|AKGVG GST Updates
|Greetings for the day!!!
We are pleased to share AKGVG's Weekly Insight, dated 11 January, 2019 which includes:
|Gist of 32nd GST council meeting
The new year bonanza still continues for the taxpayers as GST council has come up with major decisions to give relief to MSME (including Small Traders). The major decisions taken by the GST Council in its 32nd Meeting held 0n 10.01.2019 has been sum up as under:
- 1. Approval to amendments :
Changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, notifications and Circulars issued earlier and the Corresponding Changes in SGST Acts would be notified w.e.f. 01.02.2019.
- 2. Higher Exemption Threshold Limit for Supplier of Goods:
There would be two Threshold Limits for exemption from Registration and Payment of GST for the suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. states would have an option to decide about one of the limits within a weeks’ time. The threshold for registration for service providers would continue to be Rs 20 lakhs and in case of Special Category States at Rs 10 lakhs.
Effective dates: The decisions shall be made operational from the 1st of April, 2019.
- 3. Composition Scheme :
3.1 Increase in Turnover Limit for the existing Composition Scheme for goods: The limit of annual turnover in the preceding financial year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States.
- 3.2 Composition Scheme for Services: A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to Rs 50 lakhs.
- The said Scheme Shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods.
- Compliance Simplification : The compliance under Composition Scheme shall be simplified as now they would need to file one Annual Return but Payment of Taxes would remain Quarterly (along with a simple declaration).
- Effective dates : The decisions shall be made operational from the 1st of April, 2019.
- 4. Free Accounting and Billing Software :
GSTN shall provide free accounting and billing software to Small Taxpayers.
- 5. Matters referred to Group of Ministers :
- A seven 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.
- A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
- 6. Revenue Mobilization 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.
| We trust you will find this Journal informative as well as useful.
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Disclaimer: The entire contents of this Journal have been prepared on the basis of relevant provisions and information existing at the time of preparation. The observations of the author are personal view and the author does not take any responsibility of the same and this cannot be quoted without the written consent of the author.
Knowledge Updates Team
AKGVG & Associates
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