Coimbatore: The Coimbatore District Small Scale Industries Association (CODISSIA) has welcomed the announcement made by Finance Minister Nirmala Sitharaman relating to GST for various MSME industries.
Coimbatore: The Coimbatore District Small Scale Industries Association (CODISSIA) has welcomed the announcement made by Finance Minister Nirmala Sitharaman relating to GST for various MSME industries.
"Our long-standing demand for reduction in GST on job work has been conceded. And, GST has been reduced from 18% to 12% on the supply of machine job work in the engineering industry which is a very welcome amendment for the job work units in Coimbatore", a release from the industrial body said.
According to CODISSIA, the amendments made in the recent GST review Council meeting held in Goa on September 20 will largely benefit the industries in Coimbatore in a big way.
• GST reduction from 12% to 5% on wet grinders is a very welcome amendment for the wet grinder manufacturers in Coimbatore.
• GST reduction for outdoor catering from 5% from 18% will absolutely benefit everyone, since the costs will get cheaper.
• GST council recommends lower 12% cess on 1,500 cc diesel, 1,200 cc petrol vehicles with capacity to carry up to 13 people.
• Uniform GST rate of 12% to be levied on polypropylene bags and sacks used for the packing of goods.
• NIL rate for cups and plates made from leaves and hides.
• From 18% to 12% on slide fasteners
• A uniform GST rate of 12% will be levied on woven/non-woven polyethene bags
Gems and Jewellery sector
In a major boost to gems and jewellery sector, the council recommended to reduce GST on cut and polished semi-precious items to 0.25 per cent from 3 percent.
1.5% from 5% on job work in the diamond industry, which will be very useful for the units engaged in the cutting and polishing of diamonds.
• Exemption from GST/IGST is being given on import of specified defence goods not being manufactured indigenously, it's being extended only up to 2024.
• GST Council cuts tax on hotel room tariffs of Rs.1,000 to Rs.7,500/night to 12% and those above Rs.7,500 to 18%.
• The GST on caffeinated beverages has been hiked to 28% plus an additional cess of 12% as against the current rate of 18 per cent.
• GST rate hiked on railway wagon, coaches from 5% to 12%.
Other Procedural Amendments proposed - Relaxations given for MSME sector for filing Annual Returns
*Waiver is given for the Composition Tax Payers from filing the Annual Return in Form GSTR-9A
*Annual return in FORM GSTR-9 made optional for those taxpayers who are required to file the said return but have an aggregate turnover up to Rs. 2 crores. This option is available for the financial year 2017-18 and 2018-19 only.
*Simplification of Annual Returns.
*Restriction on availment of Input Tax Credit
*New return system now to be introduced from April 2020 (earlier proposed from October 2019)
*Refund Process to be simplified
*Aadhar Linking to be made mandatory
The above measures will give a significant fillip to all the MSME industries in varied sectors, the release from CODISSIA noted.