In the 23rd GST Council Meeting held on 10th November 2017, various measures to improve compliance and reduce the burden on taxpayers were announced.
Small businesses can enroll under the GST Composition Scheme to pay GST at a flat rate and file simplified quarterly GST returns. In the 23rd GST Council Meeting, various changes have been made to the GST Composition Scheme to make it more taxpayer friendly.
Increase in Threshold Limit for Registration under Composition Scheme
The annual aggregate turnover threshold for registering under the GST Composition Scheme has been increased now to Rs.2 crores. Thereaftereligibility for composition will be increased to R. 1.5 Crore per annum.
Uniform GST Rate fo 1% for Composition Scheme Dealers
The GST rate payable by GST Composition dealers has been harmonized for all taxpayers at 1%. However, no change has been announced on the GST rate for composition scheme for restaurants.
Supply of Services upto Rs.5 Lakhs
Taxpayers registered under the GST Composition Scheme can now supply services with a taxable value of upto Rs.5 lakhs per annum. This provision will immensely help small computer shop operators and dealers involved in providing services along with sales of a product.
Due Date of Filing GSTR – 4 Return Extended
GSTR 4 return must be filed by taxpayer registered under the GST composition scheme. GSTR4 is a quarterly return that was originally due on the 18th of October, January, April, and July.
Now, GSTR 4 for the July to September 2017 quarter will be due only on the 24th of December 2017. The due date for subsequent quarters will be announced by the GST Council at a future date.