Recommendations made by the GST Council in the 23rd meeting at Guwahati on 10th November, 2017

[Ashwarya Agarwal]

I The return filing process is to be further simplified in the following manner:

 

1. FORM GSTR 3B to be filed every month by ALL TAXPAYERS by 20th of the succeeding month till March, 2018;

 

2. FORM GSTR 1 to be filed to be filed in following manner till March, 2018 by taxpayer having:

 

a. Annual Aggregate T/O upto 1.5 Crore - QUARTERLY basis:

   

Period	Dates
Jul- Sep	31st Dec 2017
Oct- Dec	15th Feb 2018
Jan- Mar	30th April 2018

 

b. Annual Aggregate T/O more than 1.5 Crore - MONTHLY basis:

 

Period	Dates
July - October	31st Dec 2017
November	10th Jan 2018
December	10th Feb 2018
January	10th Mar 2018
February	10th Apr 2018
March	10th May 2018

 

3. Filing of FORM GSTR-2 and FORM GSTR-3 for the period of July, 2017 to March 2018 would be worked out by a Committee of Officers. However, filing of GSTR-1 will continue for the entire period as mentioned above without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.

  

4. Late fee for delay in filing of FORM GSTR 3B for the Month of July, August & September 2017 was waived. For the assessee who had already paid the late fee, it shall be re-credited in their cash ledger as 'TAX' instead of 'fee' so that it can be used to discharge their future tax liabilities;

 

5. Late fee for delay in filing of FORM GSTR 3B  with NIL data for the Month of October 2017 and onwards will be ₹ 20 per day instead of ₹ 200 per day;

 

6. Export of services to Nepal and Bhutan are exempt from GST and have now been allowed to claim a refund of input tax credit paid, if any.

 

7. Extension of following due dates:

 

Sl	FORM and Details	Original due date	Revised due date
1	GST ITC-04 for the quarter July-September, 2017	25.10.2017	31.12.2017
2	GSTR-4 for the quarter July- September, 2017	18.10.2017	24.12.2017
3	GSTR-5 for July, 2017	20.08.2017 or 7 days from the last date of registration whichever is earlier	11.12.2017
4	GSTR-5A for July, 2017	20.08.2017	15.12.2017
5	GSTR-6 for July, 2017	13.08.2017	31.12.2017
6	TRAN-1	30.09.2017	31.12.2017 (One-time option of revision also to be given till this date)

 

II Changes recommended in Composition Scheme

 

1. Uniform Tax rate of 1% for both Trader & Manufacturer;

 

2. Supply of services by Composition taxpayer upto ₹ 5 lakh per annum will be allowed by exempting the same (Eg. Trader getting Income from Interest / Commission / Rent );

 

3. Composition scheme limit to be increased to ₹ 1.5 crore (can be extended to ₹ 2 crore later);

 

III Changes in GST Rates of Good W.e.f. 15th Nov 2017

 

1. Only 5% GST (instead of 12% & 18%) on food bills in restaurants 

2. Reduced from 28% to 18% - Shampoo, Perfume, Tiles, watches, Furniture, Mattress, Sanitary ware  etc 

️3. Reduced from 28% to 12% - Wet grinders, tanks

4. Reduced from 18% to 12% - condensed milk, refined sugar, diabetic food, Medical Oxygen

5. Reduced from 18% to 5% - Chutney Powder, Fly Ash, Fly ash aggregate with 90% or more fly ash content

6. Reduced from 12% to 5% - Fly Ash Brick, Desiccated coconut, Idli dosa batter, coir products 

7. Reduced from 5% to nil - guar meal, khandsari sugar, dried vegetables

 

IV Changes in GST Rates of Service W.e.f. 15th Nov 2017

 

1. Standalone Restaurant and Restaurants in hotel premises having room tariff < ₹ 7500 will attract GST of 5% without ITC.

2. Restaurants in hotel premises having room tariff of ₹ 7500 and above and Outdoor Catering will attract GST of 18% with ITC

 

3. In order to obviate dispute and litigation, it is proposed that irrespective of whether permanent transfer of Intellectual Property is a supply of goods or service.-

(i) permanent transfer of Intellectual Property other than Information Technology software attracts GST at the rate of 12%; and

(ii) permanent transfer of Intellectual Property in respect of Information Technology software attracts GST at the rate of 18%.

 

I hope you find the same helpful.

 

With warm regards,

 

CA. Ashwarya Agarwal,

Rourkela