Digital Payments and Empowering MSME sector: 29th GST Council Meeting

29th GST Council Meeting

It has almost been a whole year since the implementation of GST. It is safe to say that there were many initial glitches in the implementation of the act. However, the government has introduced many radical changes in the GST Returns as well as GST registration procedures with simplified GST refund claim procedures as well as appointing the office of the GST commissioner(Investigation). The 29th meeting of the GST council was held on the 4th of August 2018.  The meeting was basically to held to discuss the provisions of incentivizing digital payments and empowering MSME sector. The 28th GST council meeting held on 21st of July was one which brought joy to middle-class income households because of GST reduction on household items.
The 30th GST Council meeting has been officially announced. It will be taking place in Goa on the 29th-30th of September 2018

Aims of 29th GST Council Meeting

The 28th meeting of the GST council was a major relief to the traders and services industry businessmen. There was a lot of deliberation in the meeting for the Micro, Small and Medium Entreprises (MSME)  and issues surrounding them.MSME’s are an important part of our economy as they provide employment to over 5 Crore Indians. Read on: Importance of MSME in India.

Under the GST rules, the MSME have enjoyed quite a lot of relaxation with the compliance rules deadline exemptions, composition schemes as well as the Quarterly filing of GST return among many others. These helped out with the many issues surrounding these enterprises.

The 29th Meeting aimed at addressing more issues related to these enterprises. Let’s look at the agendas of the Council Meeting.

MSMEs and their issues

  • Inter-State supplies will be provided with a threshold exemption of Rs. 20 Lakh.
  • Proposal to increase exemption limit for generating an e-way bill to Rs. 1 lakh. Some states could be exempt from generating e-way bill altogether
  • Plans to cut down tax rates up to 5% for agro products manufacturing SME units.
  • Propositions to fasten the process of GST refund
  • To modify the existing definition of MSME based on turnover, aligning the new definitions with GST laws.
  • Helping devise a strategy to deal with and put an end to disputes cause during the VAT(Value Added Tax) regime. Discussions on a one-time resolution process applicable to all states.

Incentivizing Digital Payments

  • Plans to popularize the digital modes of payment such as RuPay Cards, BHIM UPI, UPI Aadhar among the middle to low-income groups
  • Formulating and holding a discussion on the proposals for incentivization of digital payments set forth by the Committee chaired by Shri Sushil Modi which have been deferred for a year.

Conclusion

The GST council is making great strides for empowering employment and simplifying GST procedures as was discussed in the 28th meeting of the council. It is good to  see that the council made attempts to incentivize Digital Payments and Empowering MSME sector. The GST council wishes to rise above from just regulation of revenue under taxation and wants to enable traders to generate more employment. It serves as a testament to the reform GST plans to bring to our country.

GST laws can be tough to keep up with, and LegalRaasta understands this. Follow our blog for the latest updates on GST. For reading about the provisions of GST you can head over to our GST knowledge portal.

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By |2019-02-02T07:25:11+00:00September 17th, 2018|Categories: GST|Tags: , , , , , |0 Comments

About the Author:

Himanshu Jain is the founder of LegalRaasta – India's top portal for registration, trademark, return filing and loans. Himanshu is a CFA (US) & MBA (ISB). He has over 8+ years of corporate / consulting experience with top firms like McKinsey

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