GST Council gave a high sigh of relief to the Trade-industry on concessions but are doubtful whether it will be long-lasting or not. As per the Tax officials, the random changes and modifications in the rules created a self-contradictory situation due to which it is also possible that the discounts given will be taken back or will become neutral via other norms.
Many professionals during the discussion on the GST changes which were made recently on behalf of the Tax Practitioners in the Delhi Trade and Tax Department said that because of the decrease in the revenues, increasing compensation of the state, tax cut on half of the items does not indicate that everything will run like this even after one and a half years as GST came into existence on July 2017.
A few days back, the eligibility limit for GST registration to annual turnover was doubled to 40 lakh from 20 lakh but the e-way bill of Rs 50,000 is applicable on freight. The GST Consultant Rahul Gupta Talking spoke on the same. And if they cannot generate E Waybill how will small traders carry their goods after going out of the system?
CA Siddharth Shrivastav said that when the eligibility limit for GST registration to annual turnover was Rs 20 lakh, that time approx. 10 lakh people were paying the business tax and from 1.20 crore registered half of the dealers were below the 20 lakh threshold. Being out of the threshold means losing the business.
The composition scheme scope was increased to 1.5 crores in December 2018 said, CA Vipin Jain. And from 1.5 crores, more than 1.8 lakh dealers are not allowed to supply in other state but now they do not have to pay the annual returns which cannot be said till when it is possible. He also said that there is a shortfall in revenue in all the states and the collection of the tax of half the states has been decreased. In the last fiscal year, 45,000 crores compensation was given, which will mostly increase to 50,000 crores this year. In such situations, the governments will not sit ideal.
Also, the Council left the decision to accept the threshold of 40 lakh to the states and till now only 10 states are supporting this and voted. It is also expected that after the decision of the vote, many of the states might come back to 20 lakh threshold.
For the Compliance, there will be a big disturbance when the new GST returns process will return back to the track from June 2019 as per the experts.
