Government has announced major relief in GST for exporters and small and medium enterprises. The composition threshold limit under GST has been enhanced from 75 lakh rupees to one crore.
Under composite scheme, traders will pay one percent, manufacturers two percent and restaurants five percent. GST tax payers upto 1.5 crore rupees turnover can now file their return on quarterly basis, in place of monthly basis.
Exporters will start getting refunds of their input credit for the month of July from 10th of October, and for August from 18th of this month. This is an interim arrangement which will be operated by Central and State Government officials. Exporters will have e-wallet from 1st April, 2018 for getting their refunds.
Items including Khakhra, plain chapati, food packets used in ICDS scheme and unbranded Namkeen will now be taxed at 5 percent instead of 18 percent. GST rate on unbranded medicines have also been reduced to 12 percent to 5 percent. Tax on parts of diesel engine has been reduced from 28 to 18 percent. To contain the cost of irrigation schemes involving high amount of labour, GST rate has been brought down to 5 percent.