Major Changes in GST – GST Council meeting dated 21st July 2018


Major Changes in GST

GST Council meeting dated 21st July 2018

Changes are as follows:

  1. The limit to opt in composition scheme have been raised upto Rs 1.5 crores from Rs.1 crore.
  2. Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
  3. The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.
  4. Small Taxpayers having turnover below 5 crore would have an option to file quarterly returns but payment needs to be made on monthly basis.
  5. Nil Return filers would be given facility to file return by sending SMS.
  6. The requirement to pay tax under reverse charge mechanism for purchases made from unregistered person have been suspended till 09.2019.
  7. Earlier if payment is not made to the supplier within 180 days, credit availed needs to be reversed along with payment of interest but now no interest needs to be paid for the same.
  8. ITC in relation food and beverages, health services, travel benefits to employees etc. was not allowed but now the ITC can be claimed if providing such goods/services to employees is obligatory for the employer under any other law.
  9. Input Tax Credit in relation to Passenger Vehicle having a seating capacity of more than 13, used for other than Personal purpose would be allowed
  10. Repairs and maintenance of Passenger Vehicle of which ITC is available would also be allowed.
  11. Input Tax Credit in relation to motor vehicles for transportation of money for or by a banking company or financial institution would be allowed
  12. Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
  13. The taxpayer can now issue single debit/credit note against multiple invoices there is no need to link the notes to individual invoices.
  14. The order of cross-utilization of input tax credit is being rationalized.