Lok Sabha Question No. 256 (STARRED), answered on 2018-08-03
Subject: Simplification of GST
Ministry: FINANCE
Asked by: BHARAT SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

……..

## LOK SABHA STARRED QUESTION No. 256 TO BE ANSWERED ON FRIDAY, THE 3 rd  AUGUST, 2018 SHRAVANA 12, 1940 (SAKA)

## QUESTION

## SIMPLIFICATION OF GST

## †*256. SHRI BHARAT SINGH:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  proposes  for  simplification  of  the  Goods  and  Services Tax (GST) and digitalization of businesses transaction relating to small traders/tradings in view of the problems being faced by the small traders under GST regime;
- (b) if so, the details thereof and the time by which it is likely to be completed; and (c) if not, the reasons therefor?

## ANSWER FINANCE MINISTER (SHRI PIYUSH GOYAL)

- (a) to (c) A Statement is laid on the table of the House.

***

## STATEMENT AS REFERRED TO IN REPLY TO PART A TO C OF LOK SABHA  STARRED  QUESTION  NO.  256  FOR  ANSWER  ON  3 rd   AUGUST 2018/  SHRAVANA  12,  1940  (SAKA)  REGARDING  SIMPLIFICATION  OF GST

- (a), (b) & (c)   Yes Sir. The Government has taken a number of initiatives for simplification of  GST  and  digitalization  of  business  transactions  relating  to  small  traders. Based on the recommendations of the GST Council made especially during its 22 nd , 27 th and 28 th meetings held on 6 th October 2017, 4 th May 2018 and 21 st July 2018 respectively, the following decisions have been taken :-
- i. Service providers making inter-State supplies whose aggregate annual turnover  does  not  exceed  Rs.  20  lakhs  have  been  exempted  from  the requirement of registration under GST vide notification No. 10/2017 Integrated Tax dated 13.10.2017.
- ii. Domestic supplies to holders of Advance Authorization (AA) / Export promotion  for  Capital  Goods  (EPCG)  and  Export  Oriented  Units (EOUs) are treated as deemed exports under section 147 of CGST Act, 2017. Further, the refund of tax paid on such supplies is given to either the supplier or the recipient of such supplies.
- iii. The  supply  of  taxable  goods  by  a  registered  supplier  to  a  merchant exporter  for  exports  shall  attract  a  total  GST  rate  of  0.1%.  This provision  has  been  made  effective  vide  notification  No.  40/2017Central Tax (Rate) dated 23.10.2017. This will reduce capital blockage for exporters.
- iv. Registered persons making supply of goods are now required to make payment of tax at the time of the issuance of invoice and not at the time when advances are received. This has been implemented vide issuance of notification No. 66/2017 - Central Tax dated 15th November, 2017.
- v. The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand is being increased to Rs. 20 Lakhs from Rs. 10 Lakhs.
- vi. Taxpayers  may  opt  for  multiple  registrations  within  a  State  or  Union territory  in  respect  of  multiple  places  of  business  located  within  the same State/Union territory.
- vii. The upper limit of turnover for opting for composition scheme is being increased from Rs. 1 crore to Rs. 1.5 crores.
- viii. The provisions  of  reverse  charge  mechanism  under  sub-section  (4)  of section  9  of  the  Central  Goods  and  Services  Tax  Act,  2017  and  subsection (4) of section 5 of the Integrated Goods and Services Tax Act, 2017 have been suspended till 30.09.2019.
- ix. Composition  dealers  shall  be  allowed  to  supply  services  (other  than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
- x. Taxpayers  who  have  a  turnover  upto  Rs.  5  crores  in  the  previous financial year shall be considered small and they shall have facility to file quarterly return with monthly payment of taxes on self-declaration basis. For such taxpayers, simplified returns have been designed called Sahaj  and  Sugam.  Taxpayers  who  have  no  purchases,  no  output  tax liability and no input tax credit to avail in any quarter of the financial year shall file one NIL return for the entire quarter.
- xi. A proposal to provide rebate in GST for payments made through digital mode to speed up digital payments was placed before the GST Council. Thereafter,  a  Group  of  Ministers  (GoM)  was  constituted  by  the  GST Council to look into the issue in further detail. A final decision in this matter would be taken by the GST Council based on the recommendations of the GoM.
- xii. The e-way bill system has been introduced nation-wide for inter-State movement of  goods  with  effect  from  1 st April,  2018  while  the  States were  given  the  option  to  choose  any  date  till  3 rd June,  2018  for  the introduction of the e-way bill system for intra-State supplies. Consequently,  all  the  States  have  notified  the  e-way  bill  system  for intra-State  supplies,  the  last  being  the  National  Capital  Territory  of Delhi which introduced it with effect from 16 th June, 2018. The e-way bill system has made it possible to transport goods across State borders without  the  hassle  of  documentation  and  long  waiting  time  at  State border check posts. There is no need to visit any tax officers or check posts for generation of e-way Bill as it can be easily generated round the clock on the common portal.