A panel is reviewing the 18 per cent GST tax rate that you now pay for eating out at AC restaurants.
This exemption that is being given to them, extending existing advanced authorisation, export promotion, capital goods, EPCG, and 100 per cent EOU, till March 31, 2018.
Former finance minister Yashwant Sinha's tell-all write-up slammed Jaitley for the "mess" the economy is in due to demonetisation and the implementation of GST.
According to sources, the GST council will also discuss on quarterly filing of returns instead of monthly filing by exporters.
Diesel engine parts will not attract 18% GST, compared to 28% before.
Rate on many job work items reduced to 5% from 12%.
After small traders raised concerns by about the impact of GST on their business, the GST Council on Friday allowed them to file returns and pay taxes once in three months as against the current monthly filing schedule.
More businesses-traders, restaurants and manufacturers-can now sign up for a liberal quarterly tax return filing and payment scheme called the "composition scheme" by raising thethreshold to Rs1 crore of annual sales from Rs75 lakh.
Similarly, GST rate on artificial jewellery may be cut to 5 per cent from 12 per cent and GST rate cut on unbranded cereals may be cut to 5 per cent from 12 per cent. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. Similarly, tax on paper waste was also reduced from 12 percent to 5 percent.
"So, the composition scheme where firms with upto Rs. 75 lakh turnover can participate - now that has been expanded today to include firms with turnover upto Rs 1 crore".
The imposition of GST had made their costing haywire, particularly for products having higher GST rate, as they have to pay GST and seek refund after some time lag, FIEO said in a statement.
E-wallet for exporters to start from April 1, 2018, says FM Arun Jaitley.
For July exports, the government will process refund cheques by Oct 10 & for Aug exports, will process refund cheques by Oct 18.
The finance minister added that the pattern of collection [of the GST] is not clear after two months, because it was a period of transition.