GST Highlights from Union Budget 2020

  • The filing of GST returns has undergone a prime changes in the past two and a half years. Still it will have an another significant change with the new system, effective from 1st  April 2020. Hence, the government may recommend and pass the necessary changes to the GST law and its corresponding rules on the GST Returns.
  • Several industries, including the auto sector and health-care, have demanded that the GST Rates be re-looked into on certain items. But the matter is more likely to be pushed in the agenda of the GST Council only. A revenue augmentation committee has already been formed in the previous Council meeting and looking at aspects of bringing a new GST rate structure. But with the industry demands that resonating across India, these matters will be cautiously handled.
  • The GST rate cut on motor vehicles from 28% to 18% is a highly requested by one of the several associations. The health-care sector is counting on the Budget 2020 for getting the health-care services tagged as Nil rated. Moreover, the key players
    also expecting the classification of the health insurance premium as a zero-rated item under GST.
  • Following these, restaurants, wood dealers and garments have also come up the similar requests, looking for an uniform rate imposition. Among other items, the GST rates on marketing investments, subsidized training programs, online education system, occupational insurance, auto LPG and its conversion kits might receive a reduction.
  • GST is a historic structural reform and resulted in ₹1 lakh crore gains to consumers and helped transport and logistics sectors.
  • Simplified GST return for GST will be introduced from April 2020
  • It will make return filing simple with features like SMS based filing for nil return, return pre-filling, improved input tax credit flow and overall simplification.
  • Dynamic QR-code is proposed for consumer invoices. GST parameters will be captured when the payment for purchases is made through the QR-code.
  • Introduction of GST regime, there has been an increase in the number of indirect taxpayers, besides a large increase in voluntary registrations.
  • An average household now saves about 4% of its monthly spend on account of reduced GST.
  • In the last two years, we have added more than 60 lakh new tax payers. There has been extensive engagement with stakeholders. 16 lakh new taxpayers added to the system.
  • The person involved/benefited out of fake ITC shall also be liable for a penalty of 100% of the tax involved.
  • Composition scheme restricted to taxpayers making the inter-state supply of service, supplies not leviable to GST and supplies through e-commerce operator where TCS is deductible.
  • The date of debit note will be standalone considered for availing input tax credit, delinked from the date of invoice.
  • A provision inserted for cancellation of voluntary GST registration for distinct persons.
  • Power to condone the delay in applying for revocation of cancellation has been provided to the additional commissioner and for a period of 30 days.
  • Supply of fish meal provided a retrospective GST exemption from 1st July 2017 to 30th September 2019.
  • The Union Budget 2020 may call on the GST Council to re-look into this compliance requirement.



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