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

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

23rd Meeting of the GST Council held at Guwahati on 10 Nov. 2017 has deliberated on various GST Implementation issues and has recommended to extend due dates for filing of various GST Returns besides reduction of tax rate of 177 items of goods from 28% to 18%, etc. As per CBEC Press Release dt. 10 Nov. 2017, the GST Council has broadly decided on tax rates, etc. issues, as under:

1. Simplification of Process and Extension of Due Dates for GST Return Filing

GST Council has recommended that the GST return filing process is to be further simplified in the following manner:

A. GSTR-3B to continue till March 2018

All taxpayers would file return in FORM GSTR-3B for each month, till March, 2018, along with payment of tax by 20th of the succeeding month.

CBEC Notifies GSTR-3B Filing/ Tax Payment Due Dates upto March 2018 (20th of Following Month)

B. Extension of Due Dates for GSTR-1, GSTR-2, GSTR-3, GSTR-4, GSTR-5, GSTR-5A, GSTR-6, TRAN-1, ITC-04

In line with recommendations of the GST Council, the CBEC has extended due dates for various GST Returns, as under:

CBEC Extends GSTR-5 Due Date upto 15 Dec. 2017 for Non-Resident Taxable Person (July~Oct. 2017)

CBEC Extends GSTR-5A (OIDAR) Due Date upto 15 Dec. 2017 for July~Oct. 2017

CBEC Notifies ITC-04 Due Date Extended upto 31 Dec. for July 2017 to Sept. 2017

CBEC Extends Due Date of GSTR-4 (July-Sept. 2017) upto 24 Dec. 2017 for Composition Dealers

CBEC Extends Due Date of GSTR-6 (July 2017) upto 31 Dec. 2017 for ISD

Revised Monthly/ Quarterly Due Dates for GSTR-1 upto Mar. 2018 notified by CBEC 

Last Date to Submit Declaration in Form TRAN-1 Extended upto 27 Dec. 2017: CBEC

Last Date to Revise Form TRAN-1 Extended upto 27 Dec. 2017: CBEC

CBEC Notifies GSTR-3B Filing/ Tax Payment Due Dates upto March 2018 (20th of Following Month)

GST Return Due Dates Extended: GST Council Recommendations

2. Refund of Late Fee Paid for GSTR-3B of July/ Aug./ Sept. 2017

A large number of taxpayers were unable to file their return in FORM GSTR-3B within due dates during the period July to September, 2017. Late fee was waived in all such cases. It has been decided that where such late fee was paid, it will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented.

3. Revised/ Reduced Late Fee for GSTR-3B (Oct. 2017 onwards)

From October 2017 onwards, the amount of late fee payable 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).

Reduced Late Fee for Delayed Filing of GSTR-3B from Oct. 2017 notified by CBEC

4. Facility for Manual Filing of Advance Ruling Applications

A facility for manual filing of application for advance ruling under GST is being introduced, for the time being.

5. ITC Claims for Exempted Exports to Nepal

Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such 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.

6. Exemption from GST Registration for E-commerce Service Providers (upto 20 lakh turnover)

Exemption from compulsory registration provisions applicable for suppliers providing services through an e-commerce platform, provided their aggregate turnover does not exceed Rs. 20 lakh (Rs. 10 lakh in special category States except J & K) and the supplier is not liable to collect tax at source under GST:

GST Registration Exemption for Services Supplier via E-commerce Platform notified by CBEC

7. Centralized UIN to Foreign Diplomatic Missions/ UN Organisations

In order to lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.

Record UIN in Supply Invoice on UN/ Foreign Diplomatic Missions: CBEC Advisory

8. Changes in the Composition Scheme under GST

GST Council has recommended substantial changes in GST Composition Scheme, as under:

i) 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.

ii) Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same.

iii) 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.

iv) The changes recommended by GST Council at (ii) and (iii) above will be implemented only after the necessary amendment of the CGST Act and SGST.

Changes recommended in Composition Scheme by GST Council: CBEC Press Release 10 Nov. 2017

9. Substantial Changes in GST/ IGST Tax Rates

Major relief in GST/ IGST rates on certain goods and services has been recommended by GST Council, spread across many sectors and commodities, i.e. tax rate of 177 mass use items reduced from existing 28% to 18%, tax rate reduced from 28% to 12% for 2 items, tax rate reduced on 54 items under different rates. However, 50 items are still retained in 28% tax rate bracket.

Reduced GST Rates (w.e.f. 15 Nov. 2017) for Various Goods/ Services notified by CBEC

Changes in GST/ IGST Rates Recommended by GST Council: CBEC Press Release dt. 10 Nov. 2017

Changes in GST/ IGST Rates Recommended by GST Council: CBEC Press Release 2 dt. 10 Nov. 2017

10. Exemption from IGST/GST in certain specified cases:

In addition to changes in Tax rates, teh GST Council has recommended/ proposed exemption from IGST/ GST in certain cases of supply of goods and services, as under:

i) Exemption from IGST on imports of lifesaving medicine supplied free of cost by overseas supplier for patients, subject to certification by DGHS of Centre or State and certain other conditions

ii) Exemption from IGST on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount.

iii) To extend IGST exemption presently applicable to skimmed milk powder or concentrated milk, when supplied to distinct person under section 25(4) for use in production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act.

iv) Exemption from IGST on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions

v) Exemption from GST on specified goods, such as scientific or technical instruments, software, prototype supplied to public funded research institution or a university or IISc, or IITs or NIT.

vi) Coverage of more items, such as temporary import of professional equipment by accredited press persons visiting India to cover certain events, broadcasting equipments, sports items, testing equipment, under ATA carnet system. These goods are to be re-exported after the specified use is over.

11. 5% GST Rate for Restaurants

GST Council has recommended a uniform tax rate of 5% for Restaurants (standalone/ in hotels) without ITC, as under:

i) 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.

ii) Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.

iii) 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.

iv) Outdoor catering will continue to be at 18% with full ITC.

5% GST Rate for Restaurants/ Job Work on Handicrafts notified by CBEC

Related Posts: 

CGST (12th Amendment) Rules, 2017 notified by CBEC

GST Exemption for Admission Service to Protected Monuments from 15 Nov. 2017 notified by CBEC

CBEC Amends List of Exempted Items under GST, w.e.f. 15 Nov. 2017

CBEC notifies Raw Cotton under GST Reverse Charge (RCM) w.e.f. 15 Nov. 2017

Concessional 2.5% GST Rate for Scientific/ Technical Equipments notified by CBEC

No Refund of Unutilised ITC for certain Fabrics (corduroy/ narrowly woven): CBEC Notifications

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