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32nd GST Council Meeting Updates

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Highlights: 32nd GST Council Meeting

The GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi gave approval for the following:
  • 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.
  • The Last Date for passing the examination for GST Practitioners to be extended till 31.12.2019 for those GST Practitioners who have enrolled under rule 83(1)(b) i.e. who were sales tax practitioner or tax return preparer under the existing law for a period of not less than five years.

Decisions around MSME Relief

The GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi took the following major decisions to give relief to MSME (including Small Traders) among others –

1) Higher Exemption Threshold Limit for Supplier of Goods:

Basic exemption limit for suppliers of goods will be increased from Rs 20 lakhs to Rs 40 lakhs. However, this limit remains Rs 20 lakhs for suppliers of services. For the special category States, the limit for registration is currently at Rs 10 lakhs. This limit in case of supply of goods is increased up to Rs 20 lakhs and such States have been given an option to either choose Rs 40 lakhs or Rs 20 lakhs threshold limit in a week’s time. Operational from the 1ST of April, 2019.

2) Composition Scheme for Services:

A Composition Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to Rs 50 lakhs.
The said Scheme Shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods.
They would be liable to file one Annual Return with Quarterly Payment of Taxes (along with a Simple Declaration). Operational from the 1ST of April, 2019.

3) Increase in Turnover Limit for the existing Composition Scheme:

The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to Rs 1.5 crore. Special category States would decide, within one week, about the Composition Limit in their respective States. Operational from the 1ST of April, 2019.

4) Compliance Simplification:

The compliance under Composition Scheme shall be simplified as now they would need to file one Annual Return but Payment of Taxes would remain Quarterly (along with a simple declaration). Operational from 1ST April, 2019.

5) Free Accounting and Billing Software

shall be provided to Small Taxpayers by GSTN.

Matters referred to Group of Ministers:

  • 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.
  • A Group of Ministers shall be constituted to examine the GST Rate Structure on Lotteries.

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.

You may read about the previous Council Meeting here.

IRIS Business is a leading GST Suvidha Provider (GSP) providing easy and efficient solution for GST (IRIS Sapphire) and E-way bill (IRIS Topaz) compliance. To have your GST queries solved and to know more about our solution, please contact us at support@irisgst.com

About Manoj Jain

Manoj Jain, a CA and CS, has been working with IRIS for over 8 years and is currently one of the key subject matter experts for IRIS’ GST compliance offerings. He also has been guiding the clients for GST law related matters. Before GST he was handling US compliance analyzing US financial statements and reviewing XBRL filings for US and India market. He enjoys listening to music and traveling.

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Naryanan.v.k 2 months, 1 week ago

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.

people already suffered by natural calamities, in this situation, we can't understand why gst council give approval to levy cess , if tax levied on and collected from concern suffered state people and did relief work in their own money, what is the need of central government ? . "money ( levy on cess-intra state)received from whose suffered by natural calamties and return back to them " is this justice of law and council ?. please understand stand - GST is destination based tax and /or consumption based tax.

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BHASKAR DATTA 2 months, 1 week ago

GST NEW RULES

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Shivram Prasad 2 months, 1 week ago

The said Scheme (6% GST between 20 to 50L) shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods.

I am curious about whether this applies to suppliers who sell their goods on Amazon or their services on Airbnb. Hitherto, they were not allowed to opt for the composition scheme. i.e. sale through an eCommerce provider across states.

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Manoj Jain 2 months, 1 week ago

Dear Mr. Shivram ,
Thanks for going through the blog. So far your query Composition scheme for Services provider.
The said Scheme (6% GST between 20 to 50L) shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods.
It seems that such Service Provider cannot provide inter-state outward supply of services viz. CA,CMA etc. if opt for Composition . So service providers really not getting desired benefits from this proposal of composition scheme.
For better understanding we have to wait for notification.

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