GST return filing process
- Small taxpayers with less than INR 5 crores of turnover can opt to file GST return quarterly against earlier limit of INR 1.5 crores. Quarterly return filing will be similar to the monthly return. However, tax payment would still be monthly, through a challan. Only small taxpayers making B2C supply or making B2B and B2C supply can enroll for quarterly GST return filing. Small taxpayers involved in only B2B supply cannot file quarterly returns under this scheme.
- Two simplified returns have been designed- “Sugam” and “Sahaj”, where in the first one, report only B2C supplies and the other report both B2B & B2C supplies, respectively.
- The returns that have to be filed monthly, has also been simplified. The new return is simple with two main tables. One for reporting outward supplies and one for reporting inward supplies for availing input tax credit. The process would be based on Invoice “UPLOAD – LOCK – PAY TAX” for most tax payers.
- A new facility is proposed by the GSTN wherein NIL return filers (no purchase and no sale) can file Return by just sending an SMS.
- Limit not exceeding 10% of the turnover of services rendered in the preceding financial year, or INR 5 lakhs, whichever is higher shall be fixed for opting into the composite scheme. Restaurant services are not be considered for this measure.
- Threshold limit for opting for composition scheme to be raised to INR 1 crore from existing INR 1.5 crore.
- Taxpayers may opt for multiple registrations within a State / Union territory in respect of multiple places of business located within the same State / Union territory. Earlier it was restricted to multiple businesses in the separate States.
- Now it becomes mandatory to register under GST for those E-commerce operators who are required to collect tax at source.
- The threshold exemption limit for GST registration increased to INR 20 lakhs from INR 10 lakhs for 6 States -Taxpayers operating in Sikkim, Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Assam & Meghalaya.
- Registration to remain temporarily suspended for the time cancellation of registration is under process, so that the taxpayer is relieved of continued compliance burden under the law.
Reverse charge mechanism
- An amendment is proposed to levy GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons.
E-way bills compliance
- As the RFID readers or tags will be introduced with Goods and Services Tax Network (GSTN) for transporters in the next 6 months, this is supposed to relieve the transporters from wait at check posts.
- Standard operating procedure to be adopted to reduce harassment of transporters avoid unnecessary hardship at checkpoints and to give effect to a uniform.
GST migration re-opened
- Those businesses that had VAT or Service Tax or Central Excise registration were required to migrate and obtain GSTIN by registering under GST. This migration was later closed.
- The 28th GST Council has now approved the proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process.
- Taxpayers who filed Part- A of form GST REG-26, but not Part- B need to approach the jurisdictional Central Tax / State Tax nodal officers with the necessary details on or before 31st August, 2018 to complete the procedure.
- All such taxpayers who are now migrating will also be not levied a penalty for late filing GST return. However, such taxpayers will have to file GST return first along with the payment of late fee. On filing the GST return, the GSTN would provide credit by way of a reversal of the amount paid as late fees in the cash ledger under the tax head.
*To encourage the same the late fee payable for delayed filing of return in such cases is decided to be waived.
- Exemption on outward transportation of all goods by air and sea is extended by another year till 30th September, 2019.
- Services provided in sectors like banking, IT have been provided relief by exempting services supplied by an establishment of a person in India to any establishment of that person outside India (related party).
Other key points
- Currently, the fiber material is charged at a higher GST rate of 12% as compared to the final apparel that was made out of it attracted only 5%. Due to this, ITC on fiber material was not being able to be utilized. On account of the inverted duty structure that currently prevails in this industry, GST council has proposed for the provision of allowing refund of the accumulated ITC by giving prospective effect to its applicability from 27th July 2018.
- Registered persons may issue consolidated credit / debit notes in respect of multiple invoices issued in a Financial Year.
- Hotels to be taxed on actual tariff basis not on declared tariff.
- Common-use foot wares having retail price up to INR 1,000 to be taxed at 5 % for those with price exceeding INR 1000, 18% GST rate will be applicable.
- Ethanol oil for oil companies to be taxed at 5 per cent in place of 18 % earlier.
- GST rates for all leather items reduced to 18 per cent from 28 %.
- GST rates cut to 18% for special purpose vehicles, work truck, trailers.
- Rates on scents, toilet spray now under 18 % slab.
- GST on bamboo flooring put under 12 % category.
- Handicraft items to now be taxed at 12 %.
- GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors, handmade lamps etc. reduced to 12%.
- GST on imported urea reduced to 5%.
- Rates for 17 white goods including — Washing machine, Refrigerators, TV, Video games, Vacuum cleaners, Trailers, Juicer mixer, Grinders, Shavers & Hair driers, water cooler, water heaters, Lithium ion batteries, electric iron – reduced by 10 % from 28 % to 18 %.
- Sanitary napkins that were earlier taxed at 12 % has been put under exempted category.
- Marbles, stone and wood deities get exemption.
- Rakhi and fortified milk are also exempted.
New GST rates