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GST Update for of exemption limit

GST Limit Revised to 40 Lakhs

The Government has announced the latest amendment in the Goods and Service Tax Rules (GST) on Thursday, 10.01.2019. India will absolve small businesses with annual sales of up to Rs 40 lakh from paying taxes under the GST. This decision will be advantageous to around 20 lakh firms. This change will be implemented from the month of April. The finance minister Arun Jaitley made the announcement after meeting the GST Council which empanels the federal and state finance ministers.

Here are the key points of the Goods and Service Tax Revision:

Late fees would be waived off for all the GST returns which was yet to be filed as on 22nd December 2018 up to 31st March 2019, for the months July 2017 up to September 2018.

Those missed to avail Input Credit on purchases can claim the Input Tax Credit for FY 2017-2018, the due date of filing the GSTR-3B which is of March 2019 i.e. 20th April 2019, subject to supplier provides relevant bills in GSTR-1 till 11th April, 2019 for monthly and 30st April, 2019 for quarterly filer.

The taxpayers can generate the e-way bill only if they have filed the GST returns for two consecutive tax periods.


        The new GST return filing system would be started on a trial basis from 1st April 2019, and will be implemented full-fledged from 1st July, 2019.

The cash ledgers for each tax heads will be merged into one single cash ledger for all tax head such as IGST, SGST/UTGST CGST and Cess.

The due date for filing of GST Annual Return (GSTR-9) and Reconciliation statement ( GSTR-9C) after GST Audit would be extended till 30th June 2019.

E-commerce operators who haven’t filed the GSTR-8 for the period 1st October 2018 till 31st December 2018, the dates will be extended to 31st January 2019.

The filing of ITC-04 for the months July 2017 to December 2018, the dates will be extended to 31st March 2019.

Simplification of Form GSTR-9 & GSTR-9C

  • All monthly/quarterly GST Returns must be filed before filing Annual returns.
  • ITC cannot be availed through FORM GSTR-9 and FORM GSTR-9C.
  • In GSTR-9, Table 8A-ITC as per GSTR-2A would auto-populate all invoices related to FY 2017-18 irrespective of the month of filing GSTR-1 by suppliers.
  • HSN code would be declared only for those inward supplies whose value independently accounts for 10\\% or more of the total value of inward supplies.
  • If any additional payments are to be made, they can be done through the FORM GST DRC-03 in cash.
  • Verification by a taxpayer who is uploading the reconciliation statement would also be included in FORM GSTR-9C.
  • Outward or Inward supplies would be declared in the Annual returns as ‘supplies made during the financial year’ and not ‘supplies, as declared in GST returns filed’
  • Value of ‘No Supply’ can be declared under Exempt supplies section at Table 5D, 5E or 5F of GSTR-9

  1.     Changes in GST Rates w.e.f. 1st January, 2019


Sr No.

List of Goods/Services

Changes in Tax rate


Vegetables provisionally preserved but unsuitable for immediate consumption

5\\% to Nil


Vegetables cooked/uncooked via steamed, frozen or boiled (Branded)


Parts of manufacturing renewable energy devices falling under chapter 84, 85 or 94 or tariff



Music Books

12\\% to Nil


Natural cork

12\\% to 5\\%


Fly ash Blocks


Walking Sticks


Marble Rubble

18\\% to 5\\%


Agglomerated cork

18\\% to 12\\%


Cork roughly squared or debugged


Articles of Natural cork


Movie Tickets value less than or equal to Rs. 100


Premium on Third Party Insurance on Vehicles


Accessories for Handicapped Mobility vehicles

28\\% to 5\\%


Power Banks

28\\% to 18\\%


Movie Tickets Value more than Rs. 100


Video Game consoles, equipments used for Billiards and Snookers and Sport related Items of HSN code 9504


Retreated & used pneumatic Rubber Tyres


Colour Television Sets & monitors up to 32 inches


Digital & Video Camera recorders


Pulleys, Transmission shafts, cranks and gear boxes under HSN 8483


Tax rate on Air travel of pilgrims reduced*


* Bank services to a holder of Basic Savings bank account and Pradhan Mantri Jan Dhan Yojana (PMJDY) account to be made exempt

* For travel by non-scheduled/chartered  for Religious Pilgrimage which are facilitated by GoI under Bi-lateral agreements

  1. Refund:

A single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on a pilot basis. The details for the same would be finalized in the coming days.

      Changes in the filing of Form RFD-01 A*:

  1. Documents to be annexed to the form can now be uploaded online.
  2. Types of the GST refund that can be applied in this form shall include Excess tax paid, refund by assessment orders, Tax paid on an intra-State supply which is consequently held to be inter-State supply and vice-versa.


Clarifications for case-specific ITC queries would be issued soon. Some complex issues such as refund of ITC accumulated on account of inverted duty structure, the time permitted for availing ITC on invoices, the disbursal of refunds within the stipulated time, refund of accumulated ITC of compensation cess, etc, will be clarified promptly.

  1. Window for completing the GST migration process 

Taxpayers are given time till 31st March 2019 to file the GST returns in GSTR-1 and GSTR-3B for the period July 2017 till February 2019.

  1. The Threshold limit

The GST Council has decided to increase the GST registration threshold limit to Rs 40 lakh from Rs 20 lakh. (Rs 20 lakhs for Northeast States).

  1. Annual Return for Composition Tax payers

The GST Council has allowed composition taxpayers to pay GST quarterly and file returns annually.

  1. Composition Scheme to Service Sector

The Composition Scheme is now made available to the Service Sector. The GST rate for services will be 6\\% and applicable up to Rs. 50 lakhs Turnover only.

  1. Composition scheme limit increased to Rs. 1.50 crore

Limit of Annual Turnover for composition scheme has been increased to Rs. 1.50 crore with effect from 1st April 2019.

  1. Introduced Calamity cess for the first time

The Kerala Government will impose a 1\\% calamity cess for 2 years on intra-state sales.

NOTE: The changes mentioned above will come into effect only once notified by CBIC/ GSTN updating the portals.

This Article is Written by CA Vipul Shah, Company V V Shah & Co, Location Mumbai Maharashtra.

Responsibility for the information and views set out in this [report/study/article/publication…] lies entirely with the authors.

Author Bio        Vipul Shah

NameCA Vipul Shah

Qualification: CA in Practice

Company: V V Shah & Co,

Location: Mumbai, Maharashtra,

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Simi rebello 6/3/2019
Greeting I have a small question I have a gst no which is cancelled due to non filling of return .I have been filling my gst account regularly till October 2018 but I have filed it in the wrong window and the amount is also showing so how do I rectify it please help
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