Sales Tax Rates Slashed as India Faces Deepening Growth Slowdown
- Exporters, facing liquidity issues, receive short-term relief
- GST Council to reduce compliance burden for some businesses
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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 GST Council, headed by Finance Minister Arun Jaitley, allowed exporters to continue with exemptions that existed before the tax roll out until the end of the financial year in March 2018. For small businesses, it was decided that establishments with 10 million rupee ($152, 686) turnover can deposit tax under a composition scheme, helping them to avoid tedious filing. The earlier limit was set at 7.5 million rupees. Businesses with a turnover of up to 15 million rupees can file quarterly returns, Jaitley announced.