The council has also waived the compulsory registration norms for small businesses with annual turnover up to Rs 40 lakh and Rs 20 lakh for goods and services respectively, using e-commerce platforms to sell products and allowing them to opt for a composite scheme, benefitting about 1.2 lakhs small taxpayers.
The council is leant to have recommended that GST on transport of goods and passengers by ropeways be reduced from 18% to 5% with Input Tax Credit of services, to give relief to hilly states.
The council has also recommended that GST on renting of goods carriage with operators where the cost of fuel is included in the consideration be reduced from 18% to 12%. The council argued that reason for lower rates on transport of goods and passengers is that petrol, diesel, ATF are outside GST.
Good Transportation operators by road can will now have the flexibility to opt for paying GST at 5% without ITC or opting for paying GST at 12% with ITC. The operators can switch from one option to another at the beginning of the Financial Year.
Currently transport of goods by road attracts GST at 5% and 12% and those who opt to pay GST at 12% do not have the option to switch and they have to pay 12% GST on all their consignments under forward charge.
The council has also recommended that in such cases proportionate value of the foreign component of the tour may be exempted from GST.
In a relief to foreign tour packages outside India, proportionate value of the foreign component of the tour may be exempted from GST.
Currently, in case of tours conducted partially in India and partially outside India such as Nepal or Bhutan, GST has to be paid on the price charged for the entire tour.
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Relief to small ecommerce business
The Goods and Services Tax(GST) council has also waived the compulsory registration norms for small businesses with annual turnover up to Rs 40 lakh and Rs 20 lakh for goods and services respectively, using e-commerce platforms to sell products, benefitting about 1.2 lakhs small taxpayers.
The move is expected to be implemented from January 2023, as it would require technical changes to be made on the portal, sources said.
Currently, suppliers supplying through e-commerce are required to take compulsory Goods and Services Tax (GST) registration.
Also, businesses with a turnover of up to Rs 1.5 crore and making e-commerce supplies would be allowed to opt for the composition scheme, which offers a lower rate of tax and simpler compliance.
Currently, businesses supplying through e-commerce cannot avail the composition scheme.
The changes would bring in parity between entities who are doing businesses through either online and offline mode under GST.