A flawed Goods and Services Tax was drastically overhauled on Friday in just three months of its implementation since July 1, to bring it in line with Prime Minister Modi’s goal of “ease of business.” This may, in turn, help the economy claw out of a 3-year long growth slump.
The biggest offer to the small businessmen is the option to pick up the composition scheme that saves them from the riddles of the complicated GST, as it envisages just a flat nominal rate 1% tax to traders, 2% to manufacturers and 5% to restaurants and that too without filing details of the invoices; rather they file just one quarterly (every three months) return with details of total turnover.
The day-long 22nd GST council meeting, chaired by Union Finance Minister Arun Jaitley with the state finance ministers as ministers, on Friday also decided to raise the threshold limit of annual turnover from Rs 75 lakhs to Rs 1 crore to allow eligibility of the composition scheme to cover almost 75% of those registered under the GST.
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