Recommendations of 28th GST Council Meeting
Recommendations of 28th GST Council Meeting
The GST Council in their 28th GST Council Meeting has made the following recommendations:
Return filing for small taxpayers
- NIL return filers to be given facility to file the return by sending SMS
- The option of filing quarterly returns for small taxpayers having turnover below Rs. 5 crores
- Quarterly return will be similar to main return with monthly payment but for two kinds of registered persons – small traders making only B2C supply or making B2B+B2C supply
- These returns to have lower information than regular returns
Return filing design
- All other taxpayers excluding small taxpayers, ISD etc. are to file the monthly return.
- Return to have two main tables – one for outward supplies and one for availing ITC based on invoices uploaded by the supplier.
- Invoices to be continuously uploaded by the seller and locked by the buyer for availing ITC.
- Based on the nature of supplies, taxpayers to create the profile.
- Information to be filled to be dependent on this profile.
- Amendment of invoices and other details to be allowed through amendment return.
- Payment will also be allowed through amendment return resulting in the saving of interest.
Composition taxpayers
- The upper limit for turnover for opting for composition raised from Rs. 1 cr to Rs. 1.5 cr.
- Composition dealers to be allowed to supply services of the higher of: o Rs. 5 lakhs o 10% of the turnover in the preceding financial year.
Reverse charge
- Reverse charge on supplies from unregistered persons to be restricted to only specified goods only in case of notified classes of registered persons.
Registration
- Exemption limit for registration raised from Rs. 10 lakhs to Rs. 20 lakhs for certain States i.e. Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim, and Uttarakhand.
- Multiple registrations allowed for multiple places of business in the same state.
- Mandatory registration required only for e-commerce operators required to collect TCS.
- Registration to remain temporarily suspended when its cancellation is in process.
Expansion of the list of ‘no supply’ under Schedule III
- Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India(Merchant trade transactions).
- Supply of warehoused goods to any person before clearance for home consumption.
- Supply of goods in case of high sea sales.
Download the full pdf of Recommendations of 28th GST Council Meeting by clicking the image:
Input Tax Credit
- ITC has been widened and is now available on the following:
- Most of the activities or transactions as per Schedule III
- Motor vehicles for transportation of persons having seating capacity > 13, vessels and aircraft o Motor vehicles for transportation of money for or by a bank/financial institution
- Services of insurance, repair, and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available
- Goods/services which are obligatory for an employer to provide employees under any law
- Failure to pay to the supplier within 180 days from the date of issue of the invoice not to attract any interest.
- Order of cross-utilization of ITC rationalized.
Credit/Debit notes
Registered person may issue consolidated credit/debit notes in respect of multiple invoices issued in a financial year.
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