New GST Return Rules and GST Council Updates 2018

GST Council Chaining the GST Rates & GST Updates  :

  • Quarterly Returns approved for taxpayers with turnover less than Rs 5crore
  • Sanitary Napkins exempted from GST going forward
  • No decision on 1% sugar cess
  • GST on bamboo flooring decrease to 12%
  • GST on hotels would now be on actual tariff & not declares tariff
  • Ethanol for Oil Marketing Companies now at 5% vs 18% earlier
  • 5% GST ceiling on footwear increase from Rs 500 to Rs 1000
  • GST on paints & varnishes, wall putty decrease from 28% to 18%
  • GST on all leather items decrease from 28% to 18%
  • GST on consumer electronics – TV (up to 27″), Washing Machine, Refrigerator, mixer, juicer, grinder decrease from 28% to 18%
  • GST on special purpose vehicles, work truck, trailer decrease from 28% to 18%

The 27th Meeting GST Council has approved some principles of New GST Return Rules During Based on Recommendation of Group of Ministers on IT simplifications. The Key elements of  GST New Rules are as follows.

New Gst Return Rules:

New GST Return Rules

One monthly Return :

Except for the composite dealers, all the dealers should file the one monthly returns. Returns are to be filed as per due dates are given respectively, the load on IT systems composition dealers and dealers having nil transactions have a facility to file quarterly returns

Unidirectional Flow Of Invoices:

To avail input tax credit by the seller has to upload unidirectional invoices at any time during the month. The buyer can also see the upload documents by the seller in GSTR-2. The purchase invoices need not be uploaded invoices for B2B (Business to Business) Transactions shall need to use HSN at 4 Digits or more to get uniformity in reporting.

Simple Return Design and Easy in Interface :

The system calculates the tax liability and input tax credit automatically to upload the invoices the taxpayer shall be given with user for friendly IT Interface and offline IT also

No Automatic reversal of Credit :

There will not be any automatic reversal of any ITC (Input Tax Credit) from the buyer on Non-Payment of tax by the seller. In case of Non-Payment of tax by the seller, the recovery shall be made by the seller. An expectation of the case the automatic reversal can be made by the revenue authorities in the following cases

  • Missing Dealers
  • closure if Business by the supplier
  • Supplier not Having adequate Assets

Yuu May Also Like This

Solve Error Failed To Establish Connection To The Server Kindly Restart The emsigner In Gst Portal

Due Process for Recovery and Reversal :

The Notices and orders for the recovery and reversal will be sent online human interference will be reduced

Supplier side Control:

Unloading of invoices or non-payment of tax above the threshold amount shall be blocked to reduce misuse of input tax credit facility.

Transition :

They shall be three stages transition to the new system.

Stage I: Stage I shall be the present system of filling of return GSTR 3B, GSTR1, GSTR-2, GSTR-3, Shall continue to remain suspended. The stage I will continue for a period of not exceeding 6 months by while being ready.

Stage-II: In stage II the new returns will have a facility for the invoice date upload and facility of claiming ITC on the self-declaration basis.

Stage-III: Stage III as the not approved content of Return and Implementation

The Forms, Designs will be designed under the due diligence of the Law

Leave a Comment