Special concern for the benefit to MSME sector

Writer: CS Payal Kataria

In the days to come, small tax payers registered under GST can enjoy following benefits:

Simplified returns
o Sahaj & Sugam
o NIL Return (No purchase, No sale) can be filed by sending SMS
o Facility to upload invoices continuously by the seller and can be continuously viewed and locked by buyer for availing ITC
o Most welcome facility i.e. amendment return. It will be possible to amend invoice and also other details filed in the return. Even payment would be allowed to be made through the amendment return.

Registration
o Registration to remain temporarily suspended while cancellation of registration is under process, thereby relieved the registered person of continued compliance under GST law

Composition Scheme
o Under composition scheme, upper limit of turnover for opting composition scheme raised from 1 Cr. to 1.5 Cr.
o Composition dealer to be allowed to supply services (other than restaurant services) for up to value not exceeding 10% of turnover in the preceding financial year, or INR 5 lakhs whichever is higher

Reverse Charge Mechanism (RCM)
o Levy of GST or RCM on receipt of supply from un-registered suppliers, to be applicable to only specified goods or services or both. In case of certain notified classes of registered person

Job Work
o To empower commissioner to extend the time limit for return of inputs and capital goods sent by principal to job worker up to a period of 1 year and 2 years, respectively.

Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon.

Readers are advised to consult the professional for understanding applicability of this writeup in the respective scenarios. While due care has been taken in preparing this writeup, the existence of mistakes and omissions herein is not ruled out. No part of this writeup should be distributed or copied (except for personal, non-commercial use) without our written permission.

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