The decision of the GST Council to cut rates and simplification of return filing process will increase the compliance rate and add to revenue buoyancy, industry chamber CII said on Sunday.
The decisions taken in the meeting of GST council on July 21 will greatly benefit trade and industry, CII Director General Chandrajit Banerjee said.
"The attention to reducing rates and simplification of filing of returns as well as a widening of input tax credit shall certainly increase the compliance rate and add to revenue buoyancy," CII said.
The government and GST Council have been responsive and proactive to the requirements of trade and industry since the very roll out of GST, which has made its implementation the shortest period of adjustment as compared to other countries, it added.
Raising the limit for composition scheme from Rs 10 million to Rs 15 million, permitting composition dealers to supply services (other than restaurants) for up to a value not exceeding 10 per cent of turnover in preceding financial year or up to Rs 5 lakh and other decisions shall particularly benefit the SME sector, the industry body said.
GST Council also allowed businesses with turnover of up to Rs 50 million to file quarterly returns -- a move which will benefit 93 per cent of the GST registered taxpayers. They will have to, however, pay taxes monthly.
So far, businesses with turnover of up to Rs 15 million were permitted to file returns quarterly.
The council yesterday cut rates on 88 items, including ethanol, carpets, fridge, washing machine, paints and varnishes and also allowed input tax credit for textile sector.