GST Council hiked the turnover threshold to Rs 1 crore for businesses to avail the composition scheme that allows them to pay 1-5 percent tax without having to go through tiresome formalities.
“Compliance burden of medium and small taxpayers in GST has been cut and the eligibility of Composition Scheme has been raised to Rs 1 crore,” said Union Finance Minister Arun Jaitley while briefing media following the conclusion of the 22nd meeting of the GST Council.
The new indirect tax regime had put an extra pressure on small business owners and traders. The council decided to provide taxpayers with the option of availing the so-called Composition Scheme given their turnover stands at less than Rs 1 crore. The previous limit was Rs 75 lakh.
The Finance Minister also stated that the tax refunds of July and August for exporters will be processed from October 10, adding that e-wallet for exporters will start from April 1, 2018.
Jaitley further said businesses with a turnover of up to Rs 1.5 crore have been allowed to file quarterly returns as against monthly filings.
More details awaited