Understand the New Tax Rates and Formats of GST Return Filing
The 28th GST Council Meeting is organized on July 21st, 2018. It has established a simple GST return filing system for the taxpayers. Projected with the hope of reducing the rate of goods and services and simplifying the procedure of GST return filing, the council has also discussed some other crucial matters. Therefore, take a look at the formats of GST return filing and key deductions based on the council meeting.
Rationalization of Tax Rates
- 28th Council Meeting has reorganized relevant rates of taxes on over 50 goods along with 27 services.
- MoF declares GST to be farmer-friendly as it reduces the tax rates on ethanol, biofuel pellets, and handheld rubber rollers.
- The council permitted the GST Migration window proposal till August 31st for the taxpayers who have acknowledged provision ID by filing GST REG-26 Part-A but haven’t proceeded for migration. Initially, taxpayers have to file the return by late fee payment.
- Previously, the sanitary napkins covered 12% GST tax. However, the council decided to let off them from the GST charges. Apart from it, stone, wood, and marble were also exempted from GST tax.
- Change of GST rate for footwear: Previously, footwear with the sale price of INR 500 or more includes 18% tax. However, the council declared that footwear with a retail price of less than INR 1000 would be charged tax-rate of 5%, and others will charge 18%.
- Change of GST rate for particular handicraft items: The council has reduced tax rates of specified handicraft items, mostly under tax charges of 12% and 5% covering 18 goods in an amount to a particular level.
- Nearly 14 much goods were reduced from the tax charges of 28%. Household appliances such as washing machines, refrigerators, television, vacuum cleaners, and motor vehicles are now taxed at 18%. The tax charges on fuel cell vehicles were brought under 12%.
- Refund of input tax credit: The tax is now permissible to fabric manufacturers, which count up as enormous releases to the textile industry. It is predicted to improve the employment and formalization of the production through higher observance.
Simplified Formats of GST Return Filing
- The 27th Council Meeting has already accepted the design as well as recommendations by the Group of Ministers. The 28th council meeting has permitted the formats as well as the business process.
- The returns are requisite to be categorized periodically by small taxpayers and other categories of taxpayers. However, the tax payment would be monthly, along with the requirement of quarterly return filing.
- The return filing will involve details in two primary tables, namely, Input Tax Credit and Outward supplies.
- The return filing will depend on the invoices uploaded, and the report of the taxpayers may be adapted according to the transactions or automation activity of based filing.
- The process of “upload lock pay” will be valid to most taxpayers, where the suppliers can recurrently upload the invoices produced. The receiver can view and lock the invoice to benefit from ITC, Input Tax Credit.
- The competence to file returns can get SMS to simplify the agreement of taxpayers with NIL accountability.
- The council has offered the optional facility to the taxpayers having earnings below five crores for Quarterly GST return filing. For two kinds of persons, namely, small traders producing only B2C supply or making B2B + B2C supply, quarterly GST return will be the same as the primary return, including monthly payment facility.
Other Proposals
- The taxpayers having revenue up to INR 1.5 crore can avail of the composition scheme.
- The exemption limit of INR 10 lakh is increased to INR 20 lakh for the north-eastern states of Himachal Pradesh, Arunachal Pradesh, Sikkim, Meghalaya, Assam, and Uttarakhand.
- The taxpayers can choose for numerous registrations for different places of business within the same UT or state.
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