BackNarendra Modi: Changes have made GST even simpler
PM Narendra Modi says the decisions from Friday’s GST Council meeting are in line with the govt’s endeavour to ensure interests of people are safeguarded and the Indian economy grows
PremiumNew Delhi: Prime Minister Narendra Modi on Friday said the goods and services tax (GST) has become “even simpler" after the GST Council’s recommendations, and that it is in line with the government’s constant endeavour to safeguard citizens’ interests and ensure the Indian economy grows.
The prime minister congratulated finance minister Arun Jaitley and his team for engaging with various stakeholders for “extensive feedback which led to today’s recommendations" on GST.
Modi’s comments in a series of tweets came after a GST Council meeting made sweeping changes to the tax to give relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and cut tax rates on more than two dozen items.
The changes were made three months after the rollout of the new indirect tax regime.
“Good and Simple Tax becomes even simpler. Today’s recommendations will immensely help small and medium business," the prime minister said in a tweet. Modi has been describing GST as “Good and Simple Tax".
“GST is in line with our constant endeavour to ensure interests of our citizens are safeguarded & India’s economy grows," he added.
According to the prime minister, the composition scheme under the indirect tax has been made more attractive and other facilitation measures will make it even more people-friendly and effective.
According to the changes made in GST, businesses with annual turnover of up to Rs1.5 crore, which constitute 90% of the taxpayer base but pay only 5-6% of total tax, have been allowed to file quarterly GST returns and tax payments, instead of the current provision of monthly filings.
The turnover threshold for businesses to avail of the composition scheme, which allows them to pay 1-5% tax without going through tedious formalities, was raised to Rs1 crore from current Rs75 lakh.
Jaitley, while briefing the media on the GST Council meeting, said a decision has been taken to cut GST rate on 27 items. GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5% from 12%, while the same on man-made yarn used in textile sector has been reduced to 12% from 18%. Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and water pump components has been cut to 18% from 28%.
GST on e-waste has been slashed to 5% from 28%. Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5% tax instead of 12%. Job works like zari (embroidery), imitation jewellery, food items and printing items would attract 5% tax instead of 12%. Government contracts involving high amount of labour will be levied 5% GST instead of 12% in order to contain cost of those programmes, he said.
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