PBS Group

Update on GST

1. New rates to be applicable from 15.11.2017 prospectively after notification.
2. 178 items shifted from 28% slab to lower slabs leaving apart sin goods and cess applicable goods.
3. Restaurants to have no ITC. Rate of tax shall be 5%. Restaurants in star hotels-18% with ITC. Other hotels -5% without ITC.
4. Outdoor catering -18% with ITC.
5. Gstr-3b to continue till 31.03.2018.
6. Nil returns to become very easy.
7. Only filing of GSTR-1 in current year for all taxpayers. Below 1.5 crore- 31st dec for July to sept, Qtr3- 15.02.2018, Qtr4- 30.04.18
8. Other taxpayers file GSTR 1 for July-oct by 31st dec 2017 then from November by 10th of next month - only GSTR 1.
9. Gstr-1 to be matched with GSTR-3B.
10. Penalty on late filing, nil return- Rs. 20 per day. Others- Rs. 50 per day.
11. Composition: July-sept- ITC-05 by 31.12.2017 and GSTR-04 by 24.12.2017
12. *TRAN-01 to be filed by 31.12.2017.*
13. Composition rate of 1% for manufacturers.
14. Composition scheme for services up to Rs. 5 Lakhs in addition to supply of goods.
15. Composition limit to be increased to Rs. 1.5 crores only upon amendment of law.
16. 1% composition only on taxable and not exempt goods. Dealer dealing inUpdate on GST

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RIDE THE WAVES....

CREDIT & DEBIT NOTE UNDER GST

Credit Notes/Debit Notes are issued with reference to a specific tax invoice for adjustment of tax liability. The provision relating to issue of Credit/Debit Notes are contained in Sec 34 of CGST Act, 2017 & Chapter VI of CGST Rules,2017.

In simple language, Credit Note is issued for decrease in tax liability while
Debit Note is issued for increase in tax liability.

A Credit note can be issued by a supplier only in the following circumstances:

(a) The taxable value shown in the invoice exceeds the taxable value of the supply;

(b) The tax charged in the invoice exceeds the tax payable on the supply;

(c) The goods supplied are returned by the recipient;

(d) The goods/ services are found to be deficient.

A debit note should be issued by a supplier in the following circumstances:

(a) The taxable value shown in the invoice is lesser than the taxable value of the supply; or

(b)The tax charged in the invoice is less than the tax payable on the supply

The details of debit note and credit note is required to be mentioned in periodic returns. If not shown, it is not considered for adjustment of tax liability.

Earlier anyone making an inter-state supply [except an inter-state job worker] was mandatorily required to enroll for GST, irrespective of the turnover. The Council announced on 22th meeting to exempt those service provider from registering, where the annual turnover is within 20 lakhs [ 10 lakhs for special category states, barring Jammu and Kashmir], in case of an inter-state supply of services too. The move will surely cut the compliance costs for smaller businesses.

*Latest update as per 22nd GST Council Meeting held on 6th Oct 2017
Threshold for composition scheme has been increased to 1 crore (from earlier 75 lakhs) and the GST rate are as follows:-