The GST Council, in its 22nd Meeting which was held today in the national capital under Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses:

Composition Scheme

1. The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore.

2. This threshold of turnover for special category States, except Jammu & Kashmir and Uttarakhand, shall be increased to Rs. 75 lacs.

3. The turnover threshold for Jammu & Kashmir and Uttarakhand shall be Rs. 1 crore

4. It has been decided that such persons who are otherwise eligible for availing the composition scheme and are providing any exempt service, shall be eligible
for the composition scheme.

5. The facility of availing composition under the increased threshold shall be available to both migrated and new taxpayers up to 31.03.2018.

6. A Group of Ministers (GoM) shall be constituted to examine measures to make the composition scheme more attractive.

Relief for Small and Medium Enterprises

1. It has now been decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services.

2. To facilitate the ease of payment and return filing for small and medium businesses with annual aggregate turnover up to Rs. 1.5 crores, it has been decided that such taxpayers shall be required to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis, starting from the Third Quarter of this Financial Year i.e. October-December, 2017.

3. The due dates for the months of August and September, 2017 will be announced in due course.

4. The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 shall be suspended till 31.03.2018

5. It has been decided that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods.

6. The services provided by a GTA to an unregistered person shall be exempted from GST.

Other Facilitation Measures

1. It has been decided that registration and operationalization of TDS/TCS provisions shall be postponed till 31.03.2018.

2.The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018.

3. The last date for filing the return in FORM GSTR-4 by a taxpayer under composition scheme for the quarter July-September, 2017 shall be extended to 15.11.2017

4. The last date for filing the return in FORM GSTR-6 by an input service distributor for the months of July, August and September, 2017 shall be extended to 15.11.2017.

5. Invoice Rules are being modified to provide relief to certain classes of registered persons.

Related Government Press Releases

Change in GST Rate on Services / Job Work approved by GST Council

8 Relief Measure approved for exporters by GST Council

12 decisions taken by GST Council for Small and Medium Enterprises

Govt reduces GST rate on 28 type of goods and provided IGST exemption on few goods

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DISCLAIMER:

The information cited in this document is mostly based on Press Information Bureau, Government of India, Ministry of Finance, 06-October-2017 21:11 IST. While every effort has been made to keep, the information cited in this article error free, Team GSTCornor does not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this article.

This article includes general information about legal issues and developments in the proposed law of GST in India. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this article to the fullest extent permitted by law. Do not act or refrain from acting upon this information without seeking professional legal counsel.

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