Tag Archives: 22nd Meeting of GST Council

GST Adviser in Delhi

Changes in GST (Goods & Service Tax)

  • Annual aggregate turnover for availing composition scheme increased to 1 Cr. (Special category states-75Lacs except J&K and UK)
  • Composition scheme can be availed till 31.03.2018 by both- migrated and new tax payers.
  • Persons providing exempt services but otherwise eligible for Composition Scheme can now avail the benefit.
  • Relief from getting registered, if turnover less than 20 Lacs and dealer involved in inter-state taxable supplies.
  • Quarterly returns (GSTR-1,2&3) from third quarter (Oct-Dec 2017) if turnover up to 1.5 Cr with quarterly payment of taxes from Quarter 4.
  • GSTR-3B to be filed monthly till Dec 2017.
  • Reverse Charge Mechanism on supply from unregistered dealer, suspended till 31.03.2018.
  •  No GST to be paid on advances received if turnover up to 1 Cr.
  •  Services by GTA to unregistered – Exempted from GST.
  •  Registration and operationalization of TDS/TCS provisions postponed till 31.03.2018.
  •  E-way bill system to be introduced from 01.01.2018 and to be rolled out nation wide from 01.04.2018.
  •  Due date for filing GSTR-4 & GSTR 6 extended till 15.11.2017.
  •  Invoicing rules are being modified.
  •  GST rates reduced significantly on Goods as well as Services.
  • Refund procedure for exporters to be expedited.
  •  Electronic wallet (e-Wallet) will be set up by April, 2018 for refunds
  • to exporters.
  •  Exporters will get a notional advance amount in their e-Wallets and it will be later offset with tax refunds.

 

Goods Transport Agency (GTA)

  • “Goods Transport Agency” – any person providing service of transport of goods by road and issuing consignment note.
  •  “Consignment Note” – a document, issued by a GTA against the receipt of goods to be transported in a goods carriage, containing prescribed details.
  • To qualify as services of GTA, issuance of consignment note is must.
  • Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt.
  • The service of transportation of goods by road continue to be exempt even under the GST regime.

   Taxability Under GST

  • For specified recipient, GST to be paid under Reverse Charge Mechanism.
  •  For non-specified recipients, GTA can opt for collecting and paying taxes :
    ▪ @ 12% (6% CGST + 6% SGST) with availment of ITC
    ▪ @ 5% (2.5% CGST + 2.5% SGST) without claiming ITC.
  •  No GST payable on inputs for hiring transport to provide output service.
  •  Services from GTA to unregistered, exempted from GST.

 

Goods and Services Tax

Key Changes in GST (22nd Meeting of GST Council)

  1. In order to ease the compliance burden of SME Sectors, following amendments has been recommended:
    •  Composition Scheme will be available up to the turnover of Rs. 1 Crore. Tax Rate for Composition Scheme will remain same at present level.
    •  Person with a turnover up to 1.5 Crore will be required to furnish the quarterly return instead of monthly return. Tax will also be required to be paid on Quarterly basis. Switchover will take place from 1st October.
    •  Returns from July to September’ 2017 will still be required to be filed on monthly basis.
    •  Big Tax Payers filing monthly basis who are purchasing goods from small tax payers will require to avail credit through their GSTR 2 by filing manual feeding.
  2. E-way bill will be tried to notify upto 1st April, 2018 nation wide.
  3. Applicability of Reverse Charge on Inward Supply from unregistered person is deferred will 31st March 2018.
  4.  TDS & TCS Provisions will be effective from 1st April 2018.
  5.  Service Provider with a turnover of upto 20 Lakh will be exempted with applicability of GST on their Inter-State supply.
  6.  Refund to exporters will be granted with effect from 10th October for the month of July and with effect from 18th October for the month of August.
  7.  Future exports can be made by the merchant exporter at nominal rate of 0.1% IGST up to 31st March. Preferably by 1st April, 2018, E-wallets system will be developed for exporters.
  8.  Issues with respect to allowing composition taxpayers to make inter-state outward supply, to pay composition tax only on taxable items will be studied by group of ministers (GOM) on urgent basis.
  9.  Now suppliers having upto  20 lacs interstate supplies shall not be require to have mandatory registration .
  10.  Tax Rates of around 27 items has been revisited by fit-ment committee. Changes rates for some items are as follows:
  •  From 12 to 5: Unbranded namkeen, Unbranded ayurvedic medicines, Paper Waste,
  •  From 18 to 5: Plastic Waste, Rubber Waste,
  •  From 28 to 18: Parts of Diesel Engine, Stationary items, Stones used for flouring except marble and stone
  • From 18 to 12: Man-made Yarn
  •  Many Items of Job Work for example printing items are reduced to 5% from 12%.
  •  Rates for government construction contracts in several case where labour component is more such as irrigation projects are reduced to 5% from 12%.

 

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