The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has welcomed the new duty drawback rates announced by the government. The increased rates will provide relief to exporters, says Narain Aggarwal, Chairman SRTEPC. The drawback rates declared now need to be enhanced at least up to 6 per cent to 7 per cent. The Goods and Services Tax (GST) Council has decided to raise Composition Scheme Limit and Exemption Threshold to benefit small and medium enterprises (SMEs).The threshold has been doubled for people living in the hilly states and those in the North East region to Rs 20 lakh from the earlier Rs 10 lakh. The GST Council has comforted the tax exemption limit to Rs 40 lakh of annual turnover from the earlier cap of Rs 20 lakh and increasing the composition scheme (without input tax credit and no recovery of taxes on output liability) limit to Rs 1.5 crores from present Rs 1 crore.

The GST Council will also provide composition scheme to those providing services or mixed supplies (goods and services) with a turnover up to Rs 50 lakh. Secondly, service providers and those who render mixed supplies of goods and services with a turnover of up to Rs 50 lakh in the informal sector will be entitled to the composition scheme under the GST regime. The composition rate for services has been put at 6 per cent. Moreover, composition taxpayers will pay tax quarterly, but file returns annually.