23rd GST Council Meeting – Modification in Composition Scheme

23rd GST Council Meeting – Modification in Composition Scheme

In India when businesses engaged in the distribution of commodities or supplies services have a turnover beyond Rs 20 Lakhs, then those companies are required to complete registration under GST. However, in North-eastern states and states in hilly areas, the turnover is relaxed to Rs 10 Lakhs. Casual registration is made by an individual who supplies goods or provides services on a temporary basis in a province where GST bill is applicable. However, the person does not have a fixed site to operate his business. In case of Composition Dealer, small businesses or taxpayers with revenue that is less than Rs. 75 lakhs can resort to this registration. Here, manufacturers will be charged a tax at a minimal rate of 1% or 2.50% in the form of CGST and SGST. While a small business can choose Composition tax payment, whereas operators, interstate sellers, e-commerce traders are not allowed to register for this system. Each individual who was recognized as a taxpayer before the introduction of GST is required to get registered under GST. Moreover, when a company is registered, in case the company is has been signed over to another individual, thereafter the new owner is liable to complete the registration which will be effective from the date of transfer. A business engaged in the interstate supply of goods has to register as well. The agents of the supplier are also liable to register. Input service distributor or an individual who delivers through e-commerce aggregator needs registration. Furthermore, any individual who is not currently living in India provides online information or services to an individual residing in India, has to register under GST. On 10th November 2017, the 23rd GST Council Meeting was organized. There were a variety of procedures introduced to enhance the compliance as well as diminish the liability of taxpayers. The GST Composition Scheme allowed a number of small businesses to register under this format as well as pay GST at an absolute rate. Furthermore, entities can file basic periodical GST returns. A range of modifications was introduced in order to make GST Composition Scheme more taxpayer forthcoming in the 23rd GST Council Meeting.

Under Composition Scheme- enhancement in Threshold Limit for Registration

The yearly cumulative revenue for enrolling under the GST Composition Scheme has been raised now to Rs.2 Crores. As a result, in order to the meet, the criteria for composition will be augmented to Rs 1.5 Crore on a yearly basis.

GST Rate for Composition Scheme Dealers

GST Composition dealers have to pay 1% as per the new GST rate. On the other hand, there are no alterations decided or pro claimed on the GST rate for composition scheme applicable to restaurants.

Supply of Services

As per as the GST Composition Scheme taxpayers registered here shall supply services with a chargeable value of up to Rs.5 lakhs on a yearly basis. The new stipulations will assist small computer shop operators enormously. In addition, the dealers implicated in offering services as well as with sales of the product will benefit in the same manner.

The new Due Date for Filing GSTR – 4

As per the new rules, now the taxpayer can file GSTR 4 return with registration under the GST composition scheme. GSTR4 is a return claimed quarterly. This return was initially due on the 18th of October, January, April, and July, in that sequence. Currently, the GSTR 4 for the duration of July to September 2019 quarter shall be scheduled on the 24th of December 2019 only. As far as the anticipated date for successive quarters is concerned, it shall be declared by the GST Council in the near future.

GST Rate Changes

1. For manufacturers and traders as per composition scheme, the rate is set at 1%. However certain conditions are applicable to this condition
2. The rate is decreased from 28% to 18%. This new rate will be applicable from 15th Nov 2017 on Shampoos, Tiles, Watches, and Perfumes.
3. The rate is decreased from 28% to 12% on Wet grinders and Tanks.
4. The rate is decreased from 18% to 12% on Condensed milk, refined sugar, and diabetic food.
5. The rate is decreased from 12% to 5% on Desiccated coconut, idli dosa batter, coir products.
6. The rate is decreased from 5% to 0% on Duar meal, khandsarisugar, dried vegetables
7. As far as restaurants within hotels, as well as room, on charges, not as much Rs. 7,500, the GST rate is set to 5%. In addition, the credit of ITC paid on private supplies shall not be taken into
8. As far as restaurants within hotels, as well as room, on charges, not as much Rs. 7,500, the GST rate is set to 18% and credit of ITC paid on private supplies can be gained.
9. As far as outdoor catering is concerned, it will be charged at 18% with the accessibility of ITC on inward supplies as before.

GST Council Meeting - Modification in Composition Scheme” brought forward a number of changes. It is now easier for taxpayers to understand the tax system. As a result, it is wise of every citizen to pay their taxes on time and follow the rules.