Tuesday, Oct 26, 2021 | Last Update : 05:28 AM IST

  Business   In Other News  14 Jan 2019  Soon, nearby retailers won’t charge you GST

Soon, nearby retailers won’t charge you GST

THE ASIAN AGE.
Published : Jan 14, 2019, 12:07 am IST
Updated : Jan 14, 2019, 12:07 am IST

Mention of GST registration status to become mandatory.

The move to make mention of GST registration status mandatory will help check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer, an official said.
 The move to make mention of GST registration status mandatory will help check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer, an official said.

New Delhi: To aid consumers, the Central government is looking at measures to ensure that the dealers and service providers opting for composition scheme do not charge GST from buyers.

In one of the measures, revenue department is planning to make it mandatory for composition dealers and service providers to declare their GST registration status in invoices to ensure that they do not charge any tax from buyers.

 

This move is expected to check the widespread practice of composition dealers of charging GST from purchasers and not depositing it with the exchequer, an official said.

“Central Board of Indirect Taxes and Customs is mulling at a proposal that businesses will have to mandatorily mention in the invoice generated by them that they are composition dealers,” said sources.

The revenue department is planning to launch a campaign to educate consumers that the dealers opting for composition scheme are not required to charge GST from purchasers.

“We will educate consumers that they should not pay GST while buying goods from composition scheme dealers,” said government officials.

 

Under the GST composition scheme, traders and manufacturers are required to pay only 1 per cent GST on goods which otherwise attract a higher levy of either 5, 12 or 18 per cent. Such dealers are also not permitted to charge GST from the purchaser.  Of the 1.17 crore businesses registered under GST, about 20 lakh have opted for composition scheme.  

“It has come to the notice of the government that a large number of composition dealers are levying GST at higher rates and not depositing it with the government,” said sources.

To ease compliance burden for small businesses, the GST law provides for composition scheme under which traders and manufacturers with an annual turnover of up to Rs 1 crore can pay 1 per cent GST. This threshold will increase to Rs 1.5 crore from April 1.

 

Also the GST Council, headed by Arun Jaitley and comprising state ministers, in its meeting on January 10 permitted service provider and those dealing in both goods and services with a turnover of Rs 50 lakh to opt for composition scheme.

Tags: central government, gst