GST Council in its 29th meet today chaired by interim Finance Minister will specifically look to simplify and provide ease to the MSME or Micro, Small and Medium Enterprises sector which even after a year of GST implementation is not able to come to terms with the new indirect tax regime and is facing certain taxation related issues.
The meeting shall work out ways to simplify policy issue in respect of the sector, reduce and streamline compliance as well assist in any technological issue being faced by the industry.
Also, the sector has been asking for incentives as refunds for GST paid in cash, by all companies whose turnover is up to Rs. 2.5 crore. The current demand by the MSME sector is to bring at par the earlier incentive wherein the excise duty was exempt for small-scale industries for turnover up to Rs. 1.5 crore.
Also, there shall be a discussion to come up with a one-time settlement scheme for assessment or arrears for settling the pre-GST disputes or issues pertaining to the previous tax regime i.e. excise, VAT etc. It is believed that if the move is implemented, the sector as a whole will be able to put its resource as well as energy towards business operation as the litigation work will be simplified.
State such as Andhra Pradesh is demanding a cut on GST rate on some of the items that include egg trays, movie tickets, utensils, instant convenience food, breakfast cereals, tractor and spare parts etc.
Furthermore, in line with the government's programme of ease of doing business there has been a demand to increase the limit in respect of e-way bill from the current Rs. 50,000 to Rs. 1,00,000 to reduce the compliance burden for the sector. There is also a demand to come up with an option to revise the return to ease compliance.
Moreover as there are instance wherein small traders conduct business through several firms and are registered in the name of a single person are expecting the new GST system to allow registration of multiple trade names under one PAN.