Arjun (Fictional Character): Krishna, The festival of Makar Sankranti has arrived. On occasion of the same, GST Council has made some recommendations, which are to be implemented from 01 April, 2019. So what would you like to tell about that?
Krishna (Fictional Character): Arjuna, Generally, on Makar Sankranti we say that "Til Gul ghya, god god bola". The government has already given the "Til Gul' to the small taxpayers. If we compare GST and kite flying, then the person who is flying kite is the Taxpayer , "kite" is GST, "Chakri" means books of accounts, 'jumbling in threads' means Returns, "Air" means Tax collection, 'Cutting of Kites' means Matching mis-matching, and "String" means Law. Currently in the month of January, there are lot of kite flying in GST. As while flying of kite, there is jumbling in threads. There was trouble to small taxpayers. Hence in GST Council meeting ease (Dheel) is given to small kites in GST.
Arjun: Krishna, how small taxpayers may escape from the 'katakati' (cutting of Kites) under GST ?
Krishna: Arjuna, 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. It means small taxpayers has escaped from the 'katakati' (cutting of Kites) under GST from 01 April, 2019. Thus different states may have different limits of exemption which will create 'Guntaagunti' of GST laws in India. So ‘One Nation, One Tax’, concept may get hampered.
Arjun: Krishna, Why there is jumbling for Small taxpayers and what type of Dheel is given to them?
Krishna: Arjuna, small taxpayers were required to file quarterly returns even though their turnover was less. The compliance cost was also higher. Because of that, small taxpayers were jumbling with compliance of the law. But now the limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Also now they would need to file one Annual Return but Payment of Taxes would remain Quarterly. Hence The compliance under Composition Scheme shall be simplified. Thus small kites i.e. composition dealer has been given 'Dheel' (ease).
Arjun: Krishna, Which is the new small kite in the GST 'Patangbaazi'?
Krishna: Arjuna, A New 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. So, this scheme would be new small Kite in the GST 'Patangbaazi'!
Arjun: Krishna, It is said that the Government is providing new Chakri to the taxpayers. Which is that?
Krishna: Arjuna, Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN. As the 'chakri' collects all the Manjaa (thread), similarly, this software means the 'chakri' of Government will account Data and will help in maintaining all the details of GST.
Arjun: What one should learn from GST 'patangbaaji'?
Krishna: Arjuna, Government has given the sweets of Makar Sankranti before it. Major decisions have taken to give relief to MSME (including Small Traders). Because of often changes in the provisions, tax consultants are in dilemma. They are very much confused that which kite of GST they should fly. Flying kite with string coated with glass has threat of cutting hand, there may be scratch on hand. Therefore, the taxpayers should follow the rules. They should not take the law in hands. Else they may get in trouble and hurt themselves.