Goods and Services Tax (GST) was first announced in the year 2000. 1st July 2017 marks the date of its implementation. GST, since the time it came to force, is undergoing multiple iterations.
Some of the latest GST news is stated below:
- Composition Scheme changes
- Limit to be raised to INR 1.5 crore. It can be increased to INR 2 crore at a later stage.
- 1% composition tax on turnover of goods and services that are taxable
- Composition Scheme eligibility – Suppliers of goods and services, wherein the services do not exceed INR 5 lakh
- Due date for composition returns and GSTR-4 is postponed to 24th December
- Inter-state sale is not allowed under the composition scheme as input tax benefit won’t be provided
- GSTR compliance
- March 2018 is the deadline for filing GSTR-1 and GSTR-3B
- Businesses having turnover below INR 1.5 crore need to file quarterly GSTR-1
- Businesses having turnover above INR 1.5 crore need to file monthly GSTR-1
- GSTR-3B – Businesses have to file this for the period from July 2017 – March 2018, on a monthly basis, on or before the 20th of the next month
- Service providers
All service providers with a turnover of up to INR 20 lakh have been exempted from GST registration. These include those businesses, which supply inter-state goods. This is the most important GST news update for service providers.
- Relief measures
- The late fee has been reduced to INR 20 per day from INR 200 per day for NIL return filing
- GSTR-3B late fees for the month of July, August, and September have been waived off. If the businesses have already paid the fees, it would be refunded back under ‘Tax’ in the Electronic Cash Ledger and can be used to pay GST
- Export services for Bhutan and Nepal have been exempted from GST. Refund can be claimed on the same.
- 31st December is the new date for revision of TRAN-1.
- GST rate changes
- For manufacturers and traders, the composition rate is 1%
- Shampoo, watches, tiles, and perfume now fall under 18% tax bracket from 28% with effect from 15th November 2017
- GST rate for wet grinders and tanks is reduced from 28% to 12%
- Condensed milk, diabetic food, and refined sugar reduced to 12% tax bracket from 18%
- Desiccated coconut, coir products, and idli dosa batter to fall under the 5% tax bracket, in comparison to the earlier GST rate of 12%
- Duar meal, dried vegetables, and khandsari sugar to fall under 0% tax bracket from the earlier bracket of 5%
The above mentioned is the latest GST information provided by the GST Council. It is expected that more changes would follow when the council would meet again. These changes are done keeping in mind the interest of the businesses and the common man.