GST COUNCIL Meeting Summary

GST COUNCIL Meeting Summary

October 9, 2017 Compliance Blog 0

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.

  Composition Dealers

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

  1. 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.
  2. 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
  3. 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.
  4. 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;
  5. 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 .
  6. Provision for GST TDS/TCS shall be extended till 31st March 2018;
  7. 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.
  8. 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

Months Begin from
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 for feedback, doubts and queries.


All material included in this blog is for informational purposes only and does not purport to be or constitute legal or other advice. The Blog should not be used as a substitute for specific legal advice. Professional legal advice should be obtained before taking or refraining from an action as a result of the contents of this blog. We exclude any liability (including without limitation that for negligence or for any damages of any kind) for the content of this blog. The views and opinions expressed in this blog are those of the author/(s) alone and do not necessarily reflect the official position of Lexplosion. We make no representations, warranties or undertakings about any of the information, content or materials provided in this blog (including, without limitation, any as to quality, accuracy, completeness or reliability). All the contents of this blog, including the design, text, graphics, their selection and arrangement, are Copyright 2018, Lexplosion Solutions Private Limited or its licensors.

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