GST Update – CBIC notifies return due dates and applicability of pronouncements made by GST council in Jan. 2019

Highlights of notifications issued by CBIC dated 7th March 2019 are as below.

Increase in turnover threshold limit for dealers under composition scheme

Threshold limit of aggregate turnover for composition scheme dealers u/s.10 of CGST Act has been enhanced to Rs. 1.5 crore during previous financial year. This will be applicable effective from 1st April, 2019. For 7 notified states (Arunachal Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, Sikkim, Tripura, Uttrakhand), threshold limit shall be Rs.75 lacs. Notification no. 14/2019 – Central Tax supersedes the earlier notification 08/2017 – Central Tax dated 27-06-2017.

Due date for filling 3B return

Due date for filling 3B return for the months of April to June 2019 has been prescribed as 20th day from the end of respective month. Every registered person furnishing the return in FORM GSTR-3B of the said rules shall, subject to the provisions of section 49 of the said Act, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the said Act by debiting the electronic cash ledger or electronic credit ledger, as the case may be. Notification 13/2019 – Central Tax.

Due date for filling GSTR-1 return (monthly)

Due date for filling GSTR-1 return for the months of April to June 2019 has been prescribed as 11th day from the end of respective month for registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year. Time limit for furnishing details of inward supplies as per section 38(2) and return for discharge of tax liability 39(1) of CGST Act will be notified later depending on smooth functioning of new mechanism of return filling which is proposed to be made operational effective from July 2019. Notification 12/2019 Central Tax.

Due date for filling GSTR-1 return (quarterly)

Due date for filling GSTR-1 return for the months of April to June 2019 has been prescribed as 31st July, 2019 for registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year. Time limit for furnishing details of inward supplies as per section 38(2) and return for discharge of tax liability 39(1) of CGST Act will be notified later depending on smooth functioning of new mechanism of return filling which is proposed to be made operational effective from July 2019. Notification 11/2019 Central Tax.

Threshold limit for mandatory registration increased to Rs.40 lacs

Any person, who is engaged in exclusive supply of goods (within state) and whose aggregate turnover in the financial year does not exceed forty lakh rupees are not required to get registered under GST. This will be made effective from 1st April, 2019. However, this will not be applicable to following class of persons. Notification 10/2019 – Central Tax.

• Persons required to get registered under act compulsorily irrespective of turnover u/s.24 of CGST Act including persons engaged in inter-state supply of goods
• Persons engaged in supply of ice cream and other edible ice whether or not containing cocoa, pan masala, tobacco and manufactured tobacco substitutes
• Persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand
• Persons opt for voluntary registration u/s. 25(3) of CGST Act
• Previously, notification 5/2017 was issued under section 23(2) which exempted those who are entirely supplying exempted goods or services but are liable to registration only due to their liability to tax under 9(3). But now, this exemption appears to override section 22. It is to be noted that where aggregate turnover includes income by way of interest or discount on loans and advances the benefit of this exemption notification cannot be taken. ‘Exclusively engaged in supply of goods’ is a condition of the notification and section 22 can be invoked if this condition is violated on any day in the year and tax from Rs.20 lacs upto the date when this condition stands breached may become due without any availability of input tax credit.

  Composition scheme for supplier of services

Composition scheme has been notified for the service providers having Lacsturnover in the preceding year up to Rs.50 lakh. First supplies of goods or services or both the aggregate turnover of fifty lakh rupees made on or after the 1^st day of April in any financial year, by a registered person can avail benefit of composition scheme subject to following conditions. Tax rate applicable in case of taxable supplies by the composite dealer will be 6% (CGST &  SGST @ 3% each). This will be made effective from 1st April 2019. Notification 2/2019 Central Tax

• Supplies are made by registered person having turnover up to Rs.50 lakh during previous financial year and not eligible to pay tax as composite dealer u/s.10
• Registered person was not engaged in making any supply which is not leviable to tax
• Registered person is not engaged in making inter-state supply
• Registered person is neither a casual taxable person nor a non-resident taxable person
• Tax rate applicable for all supplies will be 6% notwithstanding different tax rates prescribed under section 9 or 11 of CGST Act
• Registered person is not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under section 52
• Registered persons engaged in supply of ice cream and other edible ice whether or not containing cocoa, pan masala, tobacco and manufactured tobacco substitutes
• Where more than one registered persons are having the same Permanent Account Number, union territory tax on supplies by all such registered persons is paid @6%
• The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
• Other conditions as applicable to casual taxable person engaged in supply of goods will also be applicable to supplier of service viz. the supplier will not issue tax invoice, declaration on bill of supply etc.
• The registered person under composition scheme shall pay tax on all inward supplies for which he is liable to pay tax under Reverse Charge Mechanism as per section 9(3) and 9(4) of CGST Act. So composition dealer is also liable to pay tax under reverse charge mechanism as applicable to regular category of tax payer.

It has also been clarified as part of explanation that supplies from the first day of financial year (i.e. 1st April, 2019) will be considered for the purpose of eligibility of the person to register under composition scheme. But for the purpose of determination of tax payable under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act.

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