32nd GST Council Meeting – All updates and important decisions taken

32nd GST Council Meeting

The GST Council meeting was held on 10th January 2019 in New Delhi to bring some benefits to medium and small-scale enterprises (MSMEs) with regards to GST exemption and permitted 6 % composition scheme for the services sector.

Addressing a press conference after the 32nd GST Council meet, Finance Minister Arun Jaitley declared that the services sector will now be eligible for benefits under the composition scheme, which was only applicable to manufacturers and traders earlier.

In the meeting, GST council has broadly taken below mentioned decisions –

The limit for the suppliers of goods i.e. Rs. 40 lakhs and Rs. 20 lakhs for exemption from registration and payment of GST. States would be given an option to decide about one of the limits within a weeks’ time. However, the threshold for registration for service providers would continue to be Rs 20 lakhs and in the case of Special category States Rs 10 lakh.

A composition scheme will be made available for suppliers of services with a tax rate of 6% (3% CGST + 3% SGST) whose annual turnover in preceding financial year up to Rs 50 lakhs. The said scheme shall also be applicable to both service providers as well as suppliers of goods and services, who are not eligible for the presently available composition scheme for goods.

The limit of annual turnover in the preceding financial year for availing composition scheme for goods will be increased to Rs 1.5 crore. Special category States will have to decide within one week about the composition limit in their respective States.

Those who come under the composition scheme or want to avail it will have to pay tax on a quarterly basis as only one return has to be filed during a year.

Meanwhile, the Council is yet to take a call on the real estate sector. Jaitley said that a 7-member GoM has been constituted to discuss ways to tackle issues in the ailing sector.

GST Council also approved the levy of cess on the inter-State supply of goods and services within the State of Kerala at a rate not exceeding 1% for a period not exceeding 2 years.

Similarly, if any state faces a natural disaster may approach the GST Council to demand a similar solution.

When asked whether there will be further rationalization of GST slabs or tax rates, Jaitley said further rate cuts can be discussed only when there is a rise in revenue collection.

Taxpayers under composition scheme will now need to file one annual return but payment of taxes would remain quarterly (along with a simple declaration)

Following matters were referred by the Group of Ministers

  • Proposal for giving a composition scheme to boost the residential segment of the real estate sector.
  • GST rate structure on lotteries.

All the changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, Circulars and notifications issued earlier and the corresponding changes in SGST Acts would be alert w.e.f. 01.02.2019.

A Guide to GST Registration

With the Goods and Services Tax (GST) becoming a reality on July 1, 2017, it is important to understand who needs to register for GST, how to register your business for GST, and what you need for business registration under GST regime.

How to register existing taxpayers for GST

A business with service tax or any VAT registration can register themselves on GST Portal

Registration requirements

  • Provisional id received from authority
  • PAN of the tax payer/business
  • Mobile number
  • Email id
  • Bank account details

Majority of the VAT businesses have been migrated to GST, while only 43% of service tax businesses and have been migrated to GST as on April 2017.

How to register for GST if you are new taxpayer

Eligibility criteria

Your business must have a turnover of Rs. 20 lakhs or more. However if the business is located in any of the seven Northeastern States, then your business turnover limit is Rs. 10 lakhs

Who has to register for GST?

  • A person who is doing business in trading of goods or services has to register for GST if his annual turnover exceeds Rs. 20 lakhs or more, or Rs. 10 lakhs for businesses in any state of North-East India.
  • A person who is liable to be registered shall apply for registration in every such State, or Union Territory in which he is so liable, within 30 days from the date on which he becomes liable to registered.
  • A person having multiple business verticals in a State may obtain a separate registration for each business vertical.
  • A person may get himself registered voluntarily, and all provisions of this GST Act, as are applicable to a registered taxable person, shall apply to such person.
  • A person shall have a Permanent Account Number (PAN) or a Tax Deduction and Collection Account Number (TAN) in order to be eligible for grant of registration. Exception is for non-resident taxable person.

Online GST Registration Procedure:

Registrations for GST can be done online through a portal (www.gst.gov.in) maintained by the Central Government or State Government. The applicant will have to submit an online application for GST registration using Form GST-1 along with detail of the good and services to be dealt. Online payment for the registration fee would be made available and temporary GST registration number would be provided on submission of application. On submission of the application, the applicant would have to print a copy of the application, attach the documents mentioned above and courier the same to the GST department. On verification of the application, final GST certificate will be issued by the concerned officer. GST registration procedure is expected to be a completely online process, similar to the service tax registration process. GST Payment Knowledge

It’s a simple, streamlined process to follow. Your taxes will be simplified to a large extent and your business will experience the easy flow of goods across state lines. The GST is an important step towards good governance and you do not have to worry about be taxed multiple times. It’s time to get started with your GST registration.