Why is it in news?

• GST Council announced multiple decisions to reduce their compliance burdens
• Includes the eventual setting up of an e-wallet for input tax credits for exporters and the option for small businesses to file returns and pay taxes only once a quarter.  

GST Council Decisions

• The GST Council also reduced the tax rates on 27 items,
• By October 10, the refunds for July will be processed and paid, and by October 18, the same for refunds for August.
• Each exporter will get an e-wallet in which a nominal sum will be deposited for tax credit purposes, which will be offset against the credit refund when it happens. The e-wallet system is expected to roll out from April 1, 2018.
• Council is to impose a nominal 0.1% GST rate for exporters till March 31, 2018.
• The composition scheme — meant to ease compliance for small businesses — will be extended to businesses with a turnover of ₹1 crore a year from the previous limit of ₹75 lakh.
• The increase in threshold under composition scheme to ₹1 crore would bring in many more small businesses within its ambit

Group of Ministers

• The GST Council has also set up a Group of Ministers to look into various issues
  1. whether, when calculating the tax burden of a business, its total turnover should be considered or should exempt goods first be excluded.
  2. whether those who opt for the composition scheme should be allowed inter-state trade.
  3. whether the rate of tax on restaurants needs to be reduced or should they not be allowed input tax credits. 

Rate Changes

• The Council has decided to reduce the rates on several items, including sliced dried mangos, khakhra and plain chappatis, unbranded namkeen, unbranded ayurvedic medicines, plastic, rubber and paper waste, yarn, diesel engine parts, pump parts, e-waste, and several services.