Arjuna (Fictional Character): Krishna, 37th GST Council Meeting was held on 20th September, 2019. Diwali Dhamaka changes were made in Income Tax. On the same day, what were the recommendations for GST in the meeting?
Krishna (Fictional Character): Arjuna, seeing the changes made in Income Tax, same were expected in GST. But only law and procedure related changes were recommended. Also, GST rates related to supply of goods and services were proposed to change.
Arjuna: Krishna, What were the proposed changes in law and procedures?
Krishna: Arjuna, The recommendation in relation with law and procedures are:
1. Relaxation in filing of annual returns for FY 2017-18 and FY 2018-19 as under:
2. Filing of FORM GSTR-9 has been made optional for those taxpayers who have aggregate turnover up to Rs. 2 crores for the said tax periods.
3. Also, waiver to composition Taxpayers has been given from filing FORM GSTR-9A for the said tax periods.
4. The circular dated 28th June, 2019 which was brought to provide clarification on various doubts in relation to post sales discount has been rescinded.
Arjuna: Krishna, What were the recommendations for changes in GST rate for services?
Krishna: Arjuna, The recommendation for changes in GST rate for services are as follows:
1. The GST rate of tax on hotel accommodation service is nil till transaction value of Rs. 1000 per day. If the transaction value is above Rs. 1000 per day but below Rs. 7500 per day then GST rate of 12% is applicable. Also, GST rate of 18% is applicable if transaction value is above Rs. 7500 per day.
2. The GST tax rate on outdoor catering services other than in premises having tariff of unit of accommodation of Rs 7501 per day has been reduced. It was reduced to 5% without ITC from present 18% with ITC. The rate shall be mandatory for all kinds of catering.
3. Catering in premises with tariff of Rs 7501 and above per day shall remain at 18% with ITC.
Arjuna: Krishna, What were the recommendations for changes in GST rate for goods?
Krishna: Arjuna, The recommendation for changes in GST rate for goods are as follows:
1. Dried tamarind
2. Plates and cups made up of leaves/flowers/bark.
Arjuna: Krishna, what lesson should one learn from this?
Krishna: Arjuna, to give boost to economy government has given major reliefs in Income Tax. Similarly, major reliefs were expected in GST like lowering of GST rate for automobile sector, option of “revise” return for GST, etc. But it happened other way round, in lighter note someone told, “Suvidha in Income Tax, while Duvidha in GST.”
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