In order to provide for simplified returns, raise the threshold limit for the composition scheme and help the MSME sector in the GST Tax System, 4 bills were introduced by the Government on Tuesday in the Lok Sabha. A draft framework for the simplified return was put in the public domain on Monday, July 30, 2018.
The Central GST (Amendment) Bill, the Integrated GST (Amendment) Bill, the GST (Compensation to States) Amendment Bill, and the Union Territory GST (Amendment) Bill are likely to be passed in the current session of Parliament.
The Finance Minister said that the primary aim of these amendments is to help the MSME Sector and Small Traders. Simplified tax return forms – Sahaj and Sugam will be introduced to make the return filing process easy and simpler.
The following changes shall take place once the bill is passed:
- E-commerce operators (ECO) will not be required to obtain registration under GST if their turnover is less than INR 20 lakhs.
- ITC will now be allowed on Food, Transport and Insurance Facilities provided to employees, which was earlier in the blocked credit.
- The threshold limit for Composition Scheme will be raised to Rs 1.5 crores which is currently Rs 1 crore.
- Also, MSMEs with a turnover of upto Rs 50 lakhs shall be allowed to file quarterly returns.