Changes in GST Act from 31 st Jan
In case of inward supply from unregistered suppliers RCM shall be applicable to the notified persons and notified supply of goods/ services. −9(4)
Currently there is no notification in this regard (so this RCM is still not applicable)
- Higher limit of turnover for composition scheme raised from Rs 1 Cr to Rs 1.5 Cr. – Section 10
- Composition dealers in goods allowed to supply services for a value not exceeding – Higher of 10% turnover or Rs 5 lacs, whichever is higher.
Taxpayers may opt for multiple registrations within a state/UT for different place of business having same PAN.
(Earlier it was possible only if we had different business vertical (diff business)
- Registration shall remain temporary suspended till completion of cancellation (No return to be filled).
Threshold limit of turnover for exemption for special category states – Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim, Uttarakhand increased to Rs 20, 00,000.
Registered person may issue consolidated credit or debit notes to a party in respect of multiple invoices issued in a financial year to that party.
(earlier separate debit note credit note for diff invoices)
- Change in blocked credit U/s 17(5)
- Change in definition of supply as specified in schedule III (Exclusion from Supply)
Mandatory registration is required only for those E- Commerce operator who is required to collect TCS
(earlier for all E-Commerce operators, registration was compulsory)
Key updates of 31st GST Council Meeting.
- GST Rates of 7 items reduced from 28% to 18% . Items include tyres, VCR, billiards & snookers and lithium batteries.
- GST Rate of 33 items have come down from 18% tax slab to 12% and 5% tax bracket as they are common man’s consumption goods. These items include Third Party insurance Vehicle and Solar Power Systems
- Only 34 items will be taxed at 18% GST Rate or more
All items except luxury goods would be taxed under 28% GST Rate
- The GST Council is also looking into introducing composition scheme for the real estate sector. A view on Real Estate sector will be taken in next GST Council meeting
- A composition Scheme will be framed for Small Service provider. Threshold and mechanism will be decided in next GST Council Meeting
- MSME Committee may re-consider the thresh hold limit of 20 Lakh for larger interest.
- Centralized authority for Advance ruling in case of conflicting views of Advance Ruling Authorities. The decision of Centralized authority will bind the whole country.
- New GST Refund filing system will be introduced on pilot basis with effect from 1st April 2018
- Addition GST fees waived for returns filed upto 31st March 2019
- GST Annual return due date has been extended to 30th June 2019
- ITC for last FY invoices allowed upto March 31, 2019
- New GST Return to be launched on trial basis from April 1, 2019 Next GST Council meeting will be held in January 2019
- Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.
- Due date for claiming ITC of FY 2017 18 Extended till March 2019
- Due date of furnishing GSTR8 for Oct to Dec 18 extended to 31.01.2019
- GST on Export of Services in case of Outsourcing of services
- Due date of FORM ITC 04 for the period July’17 to Dec’18 extended till 31.03.2019
UNIQUE COMMON ENROLLMENT FOR TRANSPORTER
A Transported registered in more than one state with same PAN No may apply for
Unique Common Enrollment No by submitting FORM ENR-02, provided he may not be able
to use old Good and Services Identification No.
Due Date for Gstr-6
Due Date for Gstr-6 From July 2017 to June 2018 has been Extended till 31st July 2018
LATE FOR GSTR-3B WAIVED IN SOME CASES
due date for each of the months from October,
2017 to April, 2018, for the class of registered persons whose declaration in FORM GST
TRAN-1 was submitted but not filed on the common portal on or before the 27th day of
Provided that such registered persons have filed the declaration in FORM GST
TRAN-1 on or before the 10th day of May, 2018 and the return in FORM GSTR-3B for each
of such months, on or before the 31st day of May, 2018.
NO REVERSE CHARGE ON UNREGISTERED DEALER TILL 30 SEPTEMBER
Earlier reverse charge on unregistered dealer was suspended till 31st March now extended till 30th September
E-WAY BILL FOR DELHI
E-way Bill are compulsory for intra state movement of in all states
However for delhi E Way bill is compulsory if amount is more than 100000(and not 50000)
Also it is compulsory only in case of B2B (and not B2C)
Note-For interstate sales,rules are same all over India
Different rules are only for intrastate in Delhi
GST Rate for Manufacturers also 1% in Composition Scheme
Government has changed GST Rates for Manufacturers from 2% to 1% vide Notification 1/2018
Hence, now GST Rates are similar for Traders and Manufacturers
Summary of Rates
Type of Business
TILL 31 DEC 2017
FROM 1 JAN 2018
E-Way Bill Compulsory from 1 Feb 2018
E-Way Bill needs to be generated for movement of goods 50000 or more
Transporter has to carry this E way bil while moving goods from one placed to another
This has to be generated either
Online at E Way bill website ewaybill.nic.in
This has been started in a trial manner from 16 Jan 2018 and will be compulsory from 1 Feb 2018
It will be mandatory from 1 April 2018
For details procedure refer
Due Dates of GST Returns Extended
1. Due dates for GSTR-1 for monthly tax payer
July - November, 2017
10th January, 2018
10th February, 2018
10th March, 2018
31st May, 2018
10th June, 2018
10th July, 2018
2. Due dates for GSTR-1 for quarterly tax payer
July - September, 2017
10th January, 2018
October - December, 2017
15th February, 2018
January - March, 2018
30th April, 2018
April - June, 2018
31st July, 2018
3. Due Dates for Other GST Returns Extended
Non Resident Taxable Person
31 Jan 2018
Online information and database access or retrieval services
31 Jan 2018
FORM GST ITC 01
Taking GST Credit in Case of Existing Stock in Hand(Fresh Registration, Conversion of composition into Regular Scheme)
31 Jan 2018
Reduction in Late fees for GST Return of Composition Dealer
Late fees for late filing of return for Composition Dealer has been made same as Regular Dealer
Late fees is as follows
In case No Tax Payable
20 per day
In Case Tax Payable
50 per day
Late fees Is to be divided equally into CGST and SGST
Even if IGST is payable, still for late fees we have to pay CGST and SGST(and not IGST)
No GST on Advance Received in Case of Goods
As per Time of Supply of Goods
Gst is payable on earlier of Invoice
Last Date of Invoice
Date of Payment
Hence,if payment received in advance,GST was payable on advance received
This condition has been removed now from 15 Nov 2017 vide Notification 66/2017
Hence,if advance received by Trader or Manufacturer,but goods not yet sold,now no GST is payable
However,receipt voucher is still to be issued by Trader/Manufacturer on receipt of advance(even though no tax is to be paid to govt)
This concession is only for goods,not servicesHence GST is payable if advance received by Service Provider
In case of Reverse Charge,if payment made in advance,still reverse charge is applicable for both gods and services.
GST has had other changes. See GST Changes on the 10 November Meeting
Download in PDF
Changes Made in GST Council Meeting 6 Oct 2017View
Registration Limit in GST is 20 lacs for Both Local and Interstate Sales
If a Person has turnover upto 20 lacs, they are not required to take registration
However if person is making interstate sales of even 1 Rupee, Compulsory Registration Required
If turnover is upto 20 lacs of Local + Interstate combined, then Registration Not Required
File Quarterly GST Returns 1, 2, 3
Normal Registered Dealer had to file Monthly GST Returns 1,2,3
If turnover is upto 1.5 Crores, then Quarterly Returns Required from Oct-Dec
However GSTR3B to be filed for Oct, Nov, Dec
Composition Dealer Turnover Limit Raised
If turnover was upto 75 Lacs, then Person can Opt for Composition Scheme
If turnover upto 100 lacs, then Composition Scheme can be availed
Option to Avail Composition Scheme
Person can opt for Composition Scheme till 31 March 2018
Suppose scheme opted in one month will be effective from Next Month
Normal Dealer opts for Composition Scheme by 20 Nov 2017
He will file Composition Dealer Return and Tax starting from 1 Dec 2017
Reverse Charge to Unregistered Dealer suspended till 31-3-2018
Reverse Charge on purchases From Unregistered Dealer has been abolished till 31 March 2018.
Other Reverse Charge are still Applicable. like reverse charge on advocate and Good Transport Agency
However, what will happen to Reverse Charge already deposited is still not clear
Whether we can claim input of the same after payment or will it be refunded to us
No GST on Advance Received for Small Business
Suppose I receive money in advance in July
Sales made for the same in September
Tax on it was calculated in July Return to be paid by 20 Aug
For small business(upto 1.5 crores)
Tax on it will be calculated in September Return to be paid by 20 Oct
This 1.5 Crores limit is of current year or last year is still not clear
GTA Service To Unregistered Person Exempted
Earlier If Goods Transport Agency (GTA) provided services to Unregistered Persons, they had to pay GST
Because of this GTA were not willing to supply services to Unregistered persons.
This service has been exempted.
Concept of E-Way Bill to be Introduced in Staggered Manner starting from 1 Jan 2018
There will be different dates for its launch in different states
In Whole of India,it will be launched by 1 April 2018
TDS TCS IN GST
TDS TCS in GST will also be differed to 1 April 2018
Due Dates for GST Returns has been changed as follows
For Input Service Distributor
GST Return for July, Aug, Sep to be filed by 15 Nov 2017
For Composition Dealer
GST Return for July - Sep Quarter to be filed by 15 Nov 2017
- For Input Service Distributor
Changes in Invoice Rules
For Certain Registered Persons, Invoice Rules will be changed
The details of same are still not been notified
Download Recent Changes in GST in PDF Format
Changes in Council meeting in 10th Jan
GST Council also approved levy of cess on intra State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.
The limit of annual turnover in the preceding financial year for availing composition scheme for goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the composition limit in their respective States.
Taxpayers under composition scheme will now need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration)
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. However, the threshold for registration for service providers would continue to be Rs 20 lakhs and in case of Special category States Rs 10 lakh
A 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 preceding financial year upto Rs 50 lakhs. The said scheme shall also 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.
Following matters were referred to Group of Ministers
i) Proposal of giving a composition scheme to boost the residential segment of the real estate sector.
ii) GST rate structure on lotteries.
- Changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, notifications and Circulars issued earlier and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.