Tag Archives: Taxability under GST

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.