Important changes announced in 22nd GST council meetadmin
The GST Council, in its 22nd meeting held at New Delhi on 6th October 2017, has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses:
A.Flexibility in eligibility to composition scheme
1.Increase in turnover limit
The turnover limit for eligibility of opting composition scheme has been increased from present Rs. 75 lakhs to Rs 1 crore and for special category states, it has been increased from Rs 50 lakhs to 75 lakhs. The increase in the turnover threshold will make it possible for greater number of taxpayers to avail the benefit of easier compliance under the composition scheme.
2.Composition scheme open to providers of exempt services
Earlier persons who were otherwise eligible for composition scheme but were providing any exempt service (such
as extending deposits to banks for which interest is being received) were being considered ineligible for composition scheme. Now, such persons who are otherwise eligible for availing the composition scheme and are providing any exempt service, shall be eligible for the composition scheme.
B.Relaxation in compliance by small businesses
1.Filing quarterly returns
Earlier every business was required to file monthly GST returns. Now, small and medium businesses with annual
aggregate turnover up to Rs. 1.5 crores shall be required to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis, starting from the third quarter of this financial year i.e. October-December, 2017.
2. Relaxation to interstate service providers
Presently, anyone making inter-state taxable supplies, is compulsorily required to register, irrespective of turnover. It has now been decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lacs (Rs. 10 lacs in special category states) from obtaining registration even if they are making inter-State taxable supplies of services. This measure is expected to significantly reduce the compliance cost of small service providers.
3. Reverse charge mechanism postponed
The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 is suspended till 31.03.2018 and will be reviewed by a committee of experts. This will benefit small businesses and substantially reduce compliance costs.
4. Relaxation in payment of GST on receipt of advance
Taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such supplies shall be payable only when the supply of goods is made.
5. Relaxation in GTA services
The services provided by a GTA to an unregistered person is exempted from GST.
C. Other procedural relaxation
1. The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018. This is in order to give trade and industry more time to acclimatize itself with the GST regime.
2. The last date for filing the return in FORM GSTR-4 by a taxpayer under composition scheme for the quarter July-September, 2017 is extended to 15.11.2017.