Key outcomes of 28th GST Council meeting – Big rate cuts for consumer durables, paints, cosmetics & simple return filing approved

Source: GST Council meeting     Jul 24, 2018

Amendment inGST Law


·        Upper limitof turnover for opting composition scheme increased from Rs. 1 Crore to Rs. 1.5Crore in the GST Law.

·        Compositiondealers to be allowed to supply services (other than restaurant services), forupto a value not exceeding 10% of turnover in the preceding financial year orRs. 5 lakhs, whichever is higher.

·        Thresholdlimit for registration under GST raised from Rs. 10 lacs to Rs. 20 lacs in theStates of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim andUttarakhand.

·        Mandatoryregistration is required for only those e-commerce operators who are requiredto collect tax at source.


·        Input TaxCredit scope widened and shall be now be made available for transactions:

a.       Most of the activities or transactionsspecified in Schedule III

b.      Motor vehicles for transportation of personshaving seating capacity of more than thirteen (including driver), vessels andaircraft

c.       Motor vehicles for transportation of moneyfor or by a banking company or financial institution;

d.      Services of general insurance, repair andmaintenance in respect of motor vehicles, vessels and aircraft on which creditis available; and

e.       Goods or services which are obligatory for anemployer to provide to its employees, under any law for the time being inforce.


·        No interest liability on account of reversal of ITC for non-payment tosuppliers within 180 days from date of invoice.

·        Registeredpersons may issue consolidated credit/debit notes in respect of multipleinvoices issued in a Financial Year

·        Amount ofpre-deposit payable for filing of appeal before the Appellate Authority and theAppellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores,respectively.

·        Commissionerto be empowered to extend the time limit for return of inputs and capital senton job work, upto a period of one year and two years, respectively.





·        The returnformat shall comprise of two main tables:

a.       One for reporting outward supplies and

b.      One for availing input tax credit based oninvoices uploaded by the supplier.

·        Invoices canbe uploaded continuously by the seller and can be continuously viewed andlocked by the buyer for availing input tax credit.

·        Option offiling quarterly return with monthly payment of tax in a simplified returnformat by the small tax payers with turnover upto Rs. 5 crores.

·        Quarterlyreturn shall be similar to main return with monthly payment facility but fortwo kinds of registered persons – small traders making only B2C supply ormaking B2B + B2C supply

·        Simplifiedreturns have been designed called Sahaj and Sugam. In these returns details ofinformation required to be filled is lesser than that in the regular return

·        NIL returnfilers (no purchase and no sale) shall be given facility to file return bysending SMS

·        Facility foramendment of invoice and also other details filed shall be done in the newreturn design "Amendment Return".




·        Proposal toopen the migration window for taxpayers, who received provisional IDs but couldnot complete the migration process has been approved.

·        Thetaxpayers who filed Part A of FORM GST REG-26, but not Part B of the said FORMare requested to approach the jurisdictional Central Tax/State Tax nodalofficers with the necessary details on or before 31 August, 2018.

·        Late feepayable for delayed filing of return for such pending cases will be waived.Such taxpayers are required to first file the returns on payment of late fees, andthe waiver will be effected by way of reversal of the amount paid as late feesin the cash ledger under the tax head.

·        Fabricsattract GST at the rate of 5% subject to the condition that refund ofaccumulated ITC on account of inversion will not be allowed. The GST Councilhas recommended for allowing refund to fabrics on account of inverted dutystructure only with the prospective effect on the purchases made after thenotification is issued.