Arjuna (Fictional Character): Krishna, the 22nd meeting of the GST council was held on 06th October. So in this way we can say that small taxpayers have got their Diwali gift in advance. Tell us something about that.
Krishna (Fictional Character): Arjuna, The Prime Minister said that the small taxpayers have received the Diwali gift in advance. The 22nd meeting of the GST Council was held after taking into consideration small and medium taxpayers and exporters. But it is to be noted that these are only recommendations and will be applicable only after the notification is published in the official gazette of India.
Arjuna: Krishna, what decisions were taken by the GST Council in yesterday's meeting?
Krishna: Arjuna, GST council has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses:
- The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore as compared to the current turnover threshold of Rs. 75 lacs. Also the taxpayers are now allowed to make interstate supply under the composition scheme.
- If purchases are made from unregistered person then as per the reverse charge the buyer needs to pay tax on that purchase. The concept of reverse charge would be made applicable from 31st March, 2018. So we can say that, these crackers will burst afterwards.
- The concept of Quarterly return is introduced from the Month of October for the taxpayers having annual turnover of less than Rs. 1.5 Crore.
- The concept of e-wallet will start from the month of April of the next year for the exporters. Early Refund on the export will be received from 10th October.
- If the value of supply of services is less than Rs. 20 Lakh and supplier is making interstate supply then it is not necessary to take registration under GST. The small service providers will be benefitted due to this.
- The provisions of e-way bill would be made applicable from April 2018.
- The rate of GST on 27 goods and services is reduced.
- Registration and applicability of TDS and TCS are postponed upto 31st march 2018.
- Sale or supply of vehicles by a registered person, who had procured the vehicle prior to 1st July 2017, would be taxed at 65% of the (applicable GST + Cess rate). This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017.
Arjuna: Krishna, what lesson the taxpayer should take from this?
Krishna: Arjuna, It feels that Diwali is coming earlier due to changes in the GST rules. As the wish of kids relating to the crackers is completed by giving them the crackers, similarly, the sparklers are given to the small taxpayers in this Diwali. But if the provisions of GST are not complied with then the bomb of GST will burst. It is said that crackers should not be taken in hand because they can burst and hands can burn. Similarly, the law should not be taken in hands because they can make higher loss.