The 23rd GST Council Meeting was held yesterday, on 10th November 2017. The meeting had some huge perks to offer – much needed ones. Some of the biggest rewards were made for the composition dealers. The composition scheme was brought about to benefit small dealers. However, good intentions aside, few of the restrictions in the scheme made it really difficult for dealers to operate. Some of the announced changes are a good step in removing those roadblocks. Let’s have a look:
1) Increase in Threshold Limit for Registration
As of now, traders with a turnover of upto Rs. 1 crore could opt for the composition scheme under GST. In yesterday’s meeting, this limit was recommended to be increased to Rs. 2 crores.
This will definitely encourage more traders to come under the composition scheme ambit. Initially, composition scheme had received lukewarm response from the trading section. At that time the turnover threshold was Rs. 75 lakhs. Post that, the turnover threshold was increased to Rs. 1 crore which encouraged more traders to come forward and consequently the registration window was re-opened.
Read our article on this: GST Composition Scheme registration re-opens till September 30
Going by the same track record, it can be well expected that more businesses will come forward and register themselves under this scheme.
2)Uniform GST Rate of 1%
The GST rate payable by GST Composition dealers has been harmonised for all taxpayers at 1%. Exception to the rule are the restaurants. The rates for restaurants have been kept unchanged.
3) Services brought under the ambit – Supply of Services upto Rs.5 Lakhs
As of now, traders availing the composition scheme could not opt for supply of services (barring restaurants). However, yesterday at the meeting it was recommended that even services of upto a certain turnover limit could also be provided. Taxpayers registered under the GST Composition Scheme can now supply services with a taxable value of upto Rs.5 lakhs per annum.
This is indeed a welcome move and definitely help small businesses where support services are integral to their trade. For example, traders dealing in goods like computers, refrigerators, etc.
4) Due Date for Filing GSTR – 4 Return Extended
Dealers registered under Composition scheme were required to file GSTR 4. GSTR4 is a quarterly return that was originally due on the 18th of October, January, April and July. Now, GSTR 4 for the July to September 2017 quarter will be due only on the 24th of December 2017. The due date for subsequent quarters will be announced by the GST Council at a future date.
Apart from these positive measures, it was also announced that inter-state operations and input tax credit were still out of reach for the composition dealers.
Read more about composition scheme here: Composition Scheme under GST-What is new
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