32nd GST Council Meeting

The 32nd GST Council Meeting was held on 10th January 2019 at New Delhi. The meeting started at the Vigyan Bhawan, Delhi. Meeting was chaired by the Union finance minister Arun Jaitley and state wise finance ministers.

The Council took major decisions and made many changes that would be effective from 1st April 2019.

  • Committee set up for real estate sector to go through the issues and submit a report.

A 7-member Group of Ministers (GoM) shall be constituted to examine the proposal of composition scheme to boost the residential segment of the real estate sector. Also, a GoM shall be constituted to examine the GST Rate structure on lotteries.

  • GST Council permits the Kerala Govt to levy 1 per cent calamity cess for 2 years to collect funds for rehabilitation

The Council has approved the levy of cess on intrastate supply of goods and services within the state of Kerala at a rate not exceeding 1% for a period of up to 2 years. The purpose of levying cess is to mobilize revenue for natural calamities.

  • 6 per cent GST rate applicable to the Composition scheme for service providers and turnover up to 50 lakh per annum.

A composition scheme shall be made available to services providers, with an aggregate turnover in the preceding financial year up to INR 50 lakhs. Under this scheme, the service providers shall be liable to pay GST at the rate of 6% (3% CGST + 3% SGST).

  • The above scheme shall also be applicable to suppliers of goods and services, who are not presently eligible for composition scheme for goods.
  • Post CGST amendment, only manufacturers and traders having a turnover of services of up to INR5 lakhs or 10% of total turnover, could opt for composition scheme. Composition scheme is not available to a person who is only a service provider other than a restaurant service provider.
  • The above recommendations shall be made effective from 1 April 2019.
  • The registration threshold limit under GST increased from earlier INR 20 lakh to INR 40 lakh. Kerala & Chattisgarh given option to remain in any limit either 20 lakh or 40 lakh. Also, Northeastern and hilly states threshold limit doubled more than 20 lakhs.

The threshold limit for obtaining registration will be increased from INR20 lakhs to INR40 lakhs for the supplier of goods.

The option is given to the states to opt for a higher threshold of INR40 lakhs. The states have to take a decision on this within a week.

The threshold for registration of supplier of services has not been changed. The same continues at INR20 lakhs with a lower threshold in certain special category states.

The above recommendation shall be made effective from 1 April 2019

  • It was also announced that a free billing and cost accounting to be made available for the small taxpayers to reduce compliance cost.

Free Accounting and Billing Software shall be provided to small taxpayers by GSTN

  • GST Council increased the limit of annual turnover for composition scheme taxpayers to 1.50 Crores, effectively from 1 April 2019 under which the composition taxpayers allowed to file returns annually and pay tax on a quarterly basis.

Currently, composition dealers are required to file GSTR4 every quarter and pay tax on a monthly basis. In order to simplify the compliance process under composition scheme, the Council has decided that the taxpayers would need to file one return on annual basis with quarterly payment of tax (along with a simple declaration).

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