GST Course

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Relief for Small and Medium Enterprises:

• It has now been decided to exempt those service providers making inter-state taxable supplies, except inter-State job worker whose annual aggregate turnover is less than Rs. 20 lakhs (10 lakhs for specific states) {which was compulsory before}

• It has been decided To facilitate the ease of payment and return filing for small and medium businesses with annual aggregate turnover up to Rs. 1.5 crores, such taxpayers shall be required to file quarterly returns in FORM GSTR-1,2 & 3 and pay taxes only on a quarterly basis

• The registered buyers from such small taxpayers (turnover less than 1.5 crores) would be eligible to avail ITC on a monthly basis. (Meanwhile, all taxpayers will be required to file FORM GSTR-3B on a monthly basis till December, 2017. All taxpayers are also required to file FORM GSTR-1, 2 & 3 for the months of July, August and September, 2017)

Reverse charge mechanism :

• The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 shall be suspended till 31.03.2018 (Reverse charge for purchases from unregistered dealer)

• This will benefit small businesses and substantially reduce compliance costs.

Composition Scheme:

• The composition scheme shall be made available to taxpayers having annual aggregate turnover of up to Rs. 1 crore (75 Lakhs for specific states) as compared to the current turnover threshold of Rs. 75 lakhs (50 lakhs for specific states)

• The facility of availing composition under the increased threshold shall be available to both migrated and new taxpayers up to 31.03.2018

• New entrants to this scheme shall have to file the return in FORM GSTR-4 only for that portion of the quarter from when the scheme becomes operational and shall file returns as a normal taxpayer for the preceding tax period

• Persons who are providing any exempt service (such as extending deposits to banks for which interest is being received) also eligible for availing the composition scheme {which was ineligible before}

GST on advances:

• It has been decided that 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.

GTA Services: The services provided by a GTA to an unregistered person shall be exempted from GST.

Other miscellaneous:

• Registration and operationalization of TDS/TCS provisions shall be postponed till 31.03.2018.

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.

• The last date for filing the return in FORM GSTR-4 by a taxpayer under composition scheme for the quarter July-September, 2017 shall be extended to 15.11.2017.

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Category GST, Other Articles by - CA Maheshwar Reddy