The GST council instituted by the centre has introduced a slew of changes in GST rules to provide relief to exporters, small and medium enterprises and small enterprises functioning in the textile and other sectors too. These rules will be applicable for November.
The relief measures include reduction of GST rates from 18% to 12% for sewing threads of manmade filaments, reduction from 18% to 12% for all synthetic filament yarn such as nylon, polyester, acrylic etc, reduction from 18% to 12% for all artificial filament yarn such as viscose rayon, cuprammonium, reduction from 18% to 12% for yarn of manmade staple fibers, and reduction from 12% to 5% for real Zari.
In addition to the cut in GST rates, the GST Council has also decided to make the composition scheme available to taxpayers having annual aggregate turnover of Rs 1 crore instead of the current Rs. 75 lakh. The facility will be available to both migrated and new tax payers.
This new law provides cover for all those people who extend deposits to bank and receiving interests and are otherwise eligible for composition. In addition, a Group of Ministers has been constituted to make the composition scheme more attractive.
There is also relief for persons making inter-state taxable supplies in the current set of rules. Persons making inter-state taxable supplies whose annual aggregate is less than Rs. 20 Lakh are exempt from IGST. In the case of J&, the corresponding figure stands at Rs. 10 lakhs. This will help the small providers in a big way.
In addition, the GST Council has decided that small and medium enterprises will be facilitated in paying GST by reducing their requirement to pay only on a quarterly basis for a turnover cap up to Rs. 1.5 crores. Another facility extended to this category is that GST will be payable only when the supply of goods is made. With this the requirement of paying GST on advances received is terminated. The reverse charge mechanism under the GST regime has also been suspended till March 31, 2018.
Goods Transport Agencies (GTAs) can now provide services to unregistered small businesses and such transactions will be exempt from GST. The government has also decided that the registration and operationalization of TDS/TCS will be postponed till March 31, 2018.
Another immediate relief measure provided is that the e-way bill will be rolled out in a staggered manner from January 1, 2018 and will take full effect nationwide from April 1, 2018. GSTR4 date has been extended to November 15, 2017 for those under the composition scheme. Besides, the invoice rules are also being modified for certain classes of registered persons.