We all know about the new indirect tax regime in the country that had taken the taxation world by storm with its implementation in the year 2017. The Goods and Service Tax Act, this came as a replacement for all the four different taxation laws that governed the indirect taxes in the country. It repealed all of them and came as one unitary law. And with this change, there was a lot to change. There were new GST registration number to be taken by the taxpayers, new GST returns and GST bill format to be complied with, new ways of GST payment, and a lot more. And that is not it. There are still continual changes, and you need to keep up with them by following the latest GST news.
But where do you get this news? Can you get it in the newspapers? Well, yes, to quite some extent. The newspapers publish the latest developments in the GST Act. But they are not as comprehensive to tell you everything in detail. For the details, you need something more vast. Probably the internet, because that is where you can get any and every information you need. But surfing the web for the right information you need can be hectic. But not when it comes to information about GST. For that, you only need to go to the GST website.
What is the GST website?
The GST website is an online platform that gives out the latest GST news through announcements and notifications. Also, you can find the complete GST Act on this website and have every information you need about GST on it.
Moreover, the website also features an online portal that offers you various services related to GST. It is like a GST office at your doorstep. With this portal, you can conveniently take your GST registration, download your GST certificate, make GST payments, and file GST returns. SO, everything that took up your time requiring you to make rounds at the tax office is conveniently covered on this virtual platform that you can visit more conveniently just by sitting at your own office.
So, with the GST website, you get convenience and ease for keeping up with the GST compliances, and also you would never miss out on any information regarding the Act if you visit the website at regular intervals. And besides that website, you can always find the latest GST information with us. Here are some of the most important announcements, the latest developments in the Act that you surely must be aware of as a taxpayer under the GST Act.
Latest Changes in the GST Act
Registration is one of the most crucial compliances the taxpayers need to make under the GST Act. However, not every person needs to get done with it. The GST Act has specified certain categories of persons who need to take the GST registration mandatorily. Moreover, the Act has also prescribed the limits as to turnover and value of goods and services exceeding, which will attract the registration requirements.
The Act recently increased these limits from the turnover of Rs. Ten lakhs to that of Rs. Twenty lakhs. So, now only the taxpayers and service providers whose value of goods and services supplied exceeds Rs. 20lakhs have to get registration under the GST Act. This increase in the registration limit has worked extremely positively for the small businesses and has helped them carry on their operations more smoothly.
A composition scheme is a scheme for small businesses and dealers where they can opt for paying a lower amount of tax at a certain lower percentage of the value of goods or services supplied. With such schemes, there is a drastic decrease in the burden of tax payments on the small dealers and taxpayers.
And the Act has just made it better with the increase in the threshold limit from one crore to one crore and fifty lakh rupees. So, earlier when only the taxpayers having a turnover of up to Rs one crore were eligible for opting for the scheme, this turnover limit has increased to Rs one crore and fifty lakhs, thus expanding the scope for such small taxpayers.
Moreover, earlier, only the suppliers were eligible to opt for the scheme. But with the latest amendment, the GST Act has made this scheme applicable even for the service providers as well.
However, while you do not have to due to the composition scheme, there is also a disadvantage of the scheme. And that is the ineligibility to claim the input tax credit. A person who has opted for composition scheme cannot avail of the input tax credit. Moreover, even the other business that makes a transaction with such dealers have to leave out on the input tax credit. So, mostly the people with high revenues, for whom the input tax credit matters, do not prefer to make transactions with the dealers who have opted for the composition scheme.
But it is still a wonderful scheme for the small dealers if we look on the brighter and positive part of it. Any dealer can opt for the scheme at the start of the financial year and take up the benefit of paying lower rates of taxes while retaining higher profits for self. The scheme is valid for one fiscal year, and after that, you have to opt for it again. Also, once you have opted for the scheme, you become bound by it for the complete financial year. So, always make efforts to understand everything, analyze the viability of the scheme for you in the long run, and then make the decision about whether you want to take up the composition scheme or not.
These were two of the latest and major developments in the GST Act. You can find other latest GST news as well on the GST website. The GST Act is a new Act with lots of new things like the GST registration number, GST return, GST payments, GST bill format, GST schemes, and a lot more. So, you need to continuously keep up with all these changes, so that you are assured that you are in all-time compliance with the Act.