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Live Updates: Arun Jaitley Decisions Taken at 32nd GST Council Meet Shortly - GST Station

Live Updates: Arun Jaitley Decisions Taken at 32nd GST Council Meet Shortly

Live Updates: Arun Jaitley Decisions Taken at 32nd GST Council Meet Shortly

    04:19 PM

    ‘Bold Step’
    Tax expert Sachin Menon has called raising the threshold a bold step because it takes away more than half of the taxpayers in the bracket.

    I think it a bold step for the government to raise the threshold limit to Rs 40 lakh for the taxpayers and that would take away almost 50-60 percent of the total registered filers from the tax bracket and that makes sense because the total tax they are collecting from this tax bracket is equal to the cost they are incurring to collect it. I think it is just about 2-3 percent of the total revenue.

    04:07 PM

    Different Thresholds Won’t Make A Difference, Says AB Pandey
    Revenue Secretary Ajay Bhushan Pandey does not see any impact even if different threshold are adopted by the few states, he told BloombergQuint.

    “Today also we have different thresholds for special category states.”

    • More than 20 lakh dealers will be eligible to avail the benefits of today’s decisions.
    • Will have to see how many actually take advantage of the exemption limit hike or the Composition Scheme.
    • Exemptions don’t apply to inter-state sales; they will have pass on the input credit to the other states, and for that they’ll have to get registered.
    • He added that it is difficult to estimate how much revenue will be foregone from the various threshold limit hikes.

    He added that it is difficult to estimate how much revenue will be foregone from the various threshold limit hikes.

    03:51 PM

    Attempt To Match Pre-GST Regime, Says Ritesh Kanodia
    The moment a taxpayer opts for Composition Scheme, he will have to pay tax on the entire value, said Ritesh Kanodia, partner at law firm Dhruva Advisors.

    • By expanding Composition Scheme, the Government is trying to help small tax payers who are not in a position to file returns in time.
    • It’s an attempt to match the pre-GST regime.
    • Downside is that they pay tax at the composition rate and don’t get to claim credit.

    03:22 PM

    GST Council Raises GST Exemption Limit
    States will now be able to chose if they want to keep the GST exemption limit at Rs 20 lakh or Rs 40 lakh, Jaitley said.

    States which opt for Rs 20 lakh as exemption limit, will have the choice to change their exemption limit to Rs 40 lakhs, he said.

    “Rs 40 lakh will the exemption limit for all states, and Rs 20 lakhs for NE and hill states with a caveat that they can opt for higher threshold,” he added.

    03:15 PM

    GST Council Raises Exemption Threshold, Expands Composition Scheme
    The GST Council has approved the proposal that taxpayers with turnover up to 1.5 crore can avail of the Composition Scheme, starting April 1 2019.

    Here are the key highlights:

    • This has been brought in sync with erstwhile excise regime.
    • Those who use composition scheme from April 1 will pay tax quarterly, but file returns annually.
    • Those providing services and both Goods and Services with turnover up to Rs 50 lakhs will be entitled to avail composition Scheme.
    • Rate for services under composition scheme is fixed at 6 percent.
    • The 6 percent is lower than service tax and GST paid previously on services.

    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. Besides, a composition taxpayer is not required to keep detailed records that a normal taxpayer is supposed to maintain.

    A group of ministers – set up earlyin October – was tasked with revisiting the tax structure of different categories of restaurants with the aim of rationalising or reducing the rates, apart from making composition scheme more attractive for businesses.

    Headed by Assam Finance Minister Himanta Biswa Sarma, the GoM had recommended that the threshold limit of the composition scheme, that allows small businesses to pay taxes at a lower rate without getting any input tax credits, be raised to Rs 1.5 crore from Rs 1 crore currently.

    03:05 PM

    States To Have A Choice On Threshold, Says Sushil Kumar Modi
    Deputy Chief Minister of Bihar, Sushil Kumar Modi, said that the GST threshold has been increased to Rs 40 lakh from Rs 20 lakh. However, since Kerala and Chhattisgarh insisted on a Rs 20 lakh threshold, states will now have an option to chose either, according to his tweet.

    02:01 PM

    GST Registration Threshold Raised, Says Andhra FM
    The registration threshold for GST has been increased to Rs 50 lakh, Andhra Pradesh’s Finance Minister Y Krishnudu said on the sidelines of the meeting. As of now, entities fall under the gambit of GST if their turnover is Rs 20 lakh or above.

    The finance minister-led council is now discussing the GST rate on properties which are under construction, he added.

    08:34 AM

    Possible Tweaks
    The council is expected to discuss lowering GST on under-construction flats and houses to 5 percent, as well as hiking exemption threshold for small and medium enterprises.

    Finance Minister Arun Jaitley had said that the next meeting would consider rationalisation of tax rates on residential properties and raising the threshold limit for micro, small and medium enterprises from the current Rs 20 lakh.

    Also, the council would consider a “composition scheme” for small suppliers, apart from discussing a calamity cess as well as GST rates on lottery.

    Currently, the GST is levied at 12 percent on payments made for under-construction houses or ready-to-move-in flats where the completion certificate has not been issued at the time of sale.

    An official had told news agency PTI that this 12 percent GST rate ideally would have been partially offset by way of taxes paid on inputs by builders and hence the actual incidence of GST on under-construction home buyers would have been around 5-6 percent. The builders, however, are not passing on the input tax credit benefit to consumers, the official said.

    08:34 AM

    The GST Council is scheduled to meet today for the 32nd meeting. Jaitley, along with his state counterparts, is likely to announce tweaks to India’s 18-month-old indirect tax system after the meeting concludes.

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