The Confederation of Indian Industry (CII) has welcomed the landmark decisions taken by the GST Council at its 28th meeting held on July 21, 2018, stating that these were in line with industry submissions. Raising the limit for the composition scheme from ₹1 crore to ₹1.5 crore, permitting composition dealers to supply services (other than restaurants) for up to a value not exceeding 10% of turnover in preceding financial year or up to ₹5 lakh and other decisions shall particularly benefit the SME sector, said CII.
CII welcomed the approval of a simpler return filing process that will benefit 93% traders and small businesses. With GST rates on more than 100 mass-use items reduced and 17 consumer/white goods moved from 28% to 18%, the needs of a growing class of consumers have been addressed by the Council.
Reduction of GST rates from 28% to 12% on fuel cell vehicles along with the exemption for compensation cess shall add to a clean environment and promote manufacturing of clean energy vehicles, added CII.
Ethanol for oil companies has also been put in the under 5% category. The expansion of footwear price applicability to ₹1,000 is aimed at strengthening the leather industry and incentivising employment, according to CII. With regard to the hotel industry, tax will now be applicable on the actual bill of hotels instead of declared tariff. This shall be a great relief to the hotel industry and boost tourism.
The provision of exemption from GST for mercantile trade where supply of goods is from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India and other decisions will assist exporters. Exporters to select countries where export proceeds are received in Indian currency shall benefit, as their supply of services shall qualify as exports even if payment is received in Indian Rupees. The attention to reducing rates and simplification of filing of returns as well as widening of input tax credit shall increase the compliance rate and add to revenue buoyancy
