Page 13 - Banking Finance July 2020

GST UPDATE

These options will be sent to GST cut for two-wheelers during titioner Axat Vyas said said traders who
states for a view within 7 Days and the media briefing of 41st GST had registered previously as their turn-
will apply for this fiscal year only: Council meet over was over Rs 20 lakh can get them-
Finance Secretary selves de-registered. However, traders
Y The government will give a further
Y States have asked us to give them relaxation of 0.5% in states' bor- with interstate sales or doing both trad-
7 working days to think about the rowing limit under FRBM Act as ing and providing services will be sub-
options. These options would be 2nd leg of Option 1. States can jected to previous exemption limit only.
available only during the current choose to borrow more, beyond The exemption for service providers will
year, the situation would be re- expected compensation itself, be annual turnover of Rs 10 lakh.
viewed next year. We may have since that is the injury caused by The new cap for composition scheme
another GST meet soon: Finance Covid-19: FM Nirmala Sitharaman or the one for lump sum tax is Rs 1.5
Minister NirmalaSithaaraman on GST compensation to states. crore of annual turnover, up from Rs
one crore applicable till now. However,
Y Once the arrangement is agreed only those traders who have made ap-
upon by GST Council, we can pro- Businesses with annual plication by March 31, 3019, will be
ceed fast & clear these dues and turnover of up to Rs 40 eligible for the scheme. Traders with
also take care of the rest of the fi- lakh are GST exempt: Fi- service component of Rs five lakh or 10
nancial year. These options will be per cent of total turnover, whichever
available only for this year; in April nance Ministry is less, will also be benefited.
2021, the Council will review & The Ministry of Finance on Monday said
decide action for 5th year: FM that businesses with an annual turnover GST e-invoicing from October
Sitharaman of up to Rs 40 lakhs are exempt from The Central government will notify a
Y There may be some states which GST and those with a turnover up to Rs new GST e-invoice scheme under which
may prefer to get hard-wired com- 1.5 crore can opt for the Composition businesses with turnover of Rs.500 crore
pensation rather than going to Scheme and pay only one per cent tax, and above will generate all invoices on
market to borrow more. Option Earlier, the GST exemption limit was Rs a centralised government portal start-
ing October 1, an official said. Earlier,
was tailor-made considering that 20 lakh, the ministry said.
the turnover threshold for businesses
states can take a call depending on "Now, Businesses with an annual turn- was set at Rs 100 crore. CBIC Principal
compensation they expect to over of up to Rs 40 lakh are GST ex- Commissioner (GST) Yogendra Garg said
come: FM Nirmala Sitharaman on empt. Initially, this limit was Rs 20 lakh. the existing Goods and Services Tax
GST compensation to states Additionally, those with a turnover up (GST) return filing system would be im-

Y During April-July 2020, total GST to Rs 1.5 crore can opt for the Compo- proved further by incorporating the fea-
compensation to be paid is Rs 1.5 sition Scheme and pay only 1% tax," tures proposed in the new system.
lakh crores, this is so because there the Ministry of Finance tweeted. "The GST Implementation Committee
was hardly any GST Collection in has recommended that we will go
April and May: Revenue Secretary, GST: Traders with turnover ahead with October 1 deadline (for e-
Finance Ministry invoice)... To begin with we will not do
of Rs 40 lakh can deregister
Y Annual GST compensation require- Traders with a turnover limit of Rs 40 it for Rs.100 crore and above, as we
ment is estimated to be around Rs lakh per annum can get themselves de- had notified. We will soon come out
3 lakh crores, and cess collection with a notification to make it Rs 500
registered from Goods and Service Tax crore from October 1 and as they
is expected to be around Rs 65,000 (GST) as the new limit is in place from
crores, leaving us with an annual new financial year, that began on Mon- stabilise, we will bring a date for Rs 100
crore turnover people," Garg said.
compensation gap of Rs 2.35 lakh day. Earlier the limit was Rs 20 lakh.
crores: Revenue Secy, Finance The limit for composition scheme for In November last year, the govern-
Ministry ment had said that from April 1 elec-
traders has also been raised from Rs tronic invoice (e-invoice) would be
Y Two-wheelers may merit to go to one crore to Rs 1.5 crore. mandatory for businesses with turn-
the GST council for a consider- Under new exemption limit, only traders over of Rs 100 crore. Later in March
ation: Finance Minister Nirmala
with annual turnover of Rs 40 lakh or 2020, the GST Council extended the
Sitharaman on being asked about above needs to be registered. Tax prac- implementation date to October 1. T

BANKING FINANCE | JULY | 2020 | 13