Major Recommendations made by the GST Council in the 23rd meeting (10th November, 2017)
15/11/2017 by Remesh Naick FCA
Relaxed deadlines for return filing
Form GSTR 3B to continue till March 2018, with payment of tax by 20th of the succeeding month
For filing GSTR 1 taxpayers would be divided into two categories :
Taxpayers with annual aggregate turnover upto Rs. 1.5 crore need to file GSTR-1 on quarterly basis as per the following schedule :
31st Dec 2017
15th Feb 2018
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 schedule :
31st Dec 2017
10th Jan 2018
10th Feb 2018
10th Mar 2018
10th Apr 2018
10th May 2018
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.
Reduced fines on late filing
Fine for late returns has been slashed by 90% to a mere Rs. 20 per day from Rs. 200 per day for a taxpayer with nil liability.
Late fine for not submitting the GSTR-3B within due dates for the months of July, August and September 2017 has been waived off
All the late fee collected on late filing of FORM GSTR 3B will be re-credited to their electronic cash ledger under "Tax"
From October 2017 onwards the amount of late fee on nil returns will be Rs.20 per day
Changes in rate Structure
178 Items shifted
from 28% slab to lower slabs leaving apart sin goods and cess applicable goods.
Restaurants to have no more input tax credit and the rate of tax is changed to 5%.But 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 - 18% with ITC.
Changes in composition scheme
Manufacturers and traders would now operate at a standard rate of 1%
Threshold for the composition scheme has been increased to Rs. 1.5 crores from the current limit of Rs. 1 crore
Those supplying goods and services (services not exceeding Rs 5 lakhs in total) are eligible for compositions scheme
Composition Returns, GSTR-4 due date extended to 24th December
Relief for service providers
All service providers having inter-state supply or supply through e-commerce operator are exempt from GST registration with turnover up to Rs 20 lakhs.
Other reliefs granted
Export of services to Nepal and Bhutan are exempt from GST and have now been allowed to claim a refund of input tax credit paid if any
TRAN-1 can be filed and revised till 31st December 2017. Revision to be done only once.
Manual filing for Advance Ruling application to be introduced