In this blog post we explain about some key points that have major impact on SME after GST arrives as according to the news come in nov 2017.
Taxpayers providing any exempted service (like, extending deposits on which Interest is received) are eligible to apply for the Composition Scheme.
Services provided by Goods Transport Agency (GTA) to unregistered persons will be exempted from GST and will not be taxed.
Registered persons with an annual turnover less than Rs. 1.5 Crore will be required to file FORM GSTR 1, GSTR 2 and GSTR 3 and pay taxes on a quarterly basis. Quarterly filing and payment for such taxable persons will start from the quarter October to December 2017. However, registered buyers from the above taxpayers can avail Input Tax Credit (ITC) on a monthly basis.
For taxpayers having annual turnover up to Rs. 1.5 Crores, the requirement to pay GST at the time of receipt of advances on account of sales of goods has been suspended. Now, they will be required to pay GST only at the time of supply of goods.
Reverse Charge Mechanism under Section 9(4) of CGST Act and under Section 5(4) of IGST Act has been suspended till 31st March 2018.
- Those have annual turn over less than 20 lakhs per annum does not need to register under GST.
- Those have annual turn over less than 1 crore(less than 75 lakhs for states like Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh) can register under composition scheme and have to pay GST on quarterly basis.
- Tax rate for those who register under composition scheme are:
- For traders-1%
- For manufacturers-2%
- For restaurants-5%
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