GST COUNCIL Meeting Summary
There have been various positive decisions taken by GST Council in its 22nd Meeting, welcomed by the Industry as a whole. The recommended changes speak for the commitment of the Government to facilitate ease of doing business & trade. Let us have a look on some of the major relief provided by Council to different sectors.
GST Council in order to give relief to small traders has increased the threshold limit for availing Composition Scheme from Rs. 75 Lakhs to Rs. 1 Crore for all the States except north Eastern States. The due date for filing return for Quarter 2 by the Composition Dealer has also been extended to 15th November,2017. Please refer the following table for updated limits for availing Composition Scheme.
|Name of States||Earlier Threshold Limit||Proposed Threshold Limit|
|All States Except NE States||INR 75 lacs||INR 1 Crore|
|NEStates except J&K and Uttarakhand||INR 50 lacs||INR 75 lacs|
|J&K and Uttarakhand||INR 75 lacs||INR 1 Crore|
*NE – North-Eastern States
The facility of availing composition under the increased threshold shall be available to both migrated and new taxpayers up to 31.03.2018
Apart from Restaurant Services., a person opting for composition scheme was restricted from providing any other exempted / taxable service. The supply of food and restaurant services category was the only service included under the composition but now a composite dealer can provide exempted services also. For example a doctor running a clinic and pharmacy can now opt for composition for pharmacy.
Relief for Small Dealers ( With Turnover Upto 1.5 Crore) and Enterprises
The following are some of the major decisions taken by GST Council to reduce compliance burden for small dealers and enterprises
- Earlier registered persons were required to do monthly filing for GSTR 1, 2 and 3 returns. GST Council in order to give relief to small businesses has decided that Businesses with annual aggregate Turnover up to Rs. 1.5 crore shall file GSTR-1 , 2 & 3 returns on Quarterly basis. This provision shall be effective from Oct-Dec 2017 quarter. However GSTR-3B will have to be filed on monthly basis till December’17 by all assesses. The registered buyers from such small taxpayers would however be eligible to avail ITC (Input Tax Credit) on a monthly basis.
- Earlier any person providing inter-state service (other than job worker) was not eligible for threshold exemption of 20 lacs. However now such service providers can avail such benefit. Any person who has already taken registration may opt for cancellation
- As per section 9(4) tax was required to be paid on reverse charge on purchases from Unregistered Persons. GST Council has decided to defer Reverse Charge Mechanism u/s 9(4), in respect of un-registered purchases till 31st March 2018. The extent of applicability of this exemption shall be confirmed after it is notified.
- Small units having aggregate turnover up to INR 1.5 crore are exempted from payment of GST on advance received against supply of Goods. Please note, this exemption shall not be available in case of supply of services;
- Due to compliance issues, GTA (Good Transport Agency) are not willing to provide services to unregistered businesses. So In order to remove the hardship faced by small unregistered businesses, GST Council has decided to exempt GTA Services provided to un-registered person .
- Provision for GST TDS/TCS shall be extended till 31st March 2018;
- The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018.
- The last date for filling GSTR-6 by ISD (Input Service Distributor) for the month of July, August and September, 2017 shall be extended to 15th November 2017
Relief for Exporters
a.Refunds of input tax for exports outside India shall begin as per the below timeframe
|July||10th October onwards|
|August||18th October onwards|
b.Merchant exporter (Traders) shall now be able to procure goods from domestic supplier on payment of GST @ 0.1% . Also Exporters holding Adv. Authorization/EPCG and EOU’s can now import / procure goods from domestic supplier without payment of GST .The above mechanisms has been provided as temporary relief.
This permanent solution to resolve cash blockage for exporters is that of “e-Wallet” which would be credited with a notional amount as if it is an advance refund. This credit would be used to pay IGST, GST etc. The details of this facility would be worked out soon. The Council desired that the “e-Wallet” solution should be made operational w.e.f. 1st April 2018.
c.To restore the lost incentive on sale of duty credit scrips the GST on sale/purchase of these scrips is being reduced from 5% to 0%
d.Specified banks and Public Sector Units (PSUs) are being allowed to import Gold without payment of IGST. This can then be supplied to exporters as per a scheme similar to Advance Authorization.
e.Exporters have also been exempted from furnishing Bond and Bank Guarantee when they clear goods for export.
Source: Press Release / Note dated 06.10.2017
Note : The GST Update is an attempt to inform about various decisions and recommendations of the Council. We welcome your feedback on the same. Please email us at email@example.com for feedback, doubts and queries.