- The ministerial panel underneath Bihar Deputy Chief Minister Sushil Modi approved levy of 1 per cent ‘calamity cess’ by Kerala for a period of two years to fund rehabilitation work within the state hit by floods.
- Goods and services, which is able to entice 1 % cess, will be decided by Kerala.
- If any other state needs to arrange a disaster cess, then it must contact the GST Council for approval. Aside from this, the Group of Ministers also recommended permitting GST Council to borrow greater than the restrict permitted by pure catastrophe states.
- Kerala had asked the GST Council to arrange a cess for rehabilitation work. GoM has recommended to the council that Kerala must be allowed to put in 1 % cess for 2 years. Aside from this, the Middle and the State will resolve on growing the credit score restrict underneath FRBM for funding pure catastrophe.
- The GST law provides for special tax for a specified period to raise additional sources throughout any natural disaster or disaster.
- In order to provide aid to the MSME under the Items and Services Tax, one other ministerial panel, underneath the chairmanship of Finance Minister Shiv Pratap Shukla, discussed the exemption limits for such companies.
- At current, companies with turnover upto Rs 20 lakhs are exempted from Items and Providers Tax (GST).
- GOM was unanimous that the restrict of exemption for MSME, which is the provider of products, must be elevated, however there was no unanimity between the states. Due to this fact, the GST Council was deserted to resolve it.
- Whereas Delhi recommended that the border must be prolonged to turnover upto Rs 40 lakh, Bihar recommended it to be Rs 50 lakh. One other suggestion was that the GST of Rs 5,000 with turnover between Rs 50 and 60 lakh for MSMEs can be imposed, and for these between Rs 60 lakh and Rs 5 lakh, it must be between Rs 10,000-150 wanted.
- ‘Below the earlier excise regime, companies with turnover of as much as Rs 1.5 crore had been exempted. Due to this fact, it was felt that there was a necessity to supply aid to MSME underneath GST. The GST Council will focus on the suggestions of the 2 ministers of their assembly on January 10.
- GoM, led by Shukla, has allowed the Council to benefit from the turnover of a composite scheme of as much as Rs 1.5 crore, which is greater than the present Rs 1 crore.
- It also suggested that underneath the composition scheme, sellers must be allowed to file annual returns, even they are going to continue to pay their taxes. At the moment, composition scheme sellers file returns and pay taxes quarterly. Additionally, it recommended that the composition scheme be extended to service suppliers with an annual turnover as much as Rs 50 lakhs. Such service suppliers pays 5 % of GST.
- GoM has also recommended that businesses with turnover as much as Rs 1.5 crore shall be offered free accounting and billing software by the GST network. Whereas GoM was formed in MSME on August final year, also for ‘Disaster Cess’ to be established in September.