Latest GST News, Notification & Announcements

Last Updated at: March 28, 2020
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Latest Update

 

GST return filing has been extended to June 30, 2020

gst

Any business offering sale of goods with an annual turnover of 40 lacs or service with an annual turnover of 20 lacs would require the registration for GST and have a valid GST Number. Here, we are highlighting the major updates about Goods and Services Tax in the recent times.

  1. Mobile phones to cost more as GST rates increase to 18%

In a recent announcement, the rate of GST on mobile phones has been increased from the current 12% to 18%, making cell phone prices go higher. This has been done to correct the inverted duty structure, which arose due to a higher GST rate on input goods for manufacturing and assembling cell phones than the GST rate on the final phone. However, in a bid to increase intermediate activities in India, the rate for maintenance, repair, and assembling of cell phones has been brought to 5%.

  1. Promoting aircraft repair, maintenance and overhaul operations in India

To promote the repairing, maintenance, and overhauling – also known as RMO of aircraft in India, the GST Council has decided to levy a reduced rate of 5%, from an earlier 12% rate. This is accompanied by a change in place of supply rules – where the location of the recipient will be reckoned for tax purposes. This is likely to bring greater benefits to the nosediving aviation repairing industry in India. It was also clarified that full input tax credit would be available for the same.

  1. Changes for new businesses

For businesses that have taken a new GST number, there are new restrictions imposed on the processing of input tax credits till the time actual physical verification of the premises and financial KYC has been done.

  1. Know your Supplier feature

In the recent GST Council meeting, a new feature will be added called ‘Know Your Supplier’, which will be introduced to enable every registered person to have some basic information about the suppliers with whom they are currently conducting or proposing to conduct business.

Get Online GST Registration
  1. Classification mismatch corrected – Reduction in rate of matchsticks

Until now, handmade matches attracted a 5% rate whereas other matchsticks attracted an 18% rate, bringing about confusion in classification. Now, the GST rate on all types of matches, whether Handmade or other than Handmade has been rationalized to 12%, instead of following two separate rates.

  1. Opting for cash or credit refund

The GST Council has also decided to allow a taxpayer to initiate a refund to be sanctioned in either cash or credit in case of excess payment of tax. This would allow cash-starved businesses to gain working capital, instead of adjusting the excess towards tax payment in the next tax cycle.

  1. Procedural and filing changes initiated

  2. Annual return filing date extended – For GSTR-9 and 9C which are annual returns to be filed by all taxpayers. The due date has been extended to 30th June 2020 for FY 2018-19, which was earlier due to being filed on 31 March 2020.

Increase in the threshold for mandatory annual return filing –

To provide relief to small and medium businesses, the GST Council has increased the threshold for mandatory annual return filing from ₹2 crore to ₹5 crores. Moreover, late fees will not be levied for delayed filing of the Annual Return. And the Reconciliation Statement for the financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.

 

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Latest GST News, Notification & Announcements

428

Any business offering sale of goods with an annual turnover of 40 lacs or service with an annual turnover of 20 lacs would require the registration for GST and have a valid GST Number. Here, we are highlighting the major updates about Goods and Services Tax in the recent times.

  1. Mobile phones to cost more as GST rates increase to 18%

In a recent announcement, the rate of GST on mobile phones has been increased from the current 12% to 18%, making cell phone prices go higher. This has been done to correct the inverted duty structure, which arose due to a higher GST rate on input goods for manufacturing and assembling cell phones than the GST rate on the final phone. However, in a bid to increase intermediate activities in India, the rate for maintenance, repair, and assembling of cell phones has been brought to 5%.

  1. Promoting aircraft repair, maintenance and overhaul operations in India

To promote the repairing, maintenance, and overhauling – also known as RMO of aircraft in India, the GST Council has decided to levy a reduced rate of 5%, from an earlier 12% rate. This is accompanied by a change in place of supply rules – where the location of the recipient will be reckoned for tax purposes. This is likely to bring greater benefits to the nosediving aviation repairing industry in India. It was also clarified that full input tax credit would be available for the same.

  1. Changes for new businesses

For businesses that have taken a new GST number, there are new restrictions imposed on the processing of input tax credits till the time actual physical verification of the premises and financial KYC has been done.

  1. Know your Supplier feature

In the recent GST Council meeting, a new feature will be added called ‘Know Your Supplier’, which will be introduced to enable every registered person to have some basic information about the suppliers with whom they are currently conducting or proposing to conduct business.

Get Online GST Registration
  1. Classification mismatch corrected – Reduction in rate of matchsticks

Until now, handmade matches attracted a 5% rate whereas other matchsticks attracted an 18% rate, bringing about confusion in classification. Now, the GST rate on all types of matches, whether Handmade or other than Handmade has been rationalized to 12%, instead of following two separate rates.

  1. Opting for cash or credit refund

The GST Council has also decided to allow a taxpayer to initiate a refund to be sanctioned in either cash or credit in case of excess payment of tax. This would allow cash-starved businesses to gain working capital, instead of adjusting the excess towards tax payment in the next tax cycle.

  1. Procedural and filing changes initiated

  2. Annual return filing date extended – For GSTR-9 and 9C which are annual returns to be filed by all taxpayers. The due date has been extended to 30th June 2020 for FY 2018-19, which was earlier due to being filed on 31 March 2020.

Increase in the threshold for mandatory annual return filing –

To provide relief to small and medium businesses, the GST Council has increased the threshold for mandatory annual return filing from ₹2 crore to ₹5 crores. Moreover, late fees will not be levied for delayed filing of the Annual Return. And the Reconciliation Statement for the financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.

 

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