CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai

GST Council in the 32nd meeting held on 10th  January, 2019 at New Delhi took following decisions to give relief to MSME (including small traders), and took following other decisions but same would be given effect to through Gazette notifications/ circulars which shall have the force of law.-

1 Increase in turnover limit for the existing composition scheme for goods : The limit of annual turnover in the preceding financial year for availing composition scheme for goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the composition limit in their respective States.
2  

Composition scheme for services:

 

A composition scheme shall be made available for suppliers of services (or mixed suppliers) with a tax rate of 6% (3% CGST + 3% SGST) having an annual turnover in preceding financial year up to Rs 50 lakhs.

The said scheme shall be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods.

3 Compliance simplification under composition scheme : The compliance under composition scheme shall be simplified as now they would need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration). 
4 Higher exemption threshold limit for supplier of goods:  

There would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e. Rs.40 lakhs and Rs.20 lakhs.

States would have an option to decide about one of the limits within a weeks’ time.

The threshold for registration for service providers would continue to be Rs 20 lakhs and in case of Special category States Rs 10 lakhs. 

4.   Effective date : The decisions at Sl. No. 1 to 3 above shall be made operational from the 1st of April, 2019.
5.  Free Accounting and Billing Software Software for Accounting and Billing shall be provided to small taxpayers by GSTN.

 

6.   Matters referred to Group of Ministers : i. A seven member Group of Ministers shall be constituted to examine the proposal of giving a composition scheme to boost the residential segment of the real estate sector.

ii. A Group of Ministers shall be constituted to examine the GST rate  structure on lotteries.

7.   Revenue mobilization for natural calamities in the State of Kerala :  

GST Council approved levy of cess on intra State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.

8. Approval for amendment in Acts and rules Changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, notifications and Circulars issued earlier and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.
9 Extension of date for Passing GSTP Examination The last date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b) i.e. who were sales tax practitioner or tax return preparer under the existing law for a period of not less than five years.

   Note:  Contents in this circulation are based on the press release issued by the GST Council.­­

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Category : Goods and Services Tax (8408)
Type : Articles (18522)

3 responses to “Decisions taken by GST Council in its 32 Meeting on 10.01.2019”

  1. vswami says:

    A self correction(:
    In the comment, fifth line from top, should read- ‘so as’ to…

  2. vswami says:

    A self correction (;
    In the comment, , fifth line from top, to read-…’ so as to’ ….

  3. vswami says:

    OFFHAND
    6. Matters referred to Group of Ministers : i. A seven member Group of Ministers shall be constituted to examine the proposal of giving a composition scheme to boost the residential segment of the real estate sector.
    ii……..”

    The levy has, as is to be noted, an impact on all the under construction contracts (for building complexes).. As such, though the rate is one of the predominant factors to be reckoned and /taken into account in ‘pricing’., should have been decisively fixed , so as to be in force right from the date on which the levy , – albeit open to be totally contested on other valid grounds,- so assc to avoid otherwise inevitable fall out problems. Not having been so done, the further deferment of rate fixation, with no time frame indicated even now, is sure to lead to hardships and disputes, adversely affecting , not only the promoters, but also the buyers destined to eventually bear the burden of such a further postponement of the rate fixation.
    For a dilation, look up the viewpoints personally shared on FB and Linkedin.

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