The GST Council in its 32nd meeting held in Delhi, under the Chairmanship of Shri Arun Jaitley, the Union Finance Minister and the Minister of Corporate Affairs in the Cabinet of India took the following decisions, published vide press release, discussed herein below in the sequence of publication along with observation wherever found necessary for explanation and ease of understanding:
A. GST council gave approval for the following:
i. The followings will be notified w.e.f 1st February, 2019:
a. CGST (Amendment) Act, 2018,
b. IGST (Amendment) Act, 2018,
c. UTGST (Amendment) Act, 2018,
d. GST (Compensation to States) Amendment Act, 2018,
e. amendments in CGST Rules,
f. Notifications and Circulars issued earlier, and
g. Corresponding changes in SGST Acts.
ii. 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).
B. GST Council has taken the following decisions:
1. Increase in turnover limit for the existing composition scheme:
i. The limit of annual turnover in the preceding financial year for availing
composition scheme for goods shall be increased to Rs. 1.5 crore.
ii. Special category States would decide, within one week, about the
composition limit in their respective States.
Observation:
i. The phrase ‘annual turnover’ hasn’t been defined in GST law. Sec 2(6)
of the CGST Act, 2017 defines the phrase ‘aggregate turnover’. In the
absence of a clarification, this might lead to confusion.
ii. Increase in turnover is applicable for persons supplying ‘goods’ only.
iii. State wise different limit, if varies, will be a departure from uniform
applicability across nation.
iv. Large section of traders are likely to be benefited out of it.
iii. Compliance under composition scheme shall be simplified with filing
of one annual return and payment of taxes quarterly along with a
simple declaration.
Observation:
i. Proposed system will likely to ease compliance burden.
ii. Proposed simple declaration form to be reviewed.
2. Higher exemption threshold limit for supplier of goods:
a. two threshold limits for exemption from registration and payment of
GST for supplier of goods:
➢ Rs. 40 lakhs, and
➢ Rs. 20 lakhs.
❖ States would have an option to decide about one of the limits
within a weeks’ time;
b. threshold limit for exemption for service providers would continue to
be as follows:
➢ Rs. 20 lakhs, and
➢ Rs. 10 lakhs in case of Special category States.
Observation:
i. State wise separate registration limit, if decided, will be a departure
from uniform applicability across nation.
3. Composition scheme for services:
i. A composition scheme shall be made available for supplier of service
(or mixed suppliers) with a tax rate of 6% (3% CGST plus 3% SGST);
ii. The scheme is available having an annual turnover in preceding
financial year up to Rs. 50 lakhs;
iii. The said scheme shall be applicable to the following suppliers who are
presently not eligible for the presently available composition scheme for
goods:
➢ supplier of services, and
➢ supplier of goods and services.
iv. Such supplier will be liable to file one annual return and quarterly
payment of taxes along with a simple declaration.
Observation:
i. This will beneficial for small service providers.
4. Decisions stated in B(1), B(2) and B(3) above, shall be made operational
from 1st April, 2019.
5. Free Accounting and Billing Software shall be provided to small taxpayers
by GSTN.
6. Matters referred to Group of Ministers:
i. A seven member Group of Ministers (GoMs) shall be constituted to
examine the proposal of giving a composition scheme to boost the
residential segment of real estate sector;
ii. A Group of Ministers (GoMs) shall be constituted to examine the GST
rate structure on lotteries.
7. Revenue mobilisation for natural calamities:
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.
Observation:
i. Revenue mobilisation, for natural calamity, in the form of cess, appears to
have planned for the State, from the State itself where such calamity took
place.
Source: PIB
Disclaimer: The publications contain information solely for informational purpose. It
is not a guidance note and does not constitute any professional advice at all.
A. GST council gave approval for the following:
i. The followings will be notified w.e.f 1st February, 2019:
a. CGST (Amendment) Act, 2018,
b. IGST (Amendment) Act, 2018,
c. UTGST (Amendment) Act, 2018,
d. GST (Compensation to States) Amendment Act, 2018,
e. amendments in CGST Rules,
f. Notifications and Circulars issued earlier, and
g. Corresponding changes in SGST Acts.
ii. 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).
B. GST Council has taken the following decisions:
1. Increase in turnover limit for the existing composition scheme:
i. The limit of annual turnover in the preceding financial year for availing
composition scheme for goods shall be increased to Rs. 1.5 crore.
ii. Special category States would decide, within one week, about the
composition limit in their respective States.
Observation:
i. The phrase ‘annual turnover’ hasn’t been defined in GST law. Sec 2(6)
of the CGST Act, 2017 defines the phrase ‘aggregate turnover’. In the
absence of a clarification, this might lead to confusion.
ii. Increase in turnover is applicable for persons supplying ‘goods’ only.
iii. State wise different limit, if varies, will be a departure from uniform
applicability across nation.
iv. Large section of traders are likely to be benefited out of it.
iii. Compliance under composition scheme shall be simplified with filing
of one annual return and payment of taxes quarterly along with a
simple declaration.
Observation:
i. Proposed system will likely to ease compliance burden.
ii. Proposed simple declaration form to be reviewed.
2. Higher exemption threshold limit for supplier of goods:
a. two threshold limits for exemption from registration and payment of
GST for supplier of goods:
➢ Rs. 40 lakhs, and
➢ Rs. 20 lakhs.
❖ States would have an option to decide about one of the limits
within a weeks’ time;
b. threshold limit for exemption for service providers would continue to
be as follows:
➢ Rs. 20 lakhs, and
➢ Rs. 10 lakhs in case of Special category States.
Observation:
i. State wise separate registration limit, if decided, will be a departure
from uniform applicability across nation.
3. Composition scheme for services:
i. A composition scheme shall be made available for supplier of service
(or mixed suppliers) with a tax rate of 6% (3% CGST plus 3% SGST);
ii. The scheme is available having an annual turnover in preceding
financial year up to Rs. 50 lakhs;
iii. The said scheme shall be applicable to the following suppliers who are
presently not eligible for the presently available composition scheme for
goods:
➢ supplier of services, and
➢ supplier of goods and services.
iv. Such supplier will be liable to file one annual return and quarterly
payment of taxes along with a simple declaration.
Observation:
i. This will beneficial for small service providers.
4. Decisions stated in B(1), B(2) and B(3) above, shall be made operational
from 1st April, 2019.
5. Free Accounting and Billing Software shall be provided to small taxpayers
by GSTN.
6. Matters referred to Group of Ministers:
i. A seven member Group of Ministers (GoMs) shall be constituted to
examine the proposal of giving a composition scheme to boost the
residential segment of real estate sector;
ii. A Group of Ministers (GoMs) shall be constituted to examine the GST
rate structure on lotteries.
7. Revenue mobilisation for natural calamities:
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.
Observation:
i. Revenue mobilisation, for natural calamity, in the form of cess, appears to
have planned for the State, from the State itself where such calamity took
place.
Source: PIB
Disclaimer: The publications contain information solely for informational purpose. It
is not a guidance note and does not constitute any professional advice at all.
*FinTax*
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📥 fintax.ca@gmail.com
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