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- Sept||31st Dec 2017|
|Oct-Dec||15th Feb 2018|
|Jan- Mar||30th April 2018|
For turnover of more than Rs 1.5 cr:
|July to Oct||31st Dec 2017|
|Nov||10th Jan 2018|
|Dec||10th Feb 2018|
|Jan||10th Mar 2018|
|Feb||10th Apr 2018|
|March||10th 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
|Return||Revised Due Date ||Old Due Date|
|GSTR-4 (for Composition Dealers)||24th Dec 2017 || 15th November 2017|
|GSTR-5 (for July to October)||11th Dec 2017||Earlier of 20th August 2017 or 7 days from date of registration|
|GSTR-5A ((for July to October)||15th Dec 2017||20th November 2017|
|GSTR-6 (for July 2017)||31st Dec 2017||13th August 2017|
|ITC-04 (for job work) for quarter of Jul-Sep||31st Dec 2017||25th 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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