10 Recent GST News and Notification

The following are the recent GST council decisions taken:


1. Registration and Threshold
  1. Threshold limit of aggregate turnover for exemption from registration and payment of GST for suppliers of services would be Rs. 20 lakhs and Rs. 10 lakhs (for States of Manipur, Mizoram, Nagaland and Tripura).
  2. Threshold limits of aggregate turnover for exemption from registration and payment of GST for the suppliers of goods would be Rs. 40 lakhs and Rs. 20 lakhs (in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) with effect from 01.04.2019.
  3. The following classes of taxpayers shall be exempted from obtaining registration:
  • Suppliers of services, having turnover up to Rs. 20 lakh, making inter State supplies
  • Suppliers of services, having turnover up to Rs. 20 lakh, making supplies through e-commerce platforms.
  1. 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.
  2. Mandatory registration is required for only those e-commerce operators who are required to collect tax atsource.
  3. Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
  4. Revocation of cancellation of those registration, which were cancelled till 31st March, 2019, has been allowed. The application for revocation can be filed till 22nd July, 2019.
2. Migration
  1. One more window for completion of migration process permitted. Due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer was extended till 31.01.2019.
  2. Due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019 / quarters July, 2017 to December, 2018 by such taxpayers was extended till 31.03.2019.
3. Composition Scheme
  1. Composition threshold limit increased to be Rs. 1.5 Crore
  2. Composition scheme shall not be available to inter-State suppliers and specified category of manufacturers.
  3. Taxpayers under Composition scheme have been allowed to pay „self-assessed tax‟ on a quarterly basis till 18th of the month succeeding such quarter and furnish a return till 30th April for the previous financial year.
4. Tax Administration
  1. In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below Rs. 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further, all administrative control over taxpayers having turnover above Rs.1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration.
  2. Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions.
  3. Power to collect GST in territorial waters shall be delegated by Central Government to the States.
  4. Power to take intelligence based enforcement action over entire taxpayer’s base would be with both Central as well as State tax administration.
5. Reverse Charge Mechanism
  1. Levy of 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, on the recommendations of the GST Council.
  2. In this regard, notification No. 7/2019- Central Tax (Rate) dated 29.03.2019 has been issued which prescribes that the promoter shall pay tax on reverse charge basis w.e.f. 01.04.2019 on following supplies received from unregistered suppliers –
  • Such supplies which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of a project as prescribed in notification No. 11/2017- Central Tax (Rate) dated 28.06.2017,
  • Cement which constitute the shortfall from the minimum value of goods or services or both required to be purchased by a promoter for construction of project as prescribed in notification No. 11/2017- Central Tax (Rate), and
  • Capital goods supplied to a promoter for construction of a project on which tax is payable or paid at the rate prescribed in notification No. 11/ 2017- Central Tax (Rate).
  1. Earlier, the reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub- section (4) of section 5 of the IGST Act, 2017 was kept under suspension till 30.09.2019.
6. Payment of Tax
  1. There shall be no requirement on payment of tax on advances received for supply of goods by all taxpayers.
  2. A Group of Ministers constituted for promoting digital payment has recommended to allow cash back to an amount equal to 20% of GST paid or Rs. 100/-, whichever is lower for cases where payment is made by BHIM or Rupay card. The necessary infrastructure is being developed and soon the scheme would be implemented on pilot basis in State of Assam and few other States which volunteer for the same.
  3. In principle approval has been given for amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger. This would be implemented once the law is amended.
7. Return and Late Fees
  1. All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.
  2. Taxpayers with turnover up to Rs. 1.5 Cr are required to file information in FORM GSTR-1 on a quarterly basis.
  • Other taxpayers would have to file FORM GSTR-1 on a monthly basis.
  1. Due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be extended till 30.06.2019.
  2. Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months / quarters July, 2017 to September, 2018 are furnished after 22.12.2018 but on or before 31.03.2019.
  3. From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows:
  • Whose tax liability for that month was „NIL‟ will be Rs. 20/- per day instead of Rs. 200/- per day
  • Whose tax liability for that month was not „NIL‟ will be Rs. 50/- per day instead of Rs. 200/- per day.
8. New Return System
  1. New return filing system shall be introduced on mandatory basis from 01.07.2019.
  2. All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return.
  3. New return system is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier.
  4. Invoices can be uploaded continuously by the supplier and can be continuously viewed and locked by the buyer for availing input tax credit. This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the supplier. Simply put, the process would be “UPLOAD – LOCK – PAY” for most tax payers.
  5. Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
  6. NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
  7. There shall be quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns, details of information required to be filled is lesser than that in the regular return.
  8. New return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.
9. Real Estate
GST shall be levied at effective rate of 5% on residential properties outside affordable segment and 1% on affordable housing properties.
Definition of affordable housing: A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value up to Rs. 45 lakhs (both for metropolitan and non- metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
GST exemption on TDR/ JDA, long term lease (premium), FSI: Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential property on which GST is payable.
Conditions for new tax rate:
1. Input tax credit shall not be available
2. 80% of inputs and input services [other than capital goods, TDR/ JDA, FSI, long term lease (premiums)] shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.
The new rate has become applicable from 01.04.2019.
  • One time transition option given to real estate firms to continue to pay tax at the old rates (effective rate of 8% or 12% with ITC) on on-going projects (buildings where construction and actual booking have both started before 01.04.2019) which have not been completed by 31.03.2019. Real estate firms can communicate their option till 10th May, 2019 to the jurisdictional officers.
10.E-way Bill System
  • The introduction of e-way (electronic way) bill is a monumental shift from the earlier “Departmental Policing Model” to a “Self-Declaration Model”.
  • New provisions in the e-way bill system have been introduced such as the auto calculation of distance based on PIN codes for the generation of e-way bill and blocking the generation of multiple e-way bills on one invoice.
  • The generation of e-way bill would be barred if a supplier or recipient does not file GST returns for 2 consecutive tax periods. This will be made applicable from 21st June, 2019.

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