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The draft law which was pending for finalization since long got approval from GST Council Yesterday. The Key features that were incorporated in the draft law, got approval. Due to incorporation of such features there will be change in the way Industry does business. The law will mandate multiple registration for different states, single return for filling return under SGST, CGST, IGST & UTGST, Business entity having turnover upto 20 lakhs shall be exempt from registration & for special category states exemption is up-to 10 lakhs. A dealer can take up Composite scheme where the turnover does not exceed 50 lakhs. ITC shall be eligible on maximum of the items except few. Cross-utilization of credit shall be allowed for seamless flow of credit. The concept of Input Service Distributor shall be retained for Service provider, for proper utilization of credit. An agriculturist, to the extend of produce of agricultural products, shall not be mandated to take registration. Advance Ruling Authority provisions has been included in law to provide certainty in tax matters. Apple-ate mechanism has been incorporated in law to resolve petitions on a fast pace.
The Industry need to gear up itself for GST so that it can take benefit of Transitional Provisions, Provisions for Migration to GST, availing Credits in those acts which they are registered and making strategies for credits lying in those acts which he is not registered into.
Anti Profiteering provisions has been mentioned in the law to minimize the burden of tax incidence on consumers. Commissioner has been empowered to allow payment of taxes in installment, to mitigate financial hardship.