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.

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Input Tax Credit

• ITC has been widened and is now available on the following:

1. Most of the activities or transactions as per Schedule III
2. 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
3. Services of insurance, repair, and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available
4. 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.