31st GST
Council meet concludes – BIG Relief to the taxpayer – CA. Keshav R Garg
GST
council meeting has just concluded and it was an utter disappointment looking
at that most of the policy decisions have been deferred. Looks like the focus was
only on rationalization of rates of tax. Most of the items presently charged at
28% has been reduced to 18%. The frozen vegetables has also been reduced from
5% to zero. So not much apart from rate of tax has been done.
What
has not been reduced on rate of tax is cement, automobiles part, Air
Conditioner and Dishwasher. The auto parts also continue to be charged at 28%.
The Council analysed that 22% of the tax revenue is collected from items
charged at 28%. Sin Goods and luxury items also continue into 28% bracket.
1. Religious
visits to Haj/pilgrimage through chartered plane has been reduced to rate of
tax charged with normal flights.
2. But
there were no sound related to refund for railway sector or implementation of
new amended provisions. The council did not focus on any of such policy matters
and had deferred the same for next GST Council Meeting.
3. We
expected that there shall be some announcement related to the new GST Return
formats. There council decided that a trial run for these new return formats
would start from 1st April 2019.
4. Also
government provided a major relief to the taxpayers by allowing ITC to
taxpayers for FY 2017-18 till 31st March 2019.
5. Also
it has been decided that the interest shall be charged only on the net cash
payable liability on the taxpayer and not on full tax liability. This means
that the interest shall be charged on the tax payable after utilisation of
Input Tax Credit. A suitable amendment u/s 50 has been proposed.
6. Further
in a major decision Council has in principally approved the Composition scheme
for the small scale service providers. It was felt that the service sector especially
small scale ones are under huge burden of GST. The council unanimously approved
the scheme for small scale service providers. The rates and threshold limit for
this scheme shall be decided in forthcoming meetings.
7. Taxation
on residential property in real estate sector to be reviewed by the fitment
committee. Decision regarding 12% tax on under construction property needs to
be taken.
8. The
Council is also thinking on lines to increase the basic threshold limit of Rs.
20 lacs. Also there had been changes proposed in case of natural calamity. Also
where there this conflicting views of two or more AAR, the central authority
will take the view and same shall be binding nationally.
9. The
services provided by banks to saving accounts holder and holder of jan dhan
account shall be exempted.
10. Setoff
amongst different head/sub head of tax shall be allowed. A common ledger will be
prepared where the amount shall be utilised inter head.
11. Also
the annual return and GST Audit extended till 30th June 2019. Also
major change expected in these return. Taxpayer can also make changes in the
data he had filed in his monthly returns.
12. The
council also decided that refund applications shall be purely online and there
shall be no manual process. Based upon test run the future course of action
shall be decided.
13. No
Late fees to be charged till 31st March 2019
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