GST law review committee against including all services under composition scheme

Suggests threshold limit to be maintained at Rs.15 million

by Nidhi Bhati

The GST council’s law review committee is not in favour of including all services, barring restaurants, under the ambit of composition scheme in the GST regime. The panel also suggested that GST Council should maintain the current composition scheme threshold limit at Rs.15 million and not extend the scheme to businesses which are engaged in inter-state supply of goods and services. Among other recommendations, the law review committee has suggested to keep threshold limit of services provided by a composition dealer to be set at 10 per cent of the taxable turnover or Rs.500,000, whichever is higher and recommends a separate composition rate not exceeding 18 per cent for services supplied by composition dealer by way of job work. These recommendations will be taken up for discussion at the 25th GST council meeting to be held on 18 January 2018.

References
1. http://www.financialexpress.com/economy/panel-against-including-all-services-in-gst-composition-scheme/1011218/
CMIE STATISTICS
Unemployment Rate
Per cent
4.8 +0.0
Consumer Sentiments Index
Base September-December 2015
97.2 -0.2
Consumer Expectations Index
Base September-December 2015
96.5 0.0
Current Economic Conditions Index
Base September-December 2015
98.2 -0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Mar 17 Jun 17 Sep 17 Dec 17
New projects 4.01 2.11 1.18 0.84
Completed projects 1.95 0.86 1.03 0.90
Stalled projects 0.74 2.67 0.67 0.92
Revived projects 0.86 0.30 0.29 0.20
Implementation stalled projects 0.33 0.69 0.73 0.58
Updated on: 23 Jan 2018 9:20AM
Quarterly Financials of Listed Companies
(% change) Mar 17 Jun 17 Sep 17 Dec 17
All listed Companies
 Income 10.2 9.7 7.9 10.7
 Expenses 11.9 10.0 9.2 10.3
 Net profit 16.1 -19.8 -20.0 16.1
 PAT margin (%) 6.0 5.3 5.4 14.2
 Count of Cos. 4,460 4,389 4,313 183
Non-financial Companies
 Income 11.8 10.3 7.7 10.6
 Expenses 15.6 10.6 7.8 10.5
 Net profit -2.3 -25.2 -7.9 15.0
 PAT margin (%) 6.2 5.2 6.1 14.4
 Net fixed assets 6.9 9.0
 Current assets 2.7 78.0
 Current liabilities 8.8 10.6
 Borrowings 4.9 10.1
 Reserves & surplus 6.3 4.8
 Count of Cos. 3,448 3,407 3,348 135
Numbers are net of P&E
Updated on: 23 Jan 2018 9:21AM
Annual Financials of All Companies
(% change) FY14 FY15 FY16 FY17
All Companies
 Income 10.0 5.3 1.4 6.6
 Expenses 9.9 5.4 1.5 7.1
 Net profit -2.5 1.6 -12.6 18.7
 PAT margin (%) 3.1 3.2 2.9 5.7
 Assets 12.3 9.4 9.8 8.3
 Net worth 9.6 8.7 10.8 7.2
 RONW (%) 6.1 6.1 5.1 8.3
 Count of Cos. 24,439 24,353 22,049 8,816
Non-financial Companies
 Income 9.7 4.5 0.5 6.4
 Expenses 9.4 4.6 -0.3 7.6
 Net profit -3.1 -5.5 12.5 11.8
 PAT margin (%) 2.2 2.1 2.6 5.3
 Net fixed assets 11.7 13.3 15.6 7.3
 Net worth 8.2 7.1 11.2 5.3
 RONW (%) 5.0 4.9 5.4 9.0
 Debt / Equity (times) 1.1 1.1 1.1 0.8
 Interest cover (times) 2.0 1.9 2.0 2.9
 Net working capital cycle (days) 69 67 65 52
 Count of Cos. 19,688 19,805 18,467 6,761
Numbers are net of P&E
Updated on: 21 Jan 2018 12:27PM

Data added for HPI at Assessment prices and HPI at Market prices