New Delhi.There is news of relief for small businessmen and GST taxpayers. Many important decisions related to tax have been taken in the 57th meeting of the GST Council. The biggest relief has been given in cases related to fines and small tax demands.
After the meeting, Finance Minister Nirmala Sitharaman said that the general GST penalty has been reduced from Rs 25 thousand to Rs 10 thousand. Apart from this, it has been decided not to issue show cause notice on demands of less than Rs 10,000. With this, small businessmen are expected to get relief from major action on small tax related defaults.
Refund process will also be faster
The council has also laid emphasis on simplifying the refund system. According to the proposal, a target has been set to approve the refund application within 10 days. At the same time, after receiving the acknowledgement, arrangements will be made to issue the refund within about 3 days.
Limit of case increased
The limit for prosecution in GST cases has been increased from Rs 1 crore to Rs 5 crore. Apart from this, a decision has also been taken to abolish the Power of Arrest of officers under GST law.
ITC to Pharma and FMCG
Pharma and FMCG sectors are said to get the benefit of Input Tax Credit (ITC) from November 1. This can provide relief at the level of tax credit to companies doing business in these sectors.
No change in GST rates at present
At present, no change has been made in the GST rates in the council meeting. The rates will be reviewed once a year and the date for implementation of any changes will be April 1. The objective of these decisions is to simplify the GST regime and provide relief to small businessmen from unnecessary hassles in case of minor tax errors or small amounts.