Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 13-12-2017 Last Replied Date:- 13-12-2017 – Goods and services tax was made effective from 1st July 2017. The law when introduced has made a sea-over change as to taxability of services which can be explained in the following points to large extent- The threshold exemption limit was changed from ₹ 10 lakhs to ₹ 20 lakhs. However, this limit is totally different from the present law in terms of its implication. The limit of ₹ 20 lacs is prescribed for registration. But if registration is obtained even before the crossing of threshold limit of ₹ 20 lakhs then the registrant supplier needs to charge GST on the supplies made by it. In order to avail of exemption of ₹ 10 lacs under the existing law, the turnover of previous year was also considered and the said turnover of previous year needs to be below ₹ 10 lakhs. But the limit of ₹ 20 lakhs in the GST law is independent to the pre
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roviders have been shifted from present half-yearly to monthly. This has resulted in a major increase in compliance on the part of service providers. Favouring Waves The above brief sample changes in the compliance on the part of service providers has resulted in hue and cry among the service providers, precisely among small service providers. The problems faced by them was represented to the GST council through various major bodies ICAI, Tax bar associations, AIFTP etc to name a few. Another important source of raising problems these days is a social networking portal – Twitter . Considering representation and the problem tweeted, GST Council has made several changes to smoothen the process and compliances for service providers listed as under- Service providers providing services below ₹ 20 lakhs but supplying inter state supplies needs compulsory registration and losing competitive edge over the service providers providing services below ₹ 20 laksh by supplying only intr
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ate turnover of ₹ 150 lakhs further rationalize this system of tax payment to enable payment of tax on cash basis. It is proposed that the composition dealers shall be allowed to avail of threshold exemption of ₹ 5 lakhs per year in provision of services by them. This will ease the work of small dealers who provide petty services like installation, fitting etc in addition to the sale of goods. Before the proposal of this modification these suppliers could not avail of composition benefit. But now composition benefit will be available to them even as a service provider. Before Parting Although the government has brought many changes in the taxability of services from what initially the law was, however, radical changes are required in the present amended GST law so as to enable smooth functioning at the part of the service providers. To name a few:- (a) There should be a uniform rate of taxes on service so as to reduce classification issues to a large extent. (b) Definitions
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