GST Council kick-started 2019 with various relaxations in its first meeting of the year ‘32nd Council meet’ held on 10th January 2018. This came as a gift to small taxpayers as well as MSMEs which were waiting for various simplifications as mentioned in the conclusion of 31st meeting. Certain reliefs w.r.t compliance were also discussed in 31st Council meet held in late December 2018.
A list of reliefs granted in 31st meeting and have been subsequently notified formally by the government are as follows:
1. Waiver of Late Fee: Council waived off crores of revenue due to CBIC in the form of late fee keeping in mind the . In many cases late filing was due to technical glitches and flaw in the system, so government thought it proper to provide the relief. Late fees waived off for all taxpayers for July 2017 to Sep 2018 in case of :
- FORM GSTR 1
- FORM GSTR 3B
- FORM GSTR 4
- No late fee would be levied if returns are furnished after 22nd Dec 2018 but on or before 31st Mar 2018.
TheTaxTellers’ thought: This entices a feeling of injustice among honest tax payer who filed income or late with have late fee. We hope govt. would give back late fees paid by such tax payer.
2. Extension in last date for aviling Input Tax Credit (ITC) FOR F.Y. 2017-18: ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.
3. Single Cash Ledger: The modalities for implementation of single cash ledger would be finalised in consultation with GSTN and the Accounting authorities.
TheTaxTellers’ thought: This was one of the much needed improvement as there would be now a single cash ledger for each tax head.
4. Extension in Due Dates:
- For filing Annual Returns: The due date for furnishing annual return in FORM GSTR 9, FORM GSTR 9A and FORM 9C for F.Y.17-18 has been further extended till 30th Jun 2019.
- GSTR 8: Due date for furnishing FORM GSTR 8 by E-Commerce vendors for Oct 18 to Dec 18 extended till 31st Jan 2019.
- GST ITC-04: The due date for furnishing FORM GST ITC-04 (Job-Work) for Jul 17 to Dec 18 shall be extended till 31st Mar 2019.
TheTaxTellers’ thought: GST Council has been regularly extending due dates which benefit some ge wine as well wilful defaulters too. This may create a sense of unreliability over compliances among taxpayers. Too much delay in filing annual returns can create thrust among recessional too regarding the purpose of such compliances.
5.Single Authority to disburse refunds:
A welcome recommendation for scheme of a single authority for disbursement of the refunds by either the Centre or the State tax authorities would be implemented on pilot basis. The modalities for the same shall be finalized shortly.
MAJOR RELIEFS GRANTED UNDER 32nd GST COUNCIL:
The decision taken with respect to GST turnover limit and composition scheme (point 1 and 2 below) would be effective from 1st April 2019.
1.Higher Exemption Threshold limit for Supplier Of Goods: Council has doubled the exemption limit under GST regime. Exemption limit has been raised to Rs 40 lakh from the earlier cap of Rs 20 lakh. Also, the exemption limit for small states has also been increased to Rs 20 lakh from Rs 10 lakh.
However, the states will have the discretion to opt up or opt down the exemption limit. They will have to inform the Secretariat within a week if they wish changes in their exemption limit.
No change in limit is applicable for Service Providers.
TheTaxTellers’ thought:
(A) This may bring in certain practical issues when an organisation registered in more than one state and each state has different exemption limits. Necessary amendments need to be carried out in CGST Act which provides for a limit of Rs.20 lacs would require necessary amendments.
(B) A taxpayer selling services as well as goods will have to be registered from Rs. 20 lakhs which may be a drawback of separate limits.
2.New COMPOSITION SCHEME for Service Providers: Suppliers rendering either independent services or a mixed supply of goods & services with a turnover of up to Rs 50 lakhs p.a. in the preceding financial year can opt for this scheme. The GST rate is fixed at 6% (3% CGST +3% SGST).
Also, they would be liable to file one Annual Return with Quarterly Payment of Taxes (along with a Simple Declaration).
TheTaxTellers’ thought: Rate of 6% would be much higher than that of 1% in case of goods. This would benefit only those service providers who are unable to take any benefit of ITC.
Other Matters examined:
- Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
- Matters referred to Group of Ministers:
(A) A 7 member Group of Ministers shall be constituted to examine the proposal of giving a Composition Scheme to Boost the Residential Segment of the Real Estate Sector.
(B) A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
- Revenue Mobilization for Natural Calamities: GST Council approved Levy of Cess @1% 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.
We hope you found the above article useful and helpful. Please write to us at info@taxtellers.com in case of any queries on above. For any services and advisory, please visit: www.taxtellers.com.
Sincerely,
TheTaxTellers Team
