Changes in Income tax & GST applicable from 01st April 2019

Changes in Income tax & GST applicable from 01st April 2019:

The new financial year has just begun, and there has been a lot of changes in Income tax & GST. So in this article, we aim to discuss few changes, relevant to most of the taxpayers.

We are covering the changes made in Income tax Act and GST.

A. Changes in Income tax Act

1. Rebate u/s 87 A

The tax rebate available under Section 87A has been increased from Rs. 2,500 to Rs. 12,500. However, it would only be available to a resident individual whose total income does not exceed Rs. 5 lakhs.

2. Standard deduction from salary

The standard deduction of Rs 50,000 for the salaried taxpayer was made available. This deduction would be in lieu of the transport allowance & medical reimbursement.

3. No tax on the notional rent on the second self-occupied house

From F.Y. 2019-20, an assessee can claim annual value as nil in respect of two-self occupied house properties. However, there is no change in aggregate limit for deduction in respect of interest on housing loan.

Read more changes in Income tax here Changes in Income tax & GST applicable from 01st April 2019 – Money Boat

B. Goods & Service tax Act

1. Due date of GSTR-9

The last date to file annual return in form GSTR-9 and form GSTR-9A, for the financial year 2017-18 has been extended to 30th June 2019. The forms are now available at the portal. It is also to be noted that these forms once filed, cannot be revised.

2. Composition scheme for supplier of services & mixed suppliers

A composition scheme for supplier of services having an annual turnover up to Rs 50 lakhs in the preceding year has been introduced w.e.f. 01.04.2019. The rate of tax will be 6%. The benefit of this scheme shall not be available to service providers who are rendering services in multiple States or through e-commerce websites or suppliers engaged in non-GST supply.

The CBIC has notified that when a supplier opts for this scheme, the unutilized balance of input tax credit available in the electronic credit ledger of such taxable person shall lapse.

3. Increase in threshold limit for composition scheme

The existing threshold limit on gross turnover in previous financial year to avail of the composition scheme has been increased from Rs. 1 crore to Rs. 1. 5 crores. In respect of special category States (North-Eastern States), the threshold limit has been increased from Rs. 50 lakhs to Rs. 75 lakhs.

4. Increase in threshold exemption for registration

This threshold limit has been increased to Rs. 40 lakhs only if supplier is engaged in supply of goods. In other words, any person who is engaged in supply of goods and his total turnover in the current financial year does not exceed Rs. 40 lakhs, he is not required to take registration under GST.

Note: This is subject to state government opting for the higher threshold.

5. Last chance to avail Input Tax Credit relating to F.Y. 2017-18

The registered person can avail input tax credit of GST paid from July, 2017 to March, 2018, latest by the due date of furnishing the return for the month of March, 2019 i.e. by April 20, 2019.

Disclaimer: The above article is only for the purpose of academic discussion and should not be construed as any legal opinion in any matter whatsoever.

The author is a CA in practice at Delhi and can be contacted at: E-mail: abhinandansethia90@gmail.com

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