Decisions taken in 23rd GST council meeting, held in Guwahati on 10th November, 2017
A. REDUCTION IN RATES :
1. 178 items have been move from 28% to 18%
2. 13 items have been move from 18% to 12%, 5 items have been moved from 18% to 5% and 6 items have been moved from 5%to 0%
3. All stand alone Restaurants (except 5 star) irrespective of AC will attract 5% GST without ITC also food parcels (or takeaways) will attract 5% GST without ITC,
4. Outdoor catering will continue to be 18% with full ITC
5. Restaurants in hotel premises having room tariff of less than Rs 7500/- will attract 5% GST without ITC, however hotels having tariff above 7500/- will attract 18% of GST with full ITC.
B. COMPOSITION SCHEME:
1. Composition rate for manufacturers and traders are uniform now i.e. 1%., however restaurants are continue with 5%
2. Threshold limit is increased to Rs 1.5 Cr (It can be further increased to 2 Cr later)
3. Introduction of composite suppliers of goods having services supplies up to 5L P.A..
4. Exempted supplies not to be taxed @ 1%.
5. In fact for calculation of aggregate turnover , exempt supplies are not covered.
C. Return Filling:
1. All tax payers would file GSTR 3B along with payment of tax by 20th of succeeding month.
2. For filling GSTR 1 till march 2018, taxpayers would be divided into two categories as follows:
(a) Taxpayers with annual turnover up to Rs 1.5Cr. Return filling schedule:
| Period | Dates |
| Jul-Sep | 31st Dec,2017 |
| Oct- Dec | 15th Feb,2018 |
| Jan- Mar | 30th Apr, 2018 |
(b) Taxpayers with annual turnover more than Rs 1.5Cr. Return filling schedule:
| Period | Dates |
| Jul-O ct | 31st Dec,2017 |
| Nov | 10th Jan, 2018 |
| Dec | 10th Feb, 2018 |
| Jan | 10th Mar, 2018 |
| Feb | 10th Apr, 2018 |
| Mar | 10th May, 2018 |
3. The time period for filling GSTR2 and GSTR3 for the months of July, 2017 to March, 2018 would be worked out by a committee of officers. However, Filling of GSTR 1 will continue , without requiring filling of GSTR 2 & GSTR 3 for the previous period.
4. Other Due dates:
| Return | Due date |
| GST ITC 04 for July-Sep | 31st December, 2017 |
| GSTR 4 for July-Sep | 24th December, 2017 |
| GSTR 5 for July | 11th December, 2017 |
| GSTR 5A for July | 15th December, 2017 |
| GSTR 6 for July | 31st December, 2017 |
| TRAN 1 | 31st December, 2017 (including Revision) |
D. Late Fees:
1. Late fees for the month of July, August and Sept, 2017 for GSTR 3B waived in all such cases. 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 their future tax liabilities.
2. For subsequent months, i.e. October, 2017onwards, 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/- for CGST act and Rs 10/- for SGST Act) instead of Rs 200/- per day (Rs 100/- for CGST act and Rs 100/- for SGST Act).
E. Manual filling:
1. A facility for manual filing of application for advance ruling is being introduced for the time being.
F. Benefits to service providers:
1. Export to Nepal & Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming ITC of goods or services used for effecting such exempt supplies.
G. Benefits for foreign diplomatic missions / UN organizations:
1. In order to lessen the compliance burden on above mentioned organizations , centralized UIN will be issued to every Foreign Diplomatic Mission / UN organization by the central Govt. and all compliance will be done by CG and ministry of finance.
Relevant notifications for all of the above decisions will be issued shortly, so as to be effective from 15th Nov, 2017.
Thank you
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FCA VAIBHAV KANSAL
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