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

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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

Relief for service providers

Challenges ahead for Restaurants

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

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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