Lok Sabha Question No. 2357 (UNSTARRED), answered on 2018-03-09
Subject: Trade Friendly GST
Ministry: FINANCE
Asked by: VIJAY KUMAR HANSDAK, HARISHCHANDRA DEORAM CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 2357

TO BE ANSWERED ON FRIDAY, THE 9 th  MARCH, 2018, 18 Phalguna, 1939 (SAKA)

## Trade Friendly GST

## 2357.  SHRI VIJAY KUMAR HANSDAK: SHRI HARISHCHANDRA CHAVAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Goods and Services Tax (GST) collections are declining and if so, the reasons therefor; and
- (b) the efforts made by the Government to ease the GST norms and make it trade friendly and the success achieved so far as a result thereof?

## ANSWER MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

- (a): The month-wise details of Central Goods and Services Tax (CGST), State Goods and  Services  Tax  (SGST),  Integrated  Goods  and  Services  Tax  (IGST)  and  Cess collected by the Government since July 1, 2017 is as follows:
- (b): Based on representations and feedback received from various stakeholders, the GST  Council  has  recommended  the  following  changes  in  the  GST  norms  and procedures to make it more trade friendly:
- i.  Increase  in  the  aggregate  annual  turnover  threshold  for  eligibility  under  the composition scheme from Rs. 75 lakh to Rs. one crore for 27 States (including Jammu & Kashmir and Uttarakhand).
- ii.  Increase  in  the  aggregate  annual  turnover  threshold  for  eligibility  under  the Composition  scheme from  Rs.  50  lakh  to  Rs.  75  lakh  for  Special  Category States  (as  specified  in  sub-clause  (g)  of  clause  (4)  of  article  279A  of  the Constitution) other than Jammu & Kashmir and Uttarakhand.
- iii.  Taxpayers having annual turnover of up to Rs. 1.5 crore in the previous year provided with an option to file quarterly Returns.
- iv.  Registered  persons  making  supply  of  goods  to  make  payment  of  tax  on issuance of invoice and not at the time when advances are received. v.  Suspension of the application of reverse charge mechanism under Section 9(4) of the CGST/SGST Acts, 2017 and Section 5(4) of the IGST Act, 2017 till 31 March, 2018 for all categories of registered persons. vi.  Uniform  rate  of  tax  @1%  under  composition  scheme for manufacturers and traders. The turnover of taxable goods to be considered for eligibility for the Composition scheme for traders. vii.  Supply of exempted services by composition taxpayer will be allowed and the same will not be taken into account while computing the aggregate turnover. viii.  Amount of late fee payable for delayed filing of return in Form GSTR-3B by a taxpayer whose tax liability for the month was 'Nil' reduced to Rs.20/- per day (Rs.10/-  per  day  each  under  CGST  &  SGST  Acts)  subject  to  maximum Rs.5000/- each under Act from October, 2017.
- ix.  The amount of late fee payable for delayed filing of return in Form GSTR-3B by other taxpayers reduced to Rs. 50/- per day (Rs. 25/- per day each under CGST & SGST Acts) subject to maximum Rs.5000/- each under Act from October, 2017.
- x.  Continuing the filing of the return in FORM GSTR-3B till March, 2018.

## (Amount in Rs. Crores)

| Month           | Collection   |
|-----------------|--------------|
| August, 2017    | 93,590       |
| September, 2017 | 93,029       |
| October, 2017   | 95,132       |
| November, 2017  | 85,931       |
| December, 2017  | 83,716       |
| January, 2018   | 88,929       |
| February, 2018  | 88,047       |

As a result of the sustained efforts made by the Government to make GST trade friendly, the implementation of GST in the country has been smooth so far.

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