India Inc today welcomed GST Council's decision to lower tax rates for various companies and simplify corporate tax filing The move will improve compliance and benefit consumers.
In his first GST Council meeting since he took office as Minister of Finance in May this year, Piyush Goyal allowed companies with a turnover of up to Rs 5 billion to submit quarterly statements ̵
So far, companies with a turnover of up to 1.5 billion rupees were allowed to submit quarterly tax returns.
In a statement, the Confederation of All Indian Traders (CAIT) said the unilateral quarterly returns form for traders with sales of up to Rs 5 billion is a bold move that will ease traders' misery.
"Remarkable choices are the simplification of revenues and, in particular, the preservation of small taxpayer interests, which would make it easier for both small and large taxpayers to do business," said Ficci President Rashesh Shah.
He further said that the decisions improve compliance, broaden the tax base and move in the right direction
In yesterday's meeting, the GST Council also lowered the rates for 88 articles, including shoes, refrigerator, washing machine and 35mm televisions, while the widely required sanitary napkins were exempted.
"GST release on sanitary napkins is welcome as it is a major step towards empowering women as sanitary napkins are needed for feminine hygiene, which is a big step forward in promoting menstrual hygiene among young girls and women Scrapping sanitary napkins makes napkins more affordable and more women are able to use them, "said Pinky Reddy, president of the Ficci Ladies Organization (FLO).
Harpreet Singh, Partner – Indirect Tax, KPMG in India, said rate rationalization on so many products is nothing more than annual budget announcements.
"Rate rationalization would certainly encourage industry and consumers" It would be interesting to see how the government would try to offset the loss of income due to tax rate cuts, "said Singh.
He said tariff cuts on craft items such as deities of stone, marble, and wood, Phool Jharoo, Rakhis, etc. was a long-drawn demand from the sector.
"Imposing the rate of 5/12 percent, in addition to the concerns of the sector, which is already dwindling. The exemption from the GST could give much needed impetus to industry, which makes a significant contribution to employment in rural areas. "
A quarterly return for taxpayers with revenues of up to Rs 5 billion, representing 93 percent of taxpayers, reduces the compliance burden on small traders and helps them make better use of their energy, rather than worrying about monthly tax filing
Usha International's Dysh Chhabra, a household appliance manufacturer, estimates the reduction of GST rates from 28 percent to 18 percent on food grinders, mixers, hot water storage, water coolers, water heaters, electric ironing machines, etc.
"These are basic units needed daily in every household. This pre-festive season will certainly encourage consumers and spur growth in the category of home appliances, "said Chhabra.
Abhishek Jain, partner of Ernst & Young Services India, said the 28th Meeting of the GST Council has taken place positively with some very significant rate rationalizations.
"Great relief for hotels as a GST rate of 28 percent would not apply if the actual customs value is less than 7,500, although the published duty is more than 7,500 can be; This will also make IT systems easier for hotel players.
"Reducing the GST rate of ethanol for oil companies to 5 percent is welcome, as important mineral oil products are outside GST and this would lower their costs," Jain said.