On Wednesday the goods and services tax Council gave some relief to the transport sector slashing GST on ropeways, renting of goods carriage including exempting the foreign component of the tour package from GST and fuel cost.
The transportation of goods is likely to be cheaper. Council has also abandoned the compulsory registration norms for small businesses with an annual turnover of Rs.40,00,000 and 20 lakhs for goods and services respectively. Using e-commerce platform to sell products and allowing them for a composite scheme benefiting about 1.2 lakh small taxpayers. GST on the transport of goods and passengers by ropeways will be reduced from 18 to 5% with an input tax credit of services. The council has recommended that GST in renting of good carriages with operators what is the cost of fuel is included in the consideration. The council has argued that the reason for lower rates on the transport of goods is petrol and diesel. Good transportation operators by road and now it will have the flexibility for paying GST at 5% without ITC. The operator can switch from one to another beginning of the financial year. Currently, goods by a road attract GST at 5% and 12% and those who opt to pay GST at 12% do not have the option to switch and they will have to pay 12% of GST. The council recommended that in such case the proportionate value of four in the component of a tour may be exempted from GST. Relief for foreign tour packages outside India, the proportionate value of four in a component can be exempted from GST. Currently, on tours conducted partially in India and partially outside India such as in Nepal or Bhutan, the GST was charged for the entire Tour. The move is expected from January 2023, as it requires changes in technical and portal sources. Suppliers who are supplying through e-commerce or are now required to take GST registration. All the businesses with a turnover of up to rs.1.5,00,00,000 and also making e-commerce supplies would now be allowed to opt for the schemes which offer simpler compliances and a lower rate of tax. But businesses that are supplying through e-commerce cannot have access to the scheme.
This decision Will boost Digital India's agenda and will also help small businesses said the chief corporate affairs officer, of Flipkart group. However, the waiver is subject to certain conditions:
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