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23rd GST Council Meet Highlights : List of all Rules & Rate Changes

Updated on: Jul 21st, 2021

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6 min read

Check out the Latest Updates on 35th GST Council Meet Here

GST Council held its 23rd GST Council meet on 10th November 2017. Here are the important updates of the meet based on the press release. All these Changes will be made prospectively from 15th November 2017. Some changes are yet to be officially notified and are marked with ‘*’

Changes in Composition Scheme

  • Composition scheme limit to be increased to Rs 1.5 crore (can be extended to Rs 2 crore later)*.
  • 1 % GST rate for manufacturers & traders*.
  • Composition tax of 1% on turnover of taxable goods (turnover of exempted goods to be excluded)*.
  • Those supplying goods and services (services not exceeding Rs 5 lakhs in total) eligible for compositions scheme*.
  • Composition Returns, GSTR-4  due date for the period July to September extended to 24th December 2017.
  • Composition dealers cannot make inter-state sales. Input tax benefit not allowed.

Relief in GSTR compliance

  • All businesses to file GSTR-1 and GSTR-3B till March 2018.
  • GSTR-2 and GSTR-3 filing dates for July 2017 to March 2018 will be worked out later by a Committee of Officers
  • Turnover under Rs 1.5 Cr to file quarterly GSTR-1
  • Turnover above Rs 1.5 Cr to file monthly GSTR-1
  • All businesses to file GSTR-3B by 20th of next month till March 2018.

Extension of GSTR-1 filing Due Dates

For turnover upto Rs. 1.5 cr:

Period (Quarterly)Due dates
July- Sept31st Dec 2017
Oct-Dec15th Feb 2018
Jan- Mar30th April 2018

For turnover of more than Rs 1.5 cr:

MonthDates
July to Oct31st Dec 2017
Nov10th Jan 2018
Dec10th Feb 2018
Jan10th Mar 2018
Feb10th Apr 2018
March10th May 2018

Relief for service providers

All service providers with turnover up to Rs 20 lakhs exempt from GST registration. Including those who supply inter-state or supply through e-commerce operator, such service providers do not have to register.

Challenges ahead for Restaurants

GST rate cut to 5% with no input tax credit.

Other taxpayer relief measures

  • No GST to be paid on advances received on supply of goods by regular taxpayers.
  • Late Fees reduced – For delayed filing of NIL tax GSTR-3B,  late fee reduced from Rs 200 per day to Rs 20 per day. Other taxpayers need to pay a late fee of Rs. 50 per day of delay in filing GSTR-3B.
  • Late Fee credit – Late fees for GSTR-3B of July, Aug and Sept waived. Any late fees paid for these months will be credited back to Electronic Cash Ledger under ‘Tax’ and can be utilized to make GST payments.
  • Manual filing for Advance Ruling application to be introduced.
  • Export of services to Nepal and Bhutan are exempt from GST.
  • Export of services to Nepal and Bhutan are allowed to claim a refund of input tax credit paid if any*.
  • TRAN-1 can be filed and revised till 31st December 2017. Revision to be done only once*.
  • Timelines for the filing of GSTR-2 and GSTR-3 for July to March 2018 to be worked out by Committee of Officers. However, subsequent month filing of GSTR-1 will not be impacted.

Others GSTR filing extensions

ReturnRevised Due Date                                 Old Due Date
GSTR-4 (for Composition Dealers)24th Dec 2017  15th November 2017
GSTR-5 (for July to October)11th Dec 2017Earlier of 20th August 2017 or 7 days from date of registration
GSTR-5A ((for July to October)15th Dec 201720th November 2017
GSTR-6 (for July 2017)31st Dec 201713th August 2017
ITC-04 (for job work) for quarter of Jul-Sep31st Dec 201725th October 2017

GST Rate Changes

  • GST Rate for manufacturers and traders under composition scheme is 1 % *.
  • Reduced from 28% to 18% W.e.f. 15th Nov 2017 – Shampoo, Perfume, tiles, watches
  • Reduced from 28% to 12% – Wet grinders, tanks
  • Reduced from 18% to 12% – Condensed milk, refined sugar, diabetic food
  • Reduced from 12% to 5% – Desiccated coconut, idli dosa batter, coir products
  • Reduced from 5% to Nil – Duar meal, khandsari sugar, dried vegetables
  • For Restaurants within hotels, and room tariff less than Rs. 7,500 the GST rate is 5%. Also, the credit of  ITC paid on inward supplies cannot be taken.
  • For Restaurants within hotels, and room tariff greater than Rs. 7,500 the GST rate is 18% and credit of  ITC paid on inward supplies can be availed.
  • Outdoor catering continues to be charged at 18% with the availability of ITC on inward supplies.
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Quick Summary

The 35th GST Council Meet introduced changes in the Composition Scheme, extended deadlines for GSTR filing, provided relief measures for service providers and restaurants, and reduced late fees. GST rate changes include lower rates for various items. Service providers with up to Rs 20 lakhs in turnover are exempt from GST registration. Export of services to Nepal and Bhutan is exempt from GST, and TRAN-1 can be filed and revised until December 31, 2017.

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