Month: October 2017

GST

GST Provisions Rewritten

Yes the heading may be somewhat confusing but its true considering the outcome of yesterday’s GST council meeting .The provisions are virtually rewritten.Without going into the why ‘s and how’s here are the details

General Changes & Relief for Small and Medium Enterprises

To Analyse the changes brought we provide summary below

a) The Composition scheme threshold is now Rs.1.00 Cr
b) Small Dealer is now upto 1.5 Cr who can file its returns on a quarterly basis except for monthly basis previously
c) GST on services of motor cab at 5% without ITC and 12% with ITC extended to any motor vehicle
d)Persons who were otherwise eligible for composition scheme but becomes ineligible due to reciept of amount on account of exempt services will be now eligible for composition scheme
e)Now a service provider who has turnover below 20.00 lacs if providing inter state services need not register under GST.Earlier it was mandatorily required to be registered if providing inter state services
f) Reverse Charge under sec 9(4) and 9(5) has been DEFERRED (not abolished) till 31/03/2018
g)Small taxpayers will pay tax on quarterly basis though the buyers of these taxpayers can claim ITC on monthly basis.
h)Now Small taxpayers need not pay tax on Advances recieved but the tax will have to be paid once the service is provided
i) TDS provisions deferred till 31/03/2018 and e-way bill provisions deferred till Jan 2018
j) Due dates are also extended for composition dealer for july to sep 2017 to 15/11/2017
k) Invoice rules will also be modified to provide some relief

So if we can see almost all major provisions that had been in vogue have been tweaked thereby rewriting the GST provisions which are definitely a welcome move and a major relief to small tax payers