GOOD & SERVICES TAX (GST)

July 1, 2019

To mark two years of GST implementation on 1st July 2019, the Finance Ministry unveiled a new return filing mechanism besides a host of other reforms to simplify the indirect tax system.

Further reforms in current fiscal (2019-20):

New return system:
- Introduction of New Return System on trial basis from 01.07.2019 and on mandatory basis from 01.10.2019.
- SAHAJ & SUGAM Returns for small taxpayers are proposed.
Single Cash Ledger: Rationalisation of Cash Ledger in such a manner that earlier 20 heads are merged into 5 major heads. There is only one Cash Ledger for Tax , interest, penalty, fee & others .
Single Refund Disbursing: The Central or State Government which sanctions refund disburses all four major heads of refunds namely CGST, SGST, IGST and Cess.
Threshold limit for goods: Threshold Limit of Rs 40 Lacs is offered of suppliers of goods as per the choice of States.
Composition Scheme for Services: Composition Scheme for small service providers up to annual turnover of Rs 50 lacs with a tax rate of 6%
E-invoicing system: Electronic invoicing system in a phase-wise manner for B2B transactions is proposed to be introduced.
GSTAT: GST Appellate Tribunals are being established at various State Headquarters and area benches also.