GST: Relief for SMEs, PAN no longer mandatory for purchase of jewellery over Rs 50,000
Ahmedabad/Gujarat, October 7: Bringing significant relief to the small and medium businesses and exporters, the Goods and Services Tax (GST) Council on Friday finalized a slew of relaxation measures. A large number of traders and businessmen were very disappointed with the apparent effects of demonetization and how the Goods and Services tax was implemented earlier in 2017.
Gujarat Finance Minister Nitin Patel said on Friday evening that not only the major industries of textile and diamond but smaller groups in other cities will also get the benefit. The Goods and Services Tax on almost all the items that are produced in the state has been reduced.
Chief Minister Vijay Rupani said that people are not at all against Goods and Services Tax and welcomed the idea of One Nation One Tax. There were some problems in the implementation which have now been addressed.
Dinesh Navadiya, the regional chairman of the Gems and Jewellery Export Promotion Council said that the Gujarat diamond industry is in tight competition with the markets of Israel and Belgium, where there are no taxes on diamond manufacturing, polishing and cutting businesses. it would be very difficult for Surat’s diamond industry to compete with the others when the market structures are so different.
Union Finance Minister Arun Jaitley on Friday said that small businesses will be granted to file tax returns once a
quarter instead of monthly returns.The compliance burden of small and medium-sized enterprises in Goods and Services Tax has been cut while its eligibility of composition scheme is increased to Rs 1 crore. The government also scrapped the Goods and Services tax notification on gems and jewelry. It also stated that Permanent account Number is no longer mandatory on the purchase of jewelry for over Rs 50,000.