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Changes in GST from 1 st April, 2019
The GST Council in its 32nd meeting held on 10th Jan 2019, had took following decision which are made effective from 1st April, 2019 by way of relevant notifications. The decision include
- Higher Exemption Threshold Limit for Supplier of Goods,
- GSTR 3B Return System further extended till June 2019,
- GSTR 1 Return System further extended till June 2019,
- Increase in Turnover Limit for Existing Composition Scheme,
- Composition Scheme for Services and Mix Supplies,
- Payment of self-assessed tax under Form GST PMT-08 and
- Simplified Return Forms
1) Higher Exemption Threshold Limit for Supplier of Goods:
It exempts person from obtaining registration and payment of tax who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Forty lakhs rupees. This benefit will not be applicable to person
- required to take compulsory registration,
- persons engaged in making supplies of goods such as ice cream and other edible ice, pan masala, tobacco and manufactured tobacco substitutes
- persons engaged in making intra state supplies in the State of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand.
- persons obtaining voluntary registration under Section 25(3).
2) GSTR 3B Return System further extended till June 2019:
It is specified that the return in FORM GSTR-3B of for each of the months from April, 2019 to June, 2019, shall be furnished electronically through the common portal, on or before the twentieth day of the month succeeding such month.
3) GSTR 1 Return System further extended till June 2019 :
It extends the time limit for furnishing the details of outward supplies in FORM GSTR-1 under the Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year, for each of the months from April, 2019 to June, 2019 till the eleventh day of the month succeeding such month.
Further, it hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year shall furnish the details of outward supply of goods or services or both in FORM GSTR-1 effected during quarter April-June 2019 till 31st July, 2019
4) Increase in Turnover Limit for Existing Composition Scheme:
An eligible registered person whose aggregate turnover in the preceding financial year did not exceed Rs. 1.50 crore may opt to pay tax under composition levy. In case of states that is Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand the turnvoer limit is 75 lakhs for opting composition levy for eligible registered person. Further, the registered person shall not be eligible to opt for composition levy under sub-section (1) of section 10 of the said Act if such person is a manufacturer of the goods that is ice cream and other edible ice, pan masala, tobacco and manufactured tobacco substitutes.
5) Composition Scheme for Services and Mix Supplies :
Notification no. 2/2019 Central Tax (Rate) dated 07.03.2019 has made available composition scheme for suppliers of services (or Mix suppliers) with a rate of 6% (3% CGST and 3% SGST) having first supplies of goods or services or both upto an aggregate turnover of fifty lakh rupees made on or after the 1st day of April in any financial year, by a registered person. This befit shall not be available to a person engaged in making interstate outward supply.
For the purposes of this notification, the expression “first supplies of goods or services or both” shall, for the purposes of determining eligibility of a person to pay tax under this notification, include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the said Act but for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act.
6) Payment of self-assessed tax under Form GST PMT-08 :
- The taxpayers need to make payment of tax on a monthly basis even though they have opted for quarterly filing of returns.
- Payment of tax shall be made by 20thof the month succeeding the month to which the liability pertains.
- Payment of tax shall be made for the first two months of the quarter.
- Credit of the tax paid during the first two months of the quarter shall be available at the time of filing the return for the quarter. While filing the quarterly return and feeding the output details and input details of the quarter the total tax calculated shall be reduced by the amount so deposited for the first two months of the quarter and the balance tax shall be payable.
7) Simplified Return Forms
The new Return Formats would make the compliance process simpler for the smallest of businesses wherein taxpayers up to a turnover of Rs. 5 Crore would have an option to file any of the three forms.
In an attempt to simplify Taxation for Small Taxpayers, the GST council decided upon implementation of new and simplified tax returns, namely,
Normal Return – FORM GST RET-1 (Shall be able to declare all types of outward supplies, inward supplies and take credit on missing invoices)
- Monthly Normal
- Quarterly Normal
Sahaj Return – FORM GST RET-2 (Quarterly)
Outward supply under B2C category and inward supplies attracting reverse charge only.
Sugam Return – FORM GST RET-3 (Quarterly)
Outward supply under B2C and B2B category and inward supplies attracting reverse charge only
These tax returns are being introduced to free the small taxpayers from the hassles of taxation, thereby helping them to focus on the growth of their business.