Page 11 - Banking Finance February 2018

GST UPDATE

GST

NEWS
NEWS
NEWS
NEWS
NEWS

Government notifies 1% rate for GST composition Government eases norms
scheme for rectification of GST re-
The government has notified 1% GST rates for manufacturers who have opted turns
for composition scheme as well as easier norms for trad-
ers opting for it. The finance ministry has notified the The Government has permitted busi-
changes decided by the GST Council. The notification nesses to rectify
stipulates that manufacturers who have opted for com- mistakes in their
position scheme will now have to pay 1 percent Goods monthly returns -
and Services Tax (GST) as against 2 per cent earlier. GSTR-3B - and
adjust tax liability, a move that will
Besides, traders opting for composition scheme would now have to pay the tax
help them file correct returns with-
at 1 per cent on their turnover of taxable supplies. So far, they were paying GST out fear of penalty.
on total turnover, which included turnover from exempt supplies like fruits, veg-
etables. Over 15 lakh businesses opted for composition scheme, which allows This relaxation will give an opportunity
them to pay taxes at a concessional rate and makes compliance easy under the to businesses to claim tax credit cor-
Goods and Services Tax (GST) which rolled out from July 1. There are over 90 rectly by rectifying the mistakes made
lakh businesses registered under GST. initially while computing GST liability.
Businesses have been finding it difficult
While a regular taxpayer has to pay taxes on a monthly basis, a composition
supplier is required to file only one return and pay taxes on a quarterly basis. to assess tax liability correctly after
Also, a composition taxpayer is not required to keep detailed records that a India moved to Goods and Services Tax
normal taxpayer is supposed to maintain. Composition scheme is open for manu- (GST) regime with effect from July 1.
facturers, restaurants and traders whose turnover does not exceed Rs. 1.5 crore. Industry bodies have been demand-
ing relaxation of norms and easier
GSTN introduces option for monthly, quarterly filing of forms compliance provisions to help busi-
nesses adapt to the new system of
The Goods and Services Tax Network (GSTN), the IT backbone of the new tax
regime, said it has put a new function on its portal to filing tax returns online.
allow taxpayers choose the frequency of filing GSTR1 The CBEC in a recent communication
form on quarterly or monthly basis. Taxpayers with an- to field officer has said "as return in
nual aggregate turnover up to Rs.1.5 crore in the previ- Form GSTR-3B does not contain pro-
ous financial year or anticipated in the current financial visions for reporting of differential fig-
year can avail the option of filing quarterly returns. ures for past month(s), the said fig-
Form GSTR1 summarises all the sales of a taxpayer. This has been done as per ures may be reported on net basis
decision taken in the 23rd GST council meeting. After giving their option, tax- along with the values for current
payers can file GSTR 1 for the relevant return periods, GSTN said in a statement. month itself in appropriate tables...".

BANKING FINANCE | FEBRUARY | 2018 | 11

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