Outcome of the 23rd GST Council Meeting held on 10th November, 2017
The GST Council has hold its 23rd meeting in Guwahati on 10th November, 2017. In the meeting GST council has broadly taken the following decisions –
- The return filing process is further simplified in the following manner
- All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20thof the succeeding month till March, 2018.
- For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into two categories. Details of these two categories along with the last date of filing GSTR 1 are as follows:
- Taxpayers with annual aggregate turnover upto Rs. 1.5 crore need to file GSTR-1 on quarterly basis as per following frequency:
|Jul- Sep||31st Dec 2017|
|Oct- Dec||15th Feb 2018|
|Jan- Mar||30th April 2018|
- Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file GSTR-1 on monthly basis as per following frequency:
|Jul- Oct||31st Dec 2017|
|Nov||10th Jan 2018|
|Dec||10th Feb 2018|
|Jan||10th Mar 2018|
|Feb||10th Apr 2018|
|Mar||10th May 2018|
iii. The time period for filing GSTR-2 and GSTR-3 for the months 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 without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.
- B) From October 2017 onwards, the amount of late fee payable for late filing of GSTR-3B by a taxpayer whose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts).
Benefits for Service Providers
- a) Exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.
- b) All service providers, whether supplying intra-State, inter-State or through e-commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).
Extension of dates for filing other returns
The due dates for furnishing the following forms shall be extended as under:
|S. No.||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)|
Revised due dates for subsequent tax periods will be announced in due course.
GST Rate Changes
- The Council has recommended reduction in GST rate from 28% to 18% on goods falling in 178 headings at 4-digit level (including 4 tariff heading that are partially pruned). After these changes, only 50 items will attract GST rate of 28%.
- All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC.
- Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.
- Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.
- Outdoor catering will continue to be at 18% with full ITC.
Changes recommended in Composition Scheme
- Uniform rate of tax @ 1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant.
- Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same
- Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum.
Relevant notifications for all of the above decisions will be issued shorty, so as to be effective from 15.11.2017.