Amendments in GST effective from 01-04-2019

Amendments in GST effective from 01-04-2019

Amendments in GST effective from 01-04-2019 are as follows:

1. A new scheme of paying tax @6% in case of supply of goods and services has been brought in by the Govt. Salient features of the scheme are as follows:-

1. Applicable for a turnover upto 50 Lakhs.
2. Tax rate @6%.
3. This is not a composition scheme i.e. no separate option is to be filed, nor GSTR-4 is to be filled. GSTR-1 and 3B as usual shall be filed.
4. Not available to those who can avail the normal composition scheme
5. Not available in case of interstate taxable outward supply.
6. This should be mentioned on Bill of Supply “taxable person paying tax in terms of notification No.2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to collect tax on supplies”
7. Cannot collect tax from the buyer.
8. ITC availed on goods if any has to be reversed.
9. Input tax credit cannot be availed on inputs and Input services.

 ITC adjustment via rule 88A:

2. A new rule 88A has been inserted in the CGST Rules, 2017 to ease off the unnecessary burden created by Sec 49A and 49B as inserted w.e.f. from 01^st February 2019. Now this rule allows the assessee to determine the manner in which the credit of IGST shall be utilised. Here they have allowed the assessee to use IGST in any manner between CGST and SGST. Thus, they have allowed that it may be used equally or any other manner whatsoever between CGST and SGST.

The only condition is that IGST balance should be “ZEROED” before utilising any other credit. Thus you need to exhaust the ITC of IGST first.

3. New GST Return utility seems to be deferred to July only, which was earlier proposed from April. The old returns were only prescribed again for April, May and June with same due dates. 

4. Rest all the amendments were for Real Estate sector for which a separate advisory shall be issued.

Thus you need to keep them in mind before starting your April.