Recommendations made during 32nd GST Council meeting
GST council meet in New Delhi for their 32nd meeting of the council. This meeting was chaired by Mr. Arun Jaitley ji , Union Finance Minister. Later he tweeted that today’s meeting accorded massive relief to MSME Sector.
Summary of decisions is as follows:
1. Increase in Turnover Limit for the existing Composition Scheme
1.1. The limit of Annual Turnover in the preceding F/y for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore.
1.2. Special category States would decide, within one week, about the Composition Limit in their respective States.
2. Compliance Simplification
2.1. Dealers under Composition Scheme would need to file one Annual Return but Payment of Taxes would remain Quarterly.
2.2. But along with payment of tax a simple declaration would be required to be filed.
3. Higher Exemption Threshold Limit for Supplier of Goods
3.1. 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.
3.1.1. Power to States: States would have an option to decide about one of the limits within a weeks’ time.
3.1.2. Team GSTpanacea Note: What we understand is that now States are free to choose any limit of Rs. 20/40 Lakhs and they have to decide within 1 week time.
4. Same Threshold Limit for Supplier of Services
4.1. No change in threshold limit for Service Provider.
4.2. The Threshold for Registration for Service Providers would continue to be Rs 20 lakhs and in case of Special Category States at Rs 10 lakhs.
5. Composition Scheme for Services
5.1. A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers).
5.2. Annual Turnover* in the preceding Financial Year up to Rs 50 lakhs.
5.3. Tax Rate of 6% (3% CGST +3% SGST).
5.3.1. Team GSTpanacea Note: As rates are prescribed wrt CSGT & SGST detail notification & scheme should be read thoroughly as with plain reading of press release it gives impression that composition service provider might be allowed only for intra-state supplies!
5.4. “`Filing of Return & tax payments for these dealers would be same as discussed above in point no. 2.“`
6. Effective Date: All decisions mentioned above would be operational wef 1st April’2019.
7. Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
8. Kerala Natural Calamity Cess Revenue Mobilization for Natural Calamities: GST Council 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.
9. Matters referred to Group of Ministers:
9.1. A seven Member Group of Ministers shall be constituted to examine the proposal of giving a Composition Scheme to Boost the Residential Segment of the Real Estate Sector.
9.2. A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.
10. Examination for GST Practitioners
10.1. The Last Date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who were sales tax practitioner or tax return preparer under Old IDT Laws (Sec 83(1)(b)).
11. 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