Mixed Reactions on the 23rd GST Council Meet in Guwahati!
Guwahati witnessed the 23rd GST Council meet held by GST Council on 10th November 2017. Let’s scroll down to have a glance on some of the vital updates from the meet up:
Composition Scheme - The Amendments:
- For manufacturers & traders 1 % would be the GST Rate
- Limit for the Composition Scheme to be increased to Rs 1.5 Crore although can be extended to Rs 2 Crore later.
- 1% Composition tax 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
- Extension of Composition Returns, GSTR-4 due date to 24th December
- No to inter-state sales for Composition dealers; Input tax benefit not allowed.
GSTR Compliance - Giving a Sigh of Relief:
- GSTR-1 and GSTR-3B to be filed by all businesses till March 2018.
- Committee of Officers will work out for the GSTR-2 and GSTR-3 filing dates for July 2017 to March 2018.
- File Quarterly GSTR-1with turnover under Rs 1.5 Cr
- File Monthly GSTR-1 with turnover above Rs 1.5 Cr
- GSTR-3B to be filed by all businesses by 20th of next month till March-2018.
![GST Update](images/Blog/img14.jpg)
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 for Restaurants with 5% GST rate cut with no input tax credit.
Other Taxpayer Relief Measures:
- Reduction in the Late Fees– Reduced from Rs 200 per day to Rs 20 per day in caes of delay in filing of NIL returns.
- Credit on Late Fee– Penalty has been waived off for GSTR-3B of July, Aug and Sept. And if paid for these months, it will be credited back in Electronic Cash Ledger under 'Tax' that can be consumed to make GST payments.
- Introduction of Manual filing for Advance Ruling application
- Exemption from GST on Export of services to Nepal and Bhutan, allowing to claim a refund of input tax credit paid, if any.
- 31st December 2017 to be the last date for filing and revision of TRAN-1. Revision to be done only once.
- Timelines for 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 Due Dates Extensions:
Return |
Revised Due Date |
Old Due Date |
GSTR-5 (for Non Resident) |
15th Dec 2017 |
Earlier of 20th August 2017 or 7 days from date of registration |
GSTR-4 (for Composition Dealers) |
24th Dec 2017 |
18th October 2017 |
GSTR-6 (for Input Service Distributor) |
31st Dec 2017 |
13th August 2017 |
ITC-04 (for job work) for quarter of Jul-Sep |
31st Dec 2017 |
25th October 2017 |
TRAN-1 |
31st Dec 2017 |
30th September 2017 |
GST Rate Changes:
- 1% Composition Rate for manufacturers & traders
- 28% slab pruning cost to government = 20,000 Crore
- Restaurants within hotels [room tariff <7,500 - 5%] without ITC
- Restaurants within hotels [room tariff >7,500 ] still 18% with ITC
- Perfume, Shampoo, Tiles, Watches have been Reduced from 28% to 18% w.e.f. 15th Nov 2017
- Idli Dosa Batter, Desiccated Coconut, Coir Products have been reduced from 12% 5%
- Khandsari Sugar, Dried Vegetables, Duar Meal have been reduced from 5% Nil
- Wet grinders, tanks have been reduced from 28% 12%
- Refined Sugar, Diabetic Food, Condensed milk have been Reduced from 18% 12%
- 18% with ITC for Outdoor catering