Patna, Oct. 7: Traders, entrepreneurs, and people from different walks of life welcomed the latest decisions of the Goods and Services Tax (GST) Council chaired by Union finance minister Arun Jaitley to provide relief to them.

The GST Council, in its meeting held in New Delhi yesterday reduced tax rate on 27 different items, increasing the cut-off limit from Rs 75 lakh to Rs 1 crore annual turnover for those eligible for 'composition scheme' and giving relief to traders with a turnover of Rs 1.5 crore from monthly filing of tax returns to quarterly filing.

Bihar Chamber of Commerce and Industries (BCCI) president P.K. Agrawal told The Telegraph that the steps announced by the GST Council will simplify lives of traders and entrepreneurs.

'Increasing the cut-off limit to Rs 1 crore per annum for being eligible for composition scheme will now cover more persons, traders and entrepreneurs, under it. They will not face hassles for filing three tax returns every month and will have to file summarised tax returns every three months and will have to pay tax as a fixed percentage applicable to their nature of business,' he said.

The BCCI president added that the decision of the GST Council to form a panel to look into the problems being faced by the people in the wake of GST and address them suitably was a good move that would make the new 'one nation, one tax regime' simpler and easier.

'We have given more suggestions to the central and the state governments on the basis of difficulties and problems being faced by our members. We will now wait for more relief after the latest moves announced by the Centre. We want steps that do not reduce the revenues of the government, but at the same time provide relief to the people,' Agrawal added.

Bihar Industries Association (BIA) president K.P.S. Keshri welcomed the steps taken by the GST Council and pointed out to The Telegraph that raising the limit for quarterly filing of tax returns to Rs 1.5 crore will cover and benefit 60 to 65 per cent traders.

'Big traders or entrepreneurs could keep accountants and manage their tax returns on a monthly basis, but small traders and entrepreneurs cannot do this. Moreover, the people managing small businesses are not tech savvy to the extent to submit taxes online. Opportunity to pay tax on a quarterly basis will come as a huge relief to them,' Keshri said.

The BIA president added that reduction in tax slabs for 27 products, including unbranded namkeen, unbranded ayurvedic medicine, dried mango slices and khakra (a kind of snack) from 12 per cent to five per cent is very logical, and make the products viable among the consumers in the market.

GST on man-made yarn used in textile sector has been reduced from 18 per cent to 12 per cent, and will help growth of the sector, especially handloom and power loom.

Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts have been cut to 18 per cent from 28 per cent. GST on e-waste has been slashed to 5 per cent from 28 per cent. Food packets given to school kids under Integrated Child Development Scheme will attract 5 per cent tax instead of 12 per cent. Food and printing items, zari embroidery, imitation jewellery will now attract 5 per cent GST instead of 12 per cent.

Kalpana Singh, a housewife, said: 'I came to know that GST on a three-piece salwar suit has been reduced from 12 per cent to 5 per cent as the product has been designated as fabric. We are happy about it.'