With every passing day, the Government comes up with frequent GST amendments. Businesses need to keep themselves updated with the numerous GST amendments. In the present article, we will discuss the provisions attached to the GST latest amendments applicable 1st April 2019 onwards   

Let us understand each of the below GST amendments in brief.

1. Increase in the threshold limit for exemption from obtaining registration in case of a supplier of goods

The threshold limit for exemption from obtaining GST registration in India has been enhanced from INR 25 Lakhs to INR 40 Lakhs. Though, the enhanced threshold limit exemption is available only to ‘supplier of goods’ and not to the ‘supplier of services’.

Relevant notification and the provisions are explained hereunder – 

Relevant notification –   

Notification no. 10/2019 – Central Tax dated 7th March 2019.  

Relevant provisions –   

Persons satisfying the following conditions shall be exempt from obtaining GST registration–  

Condition No. 1 – Person should be exclusively engaged in the supply of goods; and 

Condition No. 2 – Aggregate turnover in the financial year does not exceed INR 40 Lakhs.

If both the above conditions are satisfied, such person shall be exempt from obtaining registration.

Above exemption is not available to the below-mentioned categories of persons (i.e. such persons are required to obtain registration regardless of their turnover).

  • Persons who are mandatorily required to obtain compulsory registration under section 24 of the CGST Act.  
  • Persons who are engaged in supplies of  specified items*   
  • Persons who are engaged in making ‘intra-state’ supplies in the following states;
    • Arunachal Pradesh 
    • Manipur
    • Meghalaya 
    • Mizoram
    • Nagaland 
    • Puducherry 
    • Sikkim
    • Telangana
    • Tripura
    • Uttarakhand
  • Persons who are voluntarily registered under the GST Act and;
  • Registered persons who are willing to continue their existing GST registration.   

It is important to note that the above mentioned  GST amendments are applicable from 01.04.2019. 

2. Increase in threshold limit for existing composition schemes 

In the case of existing composition scheme, the threshold limit has been enhanced from INR 1 Crore to INR 1.5 Crore. Relevant notification and provisions are being explained hereunder;

Relevant notification –   

Notification no. 14/2019 – Central Tax dated 7th March 2019.  

Relevant provisions –  

  • An eligible registered person whose aggregate turnover in the previous financial year doesn’t exceed INR 1.50 crores has an option to pay tax under the composition scheme.   
  • An eligible registered person whose aggregate turnover in the previous financial year doesn’t exceed INR 75 Lakhs has an option to pay tax under the composition scheme in case such person is  being registered in the following States;
  • Arunachal Pradesh
  • Meghalaya
  • Manipur
  • Mizoram
  • Sikkim
  • Nagaland
  • Tripura
  • Uttarakhand.   
  • Persons engaged in manufacturing of the Specified items* will not be eligible to opt for the composition scheme.

It is important to note that the above referred GST amendments are applicable from 01.04.2019. 

3. Introduction of Composition scheme for service providers and mix suppliers

For the very first time, the composition scheme benefit is made available to  service providers and  mixed suppliers (i.e. persons engaged in both the supplies of goods and services). The provisions of the new composition scheme are highlighted hereunder.

Relevant notification –

Notification no. 02/2019 – Central Tax (Rate) dated 7th March 2019 .

Relevant provisions –

Benefits are available to first supplies of goods or services or both up to an aggregate turnover of INR 50 Lakhs made on or after 1st April in any financial year by a registered person.   

Composition tax rate – 6% (3% CGST + 3% SGST).  

Conditions for availing the benefit –

Following is the list of conditions which the registered person needs to fulfil in order to avail the benefit of referred composition scheme.

  • Aggregate turnover in the previous financial year was INR 50 Lakhs or below;  
  • A person should not be eligible to pay tax under section 10 (1) of the CGST Act;  
  • A person should not be engaged in making any supplies which are not taxable;
  • A person should not be engaged in making any inter-state outward supplies;   
  • A person should not be a casual taxable person nor a non-resident taxable person;  
  • A person should not be engaged in rendering any supplies through an e-commerce operator who is required to collect tax at source i.e. TCS under section 52 of the Act; and   
  • A person should not be engaged in making supplies of the Specified items*   

Other conditions –  

  • The registered person who opts for the scheme is also required to pay tax @ 6% for all such registered person having the same PAN. In other words, the tax rate 6% would apply to all the branches having the same PAN.   
  • The registered person opting for the scheme will not be eligible to collect any tax from the recipient, on the supplies made by him.  
  • The registered person opting for the scheme will not be entitled to claim any input tax credit (ITC).   
  • The registered person opting for the scheme is required to mention the following words on the top of the bill of supply.

‘taxable person paying tax in terms of notification no. 02/2019 – Central Tax (Rate) dated 7th March 2019, not eligible to collect tax on supplies’.   

The registered person option for the scheme will be liable to pay tax under the Reverse Charge Mechanism (RCM) at the applicable rates.   

*Specified Items  

Sr. No.  Tariff Number  Description   
a   2105 00 00  Ice cream and other edible ice, whether or not containing cocoa
b   2106 90 20  Pan Masala  
c   24  All goods (tobacco and manufactured tobacco substitutes)  

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