The Goods and Service Tax (GST), which was stated as the complex indirect tax regime, is likely to simplified from April 1. The changes are likely to help large number of middle class traders. Besides, the reduction in GST rates on real estate will ease up the sector. After rolling out GST on July 1, 2017, several changes were introduced in the tax regime. However, the widely demanded changes will come into effect from new financial year starting from Monday.
The major changes are as follow.
The threshold limit for exclusive suppliers of goods has been increased to Rs 40 lakh (Earlier, it was Rs 20 lakh) with certain conditions. Now, they are not required to take registration under GST to the extent of that threshold.
The limit of annual turnover in the preceding financial year for availing composition scheme for goods shall be increased to Rs 1.5 crore. This will include composition scheme for service providers (or mixed supplier of goods and services), composition scheme for service providers (or mixed suppliers) with a tax rate of 6% (3% CGST +3% SGST) having an annual turnover up to Rs 50 lakh.
Beneficiaries will be small service providers like work contractors, property rentals, architects, mixed supplier of goods and services to pay GST at nominal rate@6% under composition. Presently, they were required to pay GST @ 18%. No need to pay GST unless one crosses the threshold limit of Rs 20 lakh for first time in any year.
As per decisions of GST Council, traders and people-friendly changes will be applicable from April 1. The most pleasing change for common man is reduction in GST rates for real estate sector.
JP Saraf, secretary (GST), Tax Practitioners Association Indore.