Lok Sabha Question No. 270 (STARRED), answered on 2018-01-05
Subject: Demands of Small Traders
Ministry: FINANCE
Asked by: MIDHUN REDDY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA STARRED QUESTION No. 270 TO BE ANSWERED ON FRIDAY, THE 5 th  JANUARY, 2018 PAUSHA 15, 1939 (SAKA)

## 'Demands of Small Traders'

- *270. SHRI P.V. MIDHUN REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the small traders in the country are severely hit by the Goods and Services Tax (GST) and if so, the details thereof along with the demands made by them;
- (b) whether the Government is considering the demands of small traders; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## FINANCE MINISTER

(SHRI ARUN JAITLEY)

- (a) to (c) A Statement is laid on the table of the House.

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## STATEMENT  AS  REFERRED  TO  IN  REPLY  TO  PARA  A  TO  C  OF  LOK SABHA STARRED QUESTION NO 270 FOR ANSWER ON 5 TH JANUARY 2018/ PAUSHA 15, 1939 (SAKA) REGARDING DEMANDS OF SMALL TRADERS

- (a) to (c) Implementation of GST is a complete shift from the existing indirect tax laws, and few representations have been received from small traders regarding the difficulty faced  by  them  in  adjusting  to  the  new  tax  regime  including  additional  compliance requirements. In order to address these difficulties and for constant improvement of the GST law and procedures, certain decisions have been made by the GST Council. Some  of  the  decisions  taken  by  the  Council,  which  have  been  implemented  by issuance of necessary notifications and circulars, are mentioned below:
- i. Increase in aggregate  annual  turnover  threshold  for eligibility under  the composition scheme from Rs. 75 lakh to Rs. one crore for 27 States (including Jammu & Kashmir and Uttarakhand).
- ii. Increase  in  the  aggregate  annual  turnover  threshold  for  eligibility  under  the Composition  scheme  from  Rs.  50  lakh  to  Rs.  75  lakh  for  Special  Category States  (as  specified  in  sub-clause  (g)  of  clause  (4)  of  article  279A  of  the Constitution) other than Jammu & Kashmir and Uttarakhand.
- iii. Taxpayers  having  annual  turnover  of  up  to  Rs.1.5  crore  in  the  previous  year provided with an option to file quarterly Returns.
- iv. Registered persons making supply of goods to make payment of tax on issuance of invoice and not at the time when advances are received.
- v. Suspension of the application of reverse charge mechanism under Section 9(4) of the CGST/SGST Acts, 2017 and Section 5(4) of the IGST Act, 2017 till 31 March, 2018 for all categories of registered persons.
- vi. Uniform  rate  of  tax  @1%  under  composition  scheme  for  manufacturers  and traders.  The  turnover  of  taxable  goods  to  be  considered  for  eligibility  for  the Composition scheme for traders.
- vii. Supply of exempted services by composition taxpayer will be allowed and the same will not be taken into account while computing the aggregate turnover.
- viii. Amount of late fee payable for delayed filing of return in Form GSTR-3B by a taxpayer whose tax liability for the month was 'Nil' reduced to Rs.20/- per day (Rs.10/-  per  day  each  under  CGST  &  SGST  Acts)  subject  to  maximum Rs.5000/- each under Act from October, 2017.
- ix. The amount of late fee payable for delayed filing of return in Form GSTR-3B by  other  taxpayers  reduced  to  Rs.  50/-  per  day  (Rs.  25/-  per  day  each  under CGST  &  SGST  Acts)  subject  to  maximum  Rs.5000/-  each  under  Act  from October, 2017.