GST Pre-Diwali Reliefs

22^nd meeting of the GST Council has heralded some major, though temporary reliefs under the Goods & Services Act (GST)!

Highlights

GST on Reverse charge in respect of all intra-state & inter-state supplies received from any supplier who is not registered has been exempted from 13.10.2017 till 31.03.2018. This exemption shall apply to all registered persons.

Earlier exemption ceiling limit of Rs. 5,000/- of aggregate value of intra-state supplies stands withdrawn.

The ceiling limit of Rs. 5,000/- till 12.10.2017 will however remain applicable. [Notification No. 38/2017 – Central Tax (Rate), dated 13.10.17 & Notification No. 32/2017 – Integrated Tax (Rate), dated 13.10.17]

Even NGOs having turnover of goods and services under the threshold limit of Rs. 20 Lakhs were affected under Reverse Charge Mechanism. Hence, this exemption comes as a relief at least till 31^st March 2018.

The Central Government has made the following amendments with regards to Composition Scheme:

Threshold turnover increased to Rs. 1 Crore from Rs. 75 lac, and in notified state to 75 lac from 50 lac [Notification No. 46/2017 - Central Tax dated 13.10.2017]

Persons who are otherwise eligible for availing the composition scheme and are providing any exempt service shall be eligible for the composition scheme. Further for computing aggregate turnover in order to determine eligibility for composition scheme, value of supply of such exempt services shall not be taken into consideration.

Last date for filing the return by composition dealer for the quarter July - September, 2017 extended to 15.11.2017.

Unregistered service provider having turnover up to Rs. 20 lac can now provide interstate taxable supplies of services. [Notification No. 10/2017-Integrated Tax dated 13.10.2017.]

Taxpayers having turnover up to Rs. 1.5 Crore and not registered under composition scheme are not required to pay tax on advance received for supply of goods. [Notification No. 40/2017- Central Tax dated 13.10.2017.]

Invoice Rules have been modified [Notification No. 45/2017 – Central Tax dated 13.10.2017] to provide relief to certain classes of registered persons.

As per new rule 46A where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice –cum-bill of supply” may be issued for all such supplies.

Extension in various return filing dates

Last date for filing the return by input service distributor for the months of July, August and September, 2017 has been extended till 15.11.2017. [Notification No. 43/2017 – Central Tax dated 13.10.2017]

Last date for filing the return by OIDAR service provider for the months of July, August and September, 2017 has been extended till 20.11.2017. [Notification No. 42/2017 – Central Tax dated 13.10.2017]

Last date for filing return by registered persons, who have become eligible to avail ITC under Section 18(1) of the CGST Act, 2017 during the months of July, August and September, 2017 has been extended till 31.10.2017. [Notification No. 44/2017 – Central Tax dated 13.10.2017]