Highlights of Recommendations of 21st GST Council Meeting held at Hyderabad on 9 Sept. 2017
The 21st GST Council Meetings has been conducted at Hyderabad today, i.e. 9 Sept. 2017, wherein the issues like demands of States for review of GST rates on certain items of goods and services, technical difficulties being faced faced by the Taxpayers haven been considered and the GST Council has made certain recommendations, to facilitate taxpayers, highlights of which are as follows:
List of 40 Goods for which Reduced Tax Rate Recommended by GST Council
The GST Council has recommended change/ reduction in GST Rate in respect of 40 goods, list of which is as under:
List of Services for which Tax Rate Reduction/ Change Recommended by GST Council
The GST Council has recommended reduction/ change in GST Rate in respect of certain services, list of which is as under:
Moderate Increase in Compensation Cess Rate on certain Specified Motor Vehicles
The GST Council has recommended moderate increase in rate of compensation cess on certain specified motor vehicles (SUVs/ Cars), applicable w.e.f. 11 Sept. 2017, as under:
i) Middle Segment Cars (engine capacity upto 1500 cc): cess rate increased from 15% to 17%;
ii) Large Segment Cars (engine capacity above 1500 cc): cess rate increased from 15% to 20%; and
iii) Sports Utility Vehicles (SUVs) (length above 4m + engine above 1500 cc + ground clearance above 170 mm): cess rate increased from 15% to 22%.
For all other vehicles, there is no change in the rate of compensation cess. Decision of GST Council to not to increase the cess rate upto the maximum has been appreciated by the Industry.
Extension of Due Dates for GST Returns
In view of the difficulties being faced by taxpayers in filing returns, the following revised schedule has been approved by the GST Council:
|Sl. No.||Details/ Return||Tax Period||Revised Due Date|
|1||GSTR-1||July 2017||10 Oct. 2017*|
|2||GSTR-2||July 2017||31 Oct. 2017|
|3||GSTR-3||July 2017||10 Nov. 2017|
|4||GSTR-4**||July-Sept. 2017||18 Oct. 2017 (No change)|
|5||GSTR-6||July 2017||13 Oct. 2017|
* For registered persons with aggregate turnover of more than Rs. 100 crores, the due date shall be 3rd Oct. 2017
** Table-4 under GSTR-4 not to be filled for the quarter July-September 2017. Requirement of filing GSTR-4A for this quarter is dispensed with.
However, due dates for filing of the above mentioned returns for subsequent periods shall be notified at a later date.
GSTR-3B to Continue Till Dec. 2017
The GST Council has recommended that GSTR-3B will continue to be filed for the months of August to December, 2017, i.e. decided to continue GSTR-3B till Dec. 2017.
Composition Scheme to be Re-opened for New/ Existing Taxpayers
GST Council has approved that a registered person (whether migrated or new registrant), who could not opt for composition scheme, shall be given the option to avail composition till 30th Sept. 2017 and such registered person shall be permitted to avail the benefit of composition scheme w.e.f. 1 Oct. 2017.
Exemption from Registration for Inter-state Sales of Handicraft Goods
Presently, any person making inter-state taxable supplies is not eligible for threshold exemption of Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) and is liable for registration. However, GST Council has decided to allow an exemption from registration to persons making inter-State taxable supplies of handicraft goods upto aggregate turnover of Rs. 20 lacs as long as the person has a Permanent Account Number (PAN) and the goods move under the cover of an e-way bill, irrespective of the value of the consignment.
Exemption from Registration for Inter-state Job Work upto threshold limit
Presently, a job worker making inter-State taxable supply of job work service is not eligible for threshold exemption of Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) and is liable for registration. However, GST Council has decided to exempt those job workers from obtaining registration who are making inter-State taxable supply of job work service to a registered person as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment. This exemption will not be available to job work in relation to jewellery, goldsmiths’ and silversmiths’ wares as covered under Chapter 71 which do not require e-way bill.
Allowing Revision of Form GST TRAN-1
GST Council has decided to allow revision of FORM GST TRAN-1 once.
Due Date for GST TRAN-1 Extended
The GST Council has decided to extend the due date for submission of FORM GST TRAN-1 by one month, i.e. upto 31 Oct. 2017.
Registration for TDS/ TCS and Date from deduction/ Collection to Commence
The GST Council has decided that registration for persons liable to deduct tax at source (TDS) and collect tax at source (TCS) will commence from 18 Sept. 2017. However, the date from which TDS and TCS will be deducted or collected will be notified by the GST Council later.
Committee to Examine Issues Relating to Exports
The GST Council has decided to set up a committee consisting of officers from both the Centre and the States under the chairmanship of the Revenue Secretary to examine the issues related to exports. Finally there is some hope for the exporters to get the desired relief of getting excluded from exports or getting expeditious refunds of taxes paid, as the Exporters were facing liquidity issues, etc.
Group of Ministers to Resolve Technical Difficulties faced by Taxpayers at GSTN
The GST Council has also decided to constitute a Group of Ministers to monitor and resolve the IT challenges faced during GST implementation, i.e. technical difficulties being faced by the taxpayers during registration, return filing, etc.