11 Key Recommendation by 28th GST Council Meeting

1. Zero GST Rate for Sanitary Napkins/ Rakhi

Providing relief for women, the GST Council has recommended to exempt the Sanitary Napkins, Rakhi, etc. from GST. Besides, in the case of more than 50 items GST rates have been reduced.

2. Monthly Tax Payment and Quarterly Return by Taxpayers having Turnover upto 5 Crores

For taxpayers having turnover upto 5 crores, monthly return not required. Taxpayer has to pay the tax each month and file returns quarterly. As a result, about 93 % of GST dealers (about 80 Lakh dealers) will now be exempted from filing monthly returns.

3. GSTR Sugam and GSTR Sahaj to be Introduced for Composite/ Other Dealers

GST Council has recommended to introduce Sugam and Sahaj GST Return Forms for composite/ other dealers, for ease of compliance to be made by the taxpayers.

4. Reverse Charge Mechanism Suspended upto 30 Sept. 2019

GST Council has recommended to further defer the Reverse Charge Mechanism (RCM) upto 30 Sept. 2019.

5. Multiple Registrations for One Taxpayer in One State

Taxpayers to be allowed to obtain multiple GST Registrations even in one state, as against existing restrictions for doing so.

6. Migration window to Once Finally re-open upto 31 Aug. 2018

Those who could not migrate or who are having provisional GST Registration, can migrate/ register under GST upto 31 Aug. 2018 and applicable late fee/ penalty shall be waived.

7. Simplification and Rationalization of GST Laws, specially for MSMEs and Small Taxpayers

GST Council to meet again on 4 Aug. 2018 to deliberate and discuss issues relating to Simplification and Rationalization of GST Laws, specially for MSMEs and Small Taxpayers.

8. Refund of ITC to Textile Sector from 27 July 2018

GST Council has recommended to allow refund of unutilised ITC to taxpayers in the Textiles Sector, to boost job creation and compliance in the Sector.

9. Composition Scheme for Dealers having Turnover upto 1.5 Crore

GST Council has recommended to increase the threshold for registration under composition scheme, from Rs. 1 crore to 1.5 crore.

10. Cancellation of Registration to be Simplified

GST Council has recommended to simplify the process of cancellation of registration. Now compliance requirements will stop from the date of submission of application for cancellation, as the registration number will be suspended immediately.

11. Registration Threshold Increased from 10 Lac to 20 Lac for Certain States

GST Council has recommended to increase the turnover threshold limit for registration in the case of certain States from Rs. 10 Lac to Rs. 20 Lac, i.e. Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Uttarakhand and Sikkim (6 states).

Role of GST under Construction Property