12 Major Amendments Proposed in GST after 12 Months

Arjuna (Fictional Character): Krishna the 28^thGST council meet was held on 21^st july what was the reason for conducting this meeting?

Krishna (Fictional Character): Arjuna, the meeting was held for facilitating trade and to reduce the problem faced by taxpayers in relation to GST return, GST reverse charge mechanism,  GST Input Tax Credit (ITC) etc. These are proposed changes which could be finalized only after the Parliament gives the approval for the same. Next GST council meeting is schedule on 4^th August 2018, for further changes.

Arjuna: Krishna, what important decisions were taken in the meeting?

Krishna: Arjuna, the important decisions taken in the meeting are as follow as-

1) Many goods and services rate of taxes has been reduced w.e.f 27^th july 2018. Notification of same is awaited.

2) Small Taxpayers having turnover below 5 crore would have an option to file Quarterly returns but payment needs to be made on monthly basis. Nil Return filers (No Sale No Purchase) would be given facility to file return by sending SMS.

3) Amendment to the returns filed by way of amendment return that would be made available would be possible, this would help taxpayers to rectify the mistakes unintentionally made

4) The limit to opt in composition scheme have been raised upto 1.5 Crores from Rs.1 Crore earlier.

5) The requirement to pay tax under reverse charge mechanism for purchases made from unregistered person have been suspended , the government will notify in future the registered person liable to pay tax under reverse charge mechanism .

6) Earlier supplier of services except Restaurant Services were not allowed to opt for composition scheme but now they can apply if the value of supply of service does not exceed – higher of the amount-

1. 10% of the state turnover in the previous financial year and
2. Rs. 500000

For Eg. If a taxpayer supplies goods as well as services and had turnover of Rs.40 lakh in the previous Financial year then he can opt in composition scheme if the supply Value of services do not exceed Rs.500000 (Higher of (40 lakh*10%=400000 or Rs.500000))

7) Earlier if payment is not made to supplier within 180 days, credit availed needs to be reversed along with payment of interest but now no interest needs to be paid for the same.

8) ITC in relation food and beverages, health services, travel benefits to employees etc. was not allowed but now the ITC can be claimed if providing such goods/services to employees is obligatory for the employer under any other law.

9) Input Tax Credit in relation to Passenger Vehicle having seating capacity of more than 13 , used for other than Personal purpose would be allowed.

For. Eg A company purchase a bus for its employees conveyance, the ITC of tax paid on such bus purchased would now be available as its more than 13 seater and also not used for personal purpose

10) Repairs and maintenance of Passenger Vehicle of which ITC is available would also be allowed.

11) Taxpayer can now issue single debit/credit note against multiple invoices there is no need to link the notes to individual invoices. This is a welcomed change, as the compliance burden on the taxpayers would be reduced.

12) Utilization of SGST for IGST liability would not be allowed until and unless credit of CGST is totally utilized.

Arjuna: What lesson should be taken from this?

Krishna: After one year many changes are made by the Govt in GST. Tax payer needs to update himself and do the business. Many more changes may come in future. Hope Good and Simple Tax may be there in future.

Press Releases related to 28the GST Council Meeting on 21st July 2018

GST rate on Services- 27 Major Changes in 28th GST Council meeting

List of Changes in GST Rate on Goods in 28th GST Council Meeting

GST council approves Simplified GST Return

28th GST Council meeting- Key Takeaways

GST migration window for tax payers till 31st August, 2018