2 years of GST: What do GST provisions now look like?

Since its inception in 2017, GST has been amended innumerous times to make the lives of taxpayers simpler, easier.

However, in the recent few months, GST council has focused on introducing amendments that provide a long-term sustainable GST framework.

Government has introduced GST 2.0 return filing system which will ease down the business compliances further, besides bringing more classes of taxpayers in the ambit of present schemes and rules.

Our today’s blog will discuss in detail about the amendments recently introduced into the GST law and its rules -

Composition scheme extended to service providers

Composition scheme was introduced for goods suppliers initially. However, the scheme has been extended to service providers as well as those suppliers who deal in both goods and services.

To be eligible for the composition scheme, the aggregate turnover should be less than ₹ 50 lakhs in the previous financial year.

For composition scheme providers, the GST rate will be 6% (3% CGST + 3% SGST). Composition suppliers have to file only one return with quarterly payment of taxes (along with a simple declaration).

In the case of goods, the current threshold limit for composition scheme is ₹ 1.5 crore (₹ 75 lacs for special category states).

Threshold limit for GST registration for goods suppliers increased to ₹ 40 lakhs

Those suppliers who supply goods exclusively will have to register under GST if their aggregate turnover crosses ₹ 40 lakhs.

Also, the threshold limit for GST registration for businesses operating in special category states has been increased to ₹ 20 lakhs.

In the first GST council meeting post Lok Sabha Election, GST Council passed several decisions, including deferment of due date for filing annual returns. You can glance through all the major highlights from 35th GST Council Meeting here .

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GST 2.0 to be implemented from October 2019

Newer, simpler GST return filing system will be implemented from October 2019 for big companies and from January 2020 for all the taxpayers.

Two new returns “Sahaj” and “Sugam” have been introduced which will simplify the GST return filing process. You can read about the GST 2.0 return filing system in detail here .

NAA given more powers to curb the unfair profiteers

The validity of National Anti-Profiteering Authority has been extended to two years i.e. 30th November, 2021. Also, NAA is now empowered to impose penalty at 10% of the profiteered amount, if the defaulter doesn’t deposit the profiteered amount within 30 days from date of passing of the order by Authority.

Also, NAA will enjoy powers of Civil court under the code of Civil Procedure, 1908 and its advanced rulings will be binding PAN wise.

OIDAR services providers not required to file annual return and reconciliation statement

Suppliers of Online Information Database Access and Retrieval Services (OIDAR) have been exempted from filing annual return GSTR-9 and the reconciliation statement GSTR-9C.

Amount can be transferred from one head to another in Electronic Cash Ledger

A registered person can transfer any tax/ interest/ penalty/ fee amount to any other head in the electronic cash ledger by filing GST PMT-09.

E-invoicing to be introduced to slash tax evasion

Government is planning to introduce a masterstroke in form of e-invoicing, under which the taxpayers will have to issue invoices through GST portal. This step will allow the GST officials to track the outward supplies records even before a taxpayer has filed the returns.

To learn more about e-invoicing and how it will affect your business, read our detailed blog here .

Road Ahead

FM Nirmala Sitharaman has clarified that GST will be more simplified for the taxpayers. Simultaneously, the provisions will become more stringent for the defaulters, so that tax transparency improves. It will be interesting to see how GST unfolds itself in the time to come!

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