BENEFITS OF THE GOODS AND SERVICES TAX (GST)
- 17 types of indirect taxes have been merged in to one tax i.e Goods And Service Tax.
- Online Registration of dealer is done maximum within 3 days under GST.
- One nation one tax i.e. single rate is charged on same item in whole country. Previously there were different rates of tax in different states on same material.
- Simplification of GST Return is also made. Currently GSTR-1 and GSTR-3B are to be submitted online on monthly basis.
- There is no hurdle of checking on check posts on borders. Therefore, the quick movement of goods is made. Because of it lot of time and cost is saved.
- Previously, there was no input benefit of Central Sales Tax but now, Inter-state GST is eligible for input of tax credit.
- Central Government is thinking to bring petrol and diesel under GST after consulting with States. Currently petrol and diesel are covered under VAT and all States have their own rate of VAT on petrol and diesel.
- The central government has proposed to allow Input Tax Credit on certain genuine transactions. For example :- Supply of foods and beverages to employees, health services, hiring of motor vehicles, outsourced creche provided to working momen employees under the Materininity Benefit Act. Earlier no Input Tax Credit was not allowed on these transactions.
- According to new proposal, E-commerce companies are also to be liable for registration under GST law if their gross turnover less than Rs. Twenty Lakh in a financial year.
The Recommendations of 28th GST Council Meeting Held on 21.07.2018
I have already given the details of the outcome of 28th Council meeting held on 21.07.18 in the respective head of GST. There are some other general recommendations which are described as follows:-
- Certain supplies like supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering in to India, High sea supplies etc.
- Input Tax Credit will be allowed in case of Motor vehicles for transportation of money by a banking or financial company, motor vehicle having capacity of 13 persons including driver, vessels, aircrafts, maximum transactions in Schedule III, Services of general insurance, repair & maintenance of vehicles, aircrafts, vessels.
- If any recipient does not pay the due amount of invoice to the seller within 180 days and avails the input tax credit then the credit availed by the recipient will be reversed.
- Consolidate Debit Note or Credit Note can be given by the dealer in respect of multiple invoices issued during a financial year.
- The pre-deposit amount for making the appeal with Appellate Authority and Appellate Tribunal to be capped at Rs.25 Crores and Rs. 50 Crores respectively.
- Commissioner is empowered to extend the time limit for return of input up to one year.
- Commissioner is empowered to extend the time limit for return of capital send on job work up to period of two years.
The Recommendations of 31st GST Council Meeting Held on 22.12.2018
- GST rates on 27 items have been reduced.
- GST on some more items will be reduced in next meeting to be held in January,2019.
- Now, only 278 items are in 28% GST Bracket. These Item include the Cement also which is used by common people also.
- There is an indication that the simple rules shall be made for small and middle scale industries and small service providers.
32nd GST Council Meeting Held on 10.01.2019
Following decision taken by GST Council Meeting held on 10.01.2019:-
- With effect from financial year 01.04.2019 threshold limit for registration under GST will be increased to 40 lakhs from 20 lakh. However, every individual state is free to take decision in respect of threshold limit in their state within a week.. There is no change for registration for service providers. It will remain Rs.20 lakh and 10 lakh in case of special catagory states.
- COMPOSITION SCHEME
- Limit of turnover under composition scheme is increased from one crore to 1.50 crore with effect from financial year 01.04.2019. Special category states can decide the limit of turnover under composition scheme within one week.
- Service providers having their turnover less than 50 lakh are also eligible under composition scheme. Under composition scheme they have to pay 6% GST (3% CGST +3% SGST) on turnover. Under composition scheme,no claim of input tax credit is allowed
- Persons registered under composition scheme were previously supposed to file GSTR-4, return every quarterly. Now, they have file only one yearly return. However, they are supposed to deposit tax quarterly.
- The Government has also decided to provide free accounting software to small taxpayers so that all GST compliance can be made easier.
- A levy of GST Cess @ of 1% is approved for Kerala State on intra-state supplies for 2 years. The cess will be utilized for supporting the natural calamity.
- The GST Council also decided to form a 7 member of group of ministers to examine the proposal of giving a composition scheme to boost the residential segment of the real estate sector.
HIGHLIGHT OF 33rd GST Council Meeting Held on 24.02.2019
- The GST rates on under construction on property in normal catagory have been reduced from 12% to 5% with effect from 01.04.2019.
- GST rates on affordable housing are reduced from 8% to 1%.
- Affordable housing in metro cities will include properties with a carpet area up to 60 square meters and cost up to Rs.45 lakh. These cities include Delhi NCR region, Mumbai MMR region, Kolkata, Chennai, Hyderabad and bangaluru.
- Affordable housing for cities other than metro cities will include properties with a carpet area up to 90 square meters and cost up to Rs.45 lakkh.
- New rates of GST will be applicable form 01.04.2019.
- No Input Tax Credit will be allowed to developers.
- The matter related to the GST rates on Lotteries will be discussed in next council meeting.
CHANGES MADE IN UNION BUDGET FOR FINANCIAL YEAR 2019-20
Following proposal have been made by Finance Minister in respect of change in GST for financial year 2019-20:-
- Small and medium enterprises, registered under GST, will get a rebate of 2% on interest on excremental loan of Rs. one crore.
- All businessmen, registered under GST and having their turnover less than 5 crore, will be allowed to submit GST returns on quarterly basis.
- A simplified single monthly return will introduced for GST payers..
- To prefill the taxpayer return, electronic invoice system will be introduced from January’2020 for GST payers.
- Separate e-way bill will not be required for GST payers.
- Multiple tax ledgers for GST payers will be replaced by one ledger.
- Implementation of GST refund module will be done.
- Rate of GST is reduced from 12% to 5% on electric vehicles.
HIGHLIGHT OF 36th GST Council Meeting Held on 27.07.2019
- With effect from 01.08.19, the rates of GST on electric vehicles are reduced from 12% to 5%.
- Electric charging station now will charge GST @ 5% in place of present GST rates @ 18%
- No GST will be charged on electric buses hired by local authorities.
- Date of adoption of composition scheme by service provider is increased to 30.09.19
HIGHLIGHT OF 37th GST Council Meeting Held on 20.09.2019
According to the 37th meeting of GST Council, held on 20.09.19, the following recommendations were made in respect of return filing:-
- New return filing system will be from April’2020
- GSTR-9 for financial year 2017-18 and financial year 2018-19 is optional for the person having turnover up to Rs.2 crore.
- No need to filing of GSTR-9A for financial year 2017-18 and financial year 2018-19.
According to the 37th GST Council meeting held on 20.09.2019, The GST rates are changed for the following items with effect from 01.10.2019 :-
- Room rent in Hotels :- 12%, if the rent is Rs.1000/= to Rs.7500/= per night. 18% if the rent is more than Rs.7500/=. No GST on room rent below Rs.1000/= per night
- Polyethylene Bags:- Single rate @ 12% on woven or non-woven Polyethylene Bags.
- Caffeinated Beverages:- GST rate has been increased to 28% plus additional cess @ 12% from current rate of 18%.
- Outdoor Catering:- GST rate reduced from 18% to 5%.
- Cup Plates Made From Leaves and Hides:- No GST is to be paid now.
- Railway Wagon and Coaches:- GST is increased from 05% to 12%.
- Polypropylene Bags and Sacks Used for Packing of Goods:- Single rate of GST @ 12%.
- Almond Milk:- New GST rate is 18%.
- Slide Fastener:- GST rate is reduced from 18% to 12%.
- Marine Fuel :- GST is reduced from 18% to 5%.
- Wet Grinders of Stone:- GST is reduced from 12% to 5%.
- Dried Tamarind :- Now exempted from GST
- Job Work In Diamond Industry:- GST is reduced from 5% to 1.5%.
- Cutting and Polishing of Gems and Jewellery:- GST is reduced from 3% to 0.25%.
- Vehicles:- Cess is reduce to 12% on 1200 cc petrol vehicle and 1500 cc diesel vehicles having a capacity to carry up to 13vehicles.
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