Council, in its 22nd Meeting which was held 6 October 2017 in
the national capital under Chairmanship of the Union Minister of Finance and
Corporate Affairs, Shri Arun Jaitley has recommended the following facilitative
changes to ease the burden of compliance on small and medium businesses:
1. The composition scheme shall be made
available to taxpayers having annual aggregate turnover of up to Rs. 1 crore as
compared to the current turnover threshold of Rs. 75 lacs. This threshold of
turnover for special category States, except Jammu & Kashmir and
Uttarakhand, shall be increased to Rs. 75 lacs from Rs. 50 lacs.The turnover
threshold for Jammu & Kashmir and Uttarakhand shall be Rs. 1 crore. The
facility of availing composition under the increased threshold shall be
available to both migrated and new taxpayers up to 31.03.2018. The option once
exercised shall become operational from the first day of the month immediately
succeeding the month in which the option to avail the composition scheme is
exercised. New entrants to this scheme shall have to file the return in FORM
GSTR-4 only for that portion of the quarter from when the scheme becomes
operational and shall file returns as a normal taxpayer for the preceding tax period.
The increase in the turnover threshold will make it possible for greater number
of taxpayers to avail the benefit of easier compliance under the composition
scheme and is expected to greatly benefit the MSME sector.
2. Persons who are otherwise eligible for
composition scheme but are providing any exempt service (such as extending
deposits to banks for which interest is being received) were being considered
ineligible for the said scheme. It has been decided that such persons who are
otherwise eligible for availing the composition scheme and are providing any
exempt service, shall be eligible for the composition scheme.
3. A Group of Ministers (GoM) shall be
constituted to examine measures to make the composition scheme more attractive.
for Small and Medium Enterprises
4. Presently, anyone making inter-state
taxable supplies, except inter-State job worker, is compulsorily required to
register, irrespective of turnover. It has now been decided to exempt
those service providers whose annual aggregate turnover is less than Rs. 20
lacs (Rs. 10 lacs in special category states except J & K) from obtaining
registration even if they are making inter-State taxable supplies of services.
This measure is expected to significantly reduce the compliance cost of small
5. To facilitate the ease of payment and
return filing for small and medium businesses with annual aggregate turnover up
to Rs. 1.5 crores, it has been decided that such taxpayers shall be required to
file quarterly returns in FORM GSTR-1,2 & 3 and pay taxesonly on
a quarterly basis, starting from the Third Quarter of this Financial Year
i.e. October-December, 2017. The registered buyers from such small taxpayers
would be eligible to avail ITC on a monthly basis. The due dates for filing the
quarterly returns for such taxpayers shall be announced in due course.
Meanwhile, all taxpayers will be required to file FORM GSTR-3B on a monthly
basis till December, 2017. All taxpayers are also required to file FORM GSTR-1,
2 & 3 for the months of July, August and September, 2017. Due dates for
filing the returns for the month of July, 2017 have already been announced. The
due dates for the months of August and September, 2017 will be announced in due
6. The reverse charge mechanism under
sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of
section 5 of the IGST Act, 2017 shall be suspended till 31.03.2018 and will be
reviewed by a committee of experts. This will benefit small businesses and
substantially reduce compliance costs.
7. The requirement to pay GST on advances
received is also proving to be burdensome for small dealers and manufacturers.
In order to mitigate their inconvenience on this account, it has been decided
that taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not
be required to pay GST at the time of receipt of advances on account of supply
of goods. The GST on such supplies shall be payable only when the supply of
goods is made.
8. It has come to light that Goods
Transport Agencies (GTAs) are not willing to provide services to unregistered
persons. In order to remove the hardship being faced by small unregistered
businesses on this account, the services provided by a GTA to an unregistered
person shall be exempted from GST.
9. After assessing the readiness of the
trade, industry and Government departments, it has been decided that
registration and operationalization of TDS/TCS provisions shall be postponed
bill system shall be introduced in a staggered manner with effect from
01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018. This
isin order to give trade and industry more time to acclimatize itself with the
date for filing the return in FORM GSTR-4 by a taxpayer under composition
scheme for the quarter July-September, 2017 shall be extended to 15.11.2017.
Also, the last date for filing the return in FORM GSTR-6 by an input service
distributor for the months of July, August and September, 2017 shall be extended
Rules are being modified to provide relief to certain classes of registered