GST (Goods and Service Tax) has been made even simpler after the 22nd GST council meeting took place on 6th October 2017, as it has choose to reduce the burden of compliance on small and medium businesses.
Lesser Burden of Compliance for Small Businesses
Small and medium entities with annual turnover up to 1.5 crores have been facilitated in these changes as now they can make payments and file returns quarterly in Form GSTR 1, 2 and 3 and pay taxes only on a quarterly basis. The due dates for filing the returns will be announced soon.
Also small businesses will have to file monthly returns for 3 months July, August and September in a row and the switch will start from October 1st.
Relief for Service Providers
If a service provider’s annual turnover is less than Rs. 20 lacs they are exempted from registration. However the limit is different for a special category state such as J and K which is Rs. 10 lacs.
Services provided by GTA (Goods Transport Agency) to an unregistered person are also exempted from GST
TDS (Tax Deduction at Source) or TCS (Tax Collected at Source) provisions are also postponed till 31st march, 2018.
Relief for Exporters
A change in GST has made it convenient for the exporters to function. As every exporter will get an e – wallet . And in that wallet there will be an estimated amount for credit. The refund they will eventually get will be offset from that amount. The e – wallet will come into being from April 2018 onward.
For July exports refund will be processed by October 10. And for August exports refund dates has been fixed by October 18 onward.
Merchant exporters will pay a nominal 0.1 % GST applicable on exports to enable their suppliers to claim ITC.
Composition Scheme Changes
In Composition Scheme small tax payers can get rid of tedious GST GST formalities and pay GST at a fixed rate of turnover, which in turns becomes easy and simple for the tax payers.
Tax payers who are otherwise eligible for availing the composition scheme and are providing any exempt services will now be eligible for the composition scheme.
Eligibility of composition scheme has now been raised to Rs. 1 crore.
Now under the composition scheme traders will pay 1%, manufacturers will pay 2% and restaurants will pay 5%.
RCM (Reverse Charge Mechanism) will be suspended till 31st March 2018.
No GST on advance receipts for businesses with turnover under Rs 1.5 cr
At the time of receipt on account of advances of supply of goods, Taxpayers having annual turnover up to 1.5 Crore are not required to pay GST
Important Rate changes
Earlier unbranded Ayurvedic medicines used to fall in 12% tax bracket rate, now it has been changed to 5% tax bracket rate.
Man – made yarn was standing on a 18% tax bracket, however after the changes it has been reduced to 12% tax bracket rate. The eminent economists are predicting that it will have an effect on textiles.
Some of the stationery items, diesel engine parts were on a higher tax bracket i.e. 28% tax rate, after the changes they have been reduced to 18% tax bracket rate.
GST on khakra and unbranded namkeen has been reduced from 12 % to 5 %. Tax on zari work has been reduced from 12 % to 5 %.
35 % abatement on old leasing contract of vehicles has been decided.
Printing Job work rate revised from 12 %to 5 %.
Change will provide some relief for the jewellers as now it does not require providing a PAN card for the purchase of jewellery more than Rs. 50, 000. The amount of jewellery purchase for which KYC will be required will be determined later.
On the changes Prime Minister Shri Narendra Modi stated that
The next date of the council meeting has been fixed on 9th to 10th November this year at Guwahati.