs 50-75 crore. Businesses with a current annual turnover of up to Rs 20 lakh don't pay the indirect tax.
The CAIT said the taxes subsumed in value of the goods will encourage consumers to obtain Bills, which will augment the revenue.
"The efforts of the government to simplify and rationalise the tax structure is appreciable. But at the same time, the dip in the revenue collection is a matter of concern. Therefore, a mechanism is needed for easy collection of taxes by the traders and also more revenue could be generated," it said.
Praveen Khandelwal, CAIT secretary general, in a communication to the Finance Minister, said that the general tendency among consumers is not to pay tax due to higher rate of taxes and thereby avoiding taking bills while purchasing goods, which forces sizeable number of transactions across country to remain informal, causing loss of both direct and indirect tax revenue to the government.
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