Prime Minister Narendra Modi said that the Good and Service Tax (GST) has become simpler after the council's recommendations and that it was well in line with the government's constant endeavour to safeguard citizens' interests and ensure the growth of India's economy.
Under the Value-Added Tax system, there was a provision of filing returns for three months, but under GST, all taxpayers small and big had to file monthly returns. The third aspect the GoM will analyse is whether the rate of tax on restaurants needs to be reduced or should they not be allowed input tax credits.
CAIT national president BC Bhartia and secretary general Praveen Khandelwal hoped that the GST Council will seriously deliberate on the issues raised by the traders considering the situation of chaos and confusion prevailing among the trading community.
Meanwhile, Bihar Deputy Chief Minister Sushil Modi has appealed to the council to consider removing some of the difficulties being faced by the small tax payer. Changes to this effect would ensure that exporters get their working capital locked up in refunds released quickly.
For businesses with a turnover up to Rs 1.5 crore, the council permitted filing of quarterly returns as against the monthly filings mandatory earlier. It has now been chose to exempt those service providers whose annual aggregate turnover is less than Rs 20 lakh from obtaining registration even if they are making inter-state taxable supplies of services. "Today's recommendations will immensely help small and medium business".
India slashed tax rates on 27 items and extended the period for small businesses to file returns in a bid to reverse the economic sentiment dampened by a chaotic roll out of the new nationwide sales tax.
"The collection pattern observed so far shows that a substantial portion of the tax is coming from the big players", Mr Jaitley said.
Friday's review comes amid criticism over the way GST is being implemented.
The Finance Minister also stated that the tax refunds of July and August for exporters will be processed from October 10.
"There may be one or two problems which will never get resolved, but most of the issues, I am very sure will get resolved".