Highlights of Recommendations of 22nd GST Council Meeting at New Delhi

Highlights/ Major Recommendations of 22nd GST Council Meeting at New Delhi (dt. 6 Oct. 2017)

Taking note of the widespread unrest among the business community and professionals, Govt and GST Council seems to have taken note of the situation and are all set to sort out concerns of small and medium taxpayers, exporters, etc.

GST Council in it’s 22nd Meeting at New Delhi has recommended certain facilitative changes to ease the burden of compliance on small and medium businesses, like quarterly returns filing by small taxpayers with turnover upto Rs. 1.5 crores, composition threshold increased from 75 lacs to Rs. 1 crore, RCM put on hold till 31 March, 2018, etc., as detailed here-under:

i) Quarterly Return for Small Taxpayers to Reduce Compliance Burden: MSMEs, Small Traders, Exporters, etc. having annual turnover of upto Rs. 1.5 crores have been given relief from monthly filing of GST Returns. Now they can file quarterly GST Returns and also they can pay taxes on quarterly basis.

CBEC Notifies Quarterly GST Return/ Tax Payment by Small Taxpayers

ii) Review of Threshold Limit for Composition Scheme: Threshold limit for registration under composition scheme has been increased from Rs. 75 lac to Rs. 1 crore. Now small traders having turnover upto Rs. 1 Crore can pay tax at flat rate (1% for traders, 2% for manufacturers and 5% for restaurants) under composition and can file their returns on quarterly basis.

Composition Scheme Threshold Limit Increased to Rs. 1 Crore notified by CBEC

iii) Review of Reverse Charge Mechanism (RCM): For convenience of large taxpayers and survival of unregistered taxpayers, the Reverse Charge Mechanism (RCM) under GST has been put on hold till 31 March 2018.

Reverse Charge Mechanism (RCM) Suspended till 31 March 2018: CBEC Notification

iv) Relaxations for Exporters: releasing quicker refunds of duties to ease their working capital requirements. Govt has already allowed them to make exports without payment of IGST by furnishing LUT. Refunds for July and August 2017 will be released from 10th Oct./ 18 Oct. 2017 respectively, by cheque.

Major Relief Package under GST for Exporters: CBEC

0.1% GST Rate for Supply of Goods to Merchant Exporters notified by CBEC

v) TDS/ TCS: Registration and operationalization of TDS/TCS provisions shall be postponed till 31.03.2018.

Registration/ TDS-TCS Compliance under GST Suspended till 31 March, 2018: CBEC

vi) Review of GST Rates: In the case of about 27 items of goods and services, the GST rates have been reduced. For details, please refer the link below:

Reduction/ Changes in GST Rates on Job work etc. Services: CBEC

Cut in GST Rate of Goods (27 Domestic Supplies+3 Imports Items): CBEC

vii) Extension of GST Return Due Dates: The last date for filing the return in FORM GSTR-4/ GST-5A/ GSTR-6 extended upto 15 Nov. 2017.

CBEC Extends Due Date for filing of GSTR-5A (July~Sept. 2017) by OIDAR Services Providers

CBEC Notifies Extended Due Dates for GST Returns (GSTR-4/ GSTR-6) upto 15 Nov. 2017

viii) E-way Bill System: Deferred till 31 March 2018.

E-Way Bill System Implementation Deferred till 31 March 2018: CBEC

ix) No GST on Advance received by Small Taxpayers: No GST on Advance Payments received for Supply of Goods by Small Taxpayers having aggregate annual turnover of upto Rs. 1.5 crores.

No GST on Advance Payments for Goods received by Small Taxpayers: CBEC

x) Inter state services providers exempted from Registration: all inter state service providers shall be exempted from Registration, if turnover remains below the threshold limit.

CBEC Notifies Regn. Exemption for All Inter-state Service Providers (Below Threshold)

xi) Services Provided by GTA to Unregistered Person Exempted: The services provided by a GTA to an unregistered person shall be exempted from GST.

Services Provided by GTA to Unregistered Person Exempted: CBEC

xii) Petroleum & Oil Sector: To reduce the cascading of taxes on petrol, diesel, ATF, natural gas and crude oil, following recommendations have been made:

a) Offshore works contract services and associated services relating to oil and gas exploration and production in the offshore areas beyond 12 nautical miles shall attract GST of 12%;

b) Transportation of natural gas through pipeline will attract GST of 5% without input tax credits (ITC) or 12% with full ITC;

c) Import of rigs and ancillary goods imported under lease will be exempted from IGST, subject to payment of appropriate IGST on the supply/import of such lease service and fulfillment of other specified conditions.

Further, GST rate on bunker fuel is to be reduced to 5%, both for foreign going vessels and coastal vessels

xiii) Invoice Rules Simplification: Invoice Rules are being modified to provide relief to certain classes of registered persons.

Recommendations of 22nd GST Council Meeting: CBEC Press Release dt. 6 Oct. 2017

Related Posts:

Highlights of 23rd GST Council Meeting dt. 10 Nov. 2017 at Guwahati

CBEC Extends Due Date for filing of GSTR-5A (July~Sept. 2017) by OIDAR Services Providers

CGST (9th Amendment) Rules, 2017 notified by CBEC

CGST (Removal of Difficulties) Order, 2017 notified by CBEC

Union Territory GST (Removal of Difficulties) Order, 2017 notified by CBEC

Registration Exemption for Addl. Items (Inter-state Handicrafts Supply) Notified by CBEC

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