New Delhi [India], September 4 (ANI): The GST Council has introduced a simplified Goods and Services Tax (GST) registration scheme, aimed at easing compliance for small and low-risk businesses.
The reform, announced under the next-generation GST reforms on Wednesday, focuses on speeding up approvals and reducing hurdles for entrepreneurs.
Under the new scheme, businesses identified as low-risk on the basis of risk parameters and data analysis will be granted automatic registration within three working days.
Additionally, applicants who voluntarily declare that they are unlikely to exceed an input tax credit (ITC) claim of Rs 2.5 lakh per month will also be eligible to opt for this simplified process.
The government estimates that around 96 per cent of new applicants are expected to benefit from the simplified mechanism.
Meanwhile, the GST Council has decided upon major changes in tax rates on automobiles as part of the next-generation GST reforms announced by Prime Minister Narendra Modi.
In the automobile segment, GST on petrol and petrol-hybrid cars, as well as LPG and CNG variants not exceeding 1200 cc engine capacity and 4000 mm length, has been reduced from 28 per cent to 18 per cent.
Diesel and diesel-hybrid cars with engine capacity not exceeding 1500 cc and 4000 mm in length will also see their rates come down from 28 per cent to 18 per cent.
Three-wheeled vehicles, motorcycles with engine capacity up to 350 cc, and motor vehicles used for the transport of goods will similarly move from the 28 per cent bracket to 18 per cent.
For the agriculture sector, tractors, which earlier attracted 12 per cent GST, will now be taxed at 5 per cent.
Tractor tyres and parts, which were in the 18 per cent slab, have also been brought down to 5 per cent.
The restructuring reduces the tax burden across multiple categories of vehicles and farm machinery. (ANI)
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