Changes in GST from 1.4.2019

By | March 9, 2019
(Last Updated On: March 9, 2019)

Changes in GST from 1.4.2019

1. GST Composition scheme for service providers

Currently, the privilege of composition scheme is available only to the suppliers who are in to the business of supply of goods. The composition scheme was not available to the service providers except for the restaurant and catering services.

With effect from April 1, 2019 the service providers can also avail the composition scheme. This scheme shall be available subject to some conditions such as supplier is engaged in supply of goods or services within same state and the aggregate turnover of supplier does not exceed Rs. 50 lakhs during the financial year. This has been made effective vide 
 Notification No. 02/2019 – Central Tax (Rate), dated the 7th of March, 2019

The benefit of this scheme shall not be available to service providers who are rendering services in multiples states or through e-commerce websites. Thus, Chartered Accounts, Architects, etc. may not avail this scheme if they have clients in different states.

2. GST Threshold Limit for composition scheme Increased 

The existing threshold limit on gross turnover in previous financial year to avail of the composition scheme has been increased from Rs. 1 crore to Rs. 1. 5 crores. In respect of special category states (North-Eastern States), the threshold limit has been increased from Rs. 50 lakhs to Rs. 75 lakhs. Consequently, the taxable persons can substantially reduce their compliance burden as they would be required to file GST returns on quarterly basis instead of monthly. This benefit has been extended vide

Notification No. 14/2019 – Central Tax, dated the 7th of March, 2019

3. GST Threshold limit to take registration increased

As per Section 23 of CGST Act, every person is required to obtain the GST registration if his turnover from supply of goods or services exceeds Rs. 20 lakhs. This threshold limit has been increased to Rs. 40 lakhs if supplier is engaged in supply of goods. In other words, any person who is engaged in supply of goods and his total turnover in the current financial year does not exceed Rs. 40 lakhs, he is not required to take registration under GST. This exemption from GST registration is subject to various conditions, inter-alia, he is not making any inter-state supply, he is not a non-resident taxable person, etc. This has been made applicable by Notification No. 10/2019 – Central Tax, dated the 7th of March, 2019

The effect of all changes in the threshold limit for GST registration and composition scheme has been enumerated in below table.

The effect of all changes in the threshold limit for GST registration and composition scheme has been enumerated in below table.

Nature of supplyTurnover or ReceiptsRegistrationComposition schemeRate of tax for composition scheme
GoodsUp to 40 Lakhs
More than 40 Lakhs but up to 1.5 crore1% of the turnover
More than 1.5 crore
Restaurant ServicesUp to 20 Lakhs
More than 20 Lakhs but up to 1.5 crore5% of the turnover
More than 1.5 crore
Other servicesUp to 20 Lakhs
More than 20 Lakhs but up to 50 Lakhs6% of the turnover
More than 50 Lakhs

4. Due date for filing of GSTR-1 and GSTR-3B

The due dates for filing of GSTR-1 and GSTR-3B for the months of April, May and June of 2019 has been notified, which shall be as follows:

Type of returnApril, 2019May, 2019June, 2019
GSTR-1(Turnover more than 1.5 crore)May 11, 2019June 11, 2019July 11, 2019
GSTR-1(Turnover up to 1.5 crore)July 31, 2019
GSTR-3BMay 20, 2019June 20, 2019July 20, 2019

Turnover limit of current or previous financial year shall be considered to determine the eligibility of the supplier for filing of monthly or quarterly GST return.

This has been made effective by Notification No. 11/2019, Notification No. 12/2019, and Notification No. 13/2019- Central Tax dated March 7, 2019.

5. GST on various sales promotional schemes.

The CBIC has issued clarifications on chargeability of GST, valuation of goods and reversal of ITC in respect of free samples and promotional goods distributed by a taxable person. This clarification has been issued in Circular No. 92/11/2019-GST.

6. No GST to be levied on Income Tax TCS component collected by suppliers.

Valuation Rules specify that value of supply shall include any taxes, duties, cesses, fees and charges levied under any law for the time being in force except GST. Thus, CBIC has clarified that if supplier collects TCS form the buyer on sale of a product then GST shall not be charged on the TCS component collected by the supplier. This has been clarified in Corrigendum to Circular No. 76/50/2018-GST dated December 31, 2018.

7. GST Annual Return Forms GSTR-9 and 9A are now live on portal

Annual return in Form GSTR-9 and 9A are now live on portal. The last date for filing of Annual Return for the Financial Year 2017-18 is June 30, 2019.

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About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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