Indian Tax || New Benefits to Small Businesses in GST.

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New Benefits for Composition levy operators. 

Amendment of
section 10. (CGST ACT)



 
In the Central Goods and Services Tax Act, 2017
(hereinafter referred to as the Central Goods and Services Tax
Act), in section 10,––
12 of 2017. 


 (a) in sub-section (2), in clause (d), the words “goods or”
shall be omitted; 


 (b) in sub-section (2A), in clause (c), the words “goods
or” shall be omitted.

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Extract from section 10:

(2) The registered person shall be eligible to opt under sub-section (1), if: — 

(a) save as provided in sub-section (1) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II; 

(b) he is not engaged in making any supply of goods or services which are not leviable to tax under this Act;

 (c) he is not engaged in making any inter-State outward supplies of goods or services; 

(d) he is not engaged in making any supply of goods or services through an electronic commerce operator who is required to collect tax at source under section 52; and 

(e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council; and

(2A) Notwithstanding anything to the contrary contained in this Act, but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, not eligible to opt to pay tax under sub-section (1) and sub-section (2), whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding three per cent. of the turnover in State or turnover in Union territory, if he is not 

(a) engaged in making any supply of goods or services which are not leviable to tax under this Act; 

(b) engaged in making any inter-State outward supplies of goods or services; 

(c) engaged in making any supply of goods or services through an electronic commerce operator who is required to collect tax at source under section 52;

(d) a manufacturer of such goods or supplier of such services as may be notified by the Government on the recommendations of the Council; and 

(e) a casual taxable person or a non-resident taxable person: Provided that where more than one registered person are having the same Permanent Account Number issued under the Income-tax Act, 1961, the registered person shall not be eligible to opt for the scheme under this sub-section unless all such registered persons opt to pay tax under this subsection.”;
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Author analysis:

From the above text it is clearly understandable that the word goods is removed from respective clauses, as to pass on the benefit to small traders working with the help of  e-commerce operators like Amazon, Flipkart,etc.

Earlier, it is set of rules that composite taxable person can not sales goods to another state as a result they are only doing intra state transactions of sale means local sales within the state. 

In 48th meeting of GST council, it was announced that relaxation will be allowed to composite e-commerce dealer for supply of goods out side the state. Union budget 2023 finance minister provides the applicability of this changes via amending section 10 of CGST Act.

From 01.10.2023 the inter state sale of goods by Composite GST dealer is allowed. Now small dealers are also having more avenues to expand their business online by this changes IN LAWS. 

Government is stepping up towards more growth of MSME sector and e commerce market suppliers as following it’s ultimate goal of sustainable economy and Digital India.    


SUPPLY OF GOODS IS POSSIBLE TO SALE ONLINE BY COMPOSITE DEALER FROM 01.10.2023.


to know more details, feel free to contact us: GST Expert  

image source:thenewsminute.com

     


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