CITI Supports GST Council In Reducing Tax Compliance For Manufacturing & Service Sector
CITI has also allowed big and small companies to file their GST returns by March 2018, which would further minimize the compliance burden on tax payers
The Confederation of Indian Textile Industry (CITI) is in support of the Finance Minister, Arun Jaitley and GST council for introducing reforms in the Goods and Services Tax (GST) law for promoting ease in small businesses who had been facing e-filing issues post GST regime.
The Chairman of CITI, Sanjay Jain, said that increasing the threshold limit on composition scheme from Rs 1 crore to Rs 1.5 crore is a welcome move and it will enable the government to bring in more units within the scope of a special tax payment window for Small and Medium Enterprises (SMEs). “The decision of uniform tax rate of 1 per cent for both traders and manufacturers is a welcome step and suppliers under the scheme are allowed exemption on services up to Rs 5 lakh per annum for eligibility,” he added.
Based on new reforms, all companies have to submit their GSTR 3B of every month by 20th of the next month. However, under GSTR-1 two categories have been formed: Those companies having turnover up to Rs 1.5 crore are required to file return once in every three months. On the other hand, companies having turnover above Rs 1.5 crore, will have to file GSTR-1 on monthly basis.
CITI further stated that there are several other 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. Companies which have already submitted late fee will get reimbursement. Whereas, those which had to file NIL return from October 2017 onwards, will be charged with Rs 20 per day as penalty instead of Rs 200 per day, as decided earlier.
Jain 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 will 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 the manufacturing sector, improve employment opportunities in labor intensive units, and share of textiles and other products in the world market,” he added.
CITI has also allowed big and small companies to file their GST returns by March 2018, which would further minimize the compliance burden on tax payers.
The Confederation of Indian Textile Industry expects the GST council's chief to soon address the unresolved issues of the textile industry like reducing GST rate on MMF from 18 per cent to 12 per cent and by refunding accumulated ITC at fabric stage. Also, to reduce GST rate on 100% cotton dot coated interlining fabric from 12 per cent to 5 per cent (which at present attracts 12 per cent GST rate).
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