The Proactive approach to a mistake is to acknowledge it instantly, correct and learn from it.

Stephen Covey

Yes, there have been many issues with post GST Implementation, however, before criticizing the council or government, please do consider the diversity in all aspect our country possess. GST implementation is a huge transformation and will definitely take time span on 1 to 2 years before being stabilized. So ignoring the political angle, I would really appreciate the decisions taken in 22nd GST Council meeting held on 6th October 2017. Government and GST Council have been very proactive till date as far as taking the decisions and I hope they remain so in future.

Following are some of the key take away from 22nd GST Council Meeting held on 6th October 2017:

1. COMPOSITION TAX PAYER LIMIT INCREASED:

The limit for composition tax payer has been increased to Rs. 1 Crore from Rs. 75 Lakhs presently. For Special category states (except Jammu Kashmir & Uttarakhand) the same has been increased to Rs.75 lakhs from Rs. 50 Lakhs.

2. TIME LIMIT TO AVAIL THE COMPOSITION FACILITY INCREASED:

Facility to avail the composition scheme UNDER THE INCREASED THRESHOLD shall be available to both migrated and new tax payer up to 31st March 2018.

3. New entrants for Composition scheme can be partly for the quarter as well. i.e. if you enter the composition scheme on 1stNovember 2017, for the quarter Oct-Dec, The assesse shall file return as regular assesse for October and for November and December he shall file return as composition tax payer.

4. TRADER PROVIDING EXEMPT SERVICE CAN OPT FOR COMPOSITION SCHEME:

Persons who are otherwise eligible for composition scheme but are providing any exempt service (such as extending deposits to banks for which interest is being received) were being considered ineligible for the said scheme. 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. INTERSTATE SERVICE SUPPLIER LIABLE FOR REGISTRATION ONLY IF TURNOVER EXCEEDS RS. 20 LAKHS:

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. This measure is expected to significantly reduce the compliance cost of small service providers.

6. QUARTERLY RETURNS FOR ASSESSE HAVING TURNOVER UPTO RS. 1.5 CRORES:

GSTR 1, GSTR 2 and GSTR 3 shall be filed quarterly by the asessee having t/o up to Rs. 1.5 crores, from 3rd Quarter Oct-Dec 2017 on wards. However all such taxpayer shall be required to file GSTR 3B atleast upto December 2017.

7. Reverse Mechanism Charge has been suspended till 31stMarch 2018 with respect to purchase from Un Registered Supplier.

8. Small dealers (Whose turnover is upto Rs. 1.5 Crore) are not required to pay tax on advance received.

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

10. TDS/TCS provisions shall be postponed till 31.03.2018.

11. 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.

12. 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.

FOLLOWING HIGH LEVEL LIST OF RATE CHANGED ITEMS

Item Old Rate New Rate
– Khaakhra

– Plain Chapaati Roti

– Namkeen other than sold under brand name

– Ayurvedic, Unani, Siddha, Homeopathy medicines other than those bearing brand name

12% 5%
– Scrap of Plastic, Rubber, Paper

– Cullet or other waste or scrap of Glass

18% 5%
– Sewing thread of manmade filaments

– All synthetic filament yarn, such as nylon, polyester, acrylic, etc.

18% 12%
– Plain Shaft Bearing 8483

– Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP

28% 18%

Disclaimer: The above article is based on the understanding of the author of the revised rules published on 31st March 2017. Any Suggestion in this regard is highly appreciated. You can provide your suggestion on camayur2@gmail.com/ 85300 89839.

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2 Comments

  1. Vaidyanathan H K says:

    GST Portal creation is given to a very poor organization who has no thinking of the harassment to dealers whose submission for the succeeding month is blocked for non submission of return for the preceding month for any reason including system fault generated by the preparatory in a foolish manner. Finance Ministry should have thought about this. Poor knowledge.

  2. Pralay Chakraborty says:

    Wonderful composition. One additional details may require for point No. 8. GST is not required to be paid on advance by the small taxpayers is correct but the benefit is only available for supply of goods & not for services. Means, if small taxpayers received advance for supply of services, it continues to attract GST on advance received for the supply of service.

    Relevant extract of the press release of yesterdays GST Council meet is as follows:-

    “In order to mitigate their inconvenience on this account, 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. The GST on such supplies shall be payable only when the supply of goods is made.”

    Hope it helps.
    Pralay Chakraborty

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