Highlights of 22nd GST Council Meet held at national Capital and Chaired by our Honorable Financial Minister Shri Arun Jaitley and Council members
1. Composition Scheme:
Ω Threshold limit for availing Composition Scheme has increased from Rs. 75 Lakhs to Rs. 1 Crore for all the States except north Eastern States.
Ω Whereas for North Eastern States, Threshold limit for availing Composition Scheme has increased from Rs. 50 Lakhs to Rs. 75 Lakhs.
Ω However, for J&K and Uttarakhand, Threshold limit for availing Composition Scheme is Rs. 1 Crore.
Ω Due date for filing of returns by a Composite dealer (Quarterly) has extended to 15thNovember, 2017.
Ω Assesses who are engaged in supply of Exempted Service are also eligible for availing Composition scheme. Whereas, no option for availing Composition scheme exists for the Assesses engaged in Supply of Service except restaurant Service.
“Assesse engaged in supply of Restaurant Service as well as exempted Service, for the purpose of calculation of Turnover for availing Composition scheme, turnover pertains to Exempted Service is not to be included.”
Refund to be paid for exporters
|July 2017||10th October|
|August 2017||18th October|
Ω An E-Wallet for all the Exporters for every Exporter through which notional amount of Refund will be credited soon.
Ω E-Wallet will be made comfortable for every Exporter by 01/04/2018 by our Honourable Financial Minister Shri Arun Jaitley.
3. Small and Medium Enterprises:
Ω A big relief to file returns Quarterly whereas tax has to be paid Monthly.
Ω For this purpose, Small and Medium Enterprises are those Assesses whose annual turnover is less than or Equal to Rs. 1.5 Crore.
4. Reverse charge mechanism:
Ω As per provision of sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017, GST has to be paid by the recipient where either Goods or Services are procured from an Unregistered Dealer.
Recommendations made by the council vide its 22nd GST Council meet held on 06/10/2017 at National Capital was that the above said provisions to be suspended till 31/03/2018.
5. GST on Advance:
Ω There comes a new provision never ever heard i.e., GST to be paid on advance received and credit cannot be availed till the final settlement of the bill.
Here comes the recommendation made by the council vide its 22nd GST Council meet held on 06/10/2017 at National Capital is that “Those Assesses whose turnover is less than Rs. 1.5 Crore were not required to pay GST on advances received by them”.
6. TDS and TCS Provisions:
Ω Operationalisation of TDS and TCS provisions so proposed in GST Act were postponed till 31/03/2018.
7. Revision of Tax rates for various Items:
|S No||Chapter ID||Item||Existing Tax Rate (%)||Proposed Tax Rate (%)|
|1||0804||Mangoes sliced dried||12||5|
|2||1905 or 2106||Khakra and plain chapati / roti||12||5|
|3||19 or 21||Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government, subject to specified conditions||18||5|
|4||21||Namkeens other than those put up in unit container and, –
(a) bearing a registered brand name; or
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily
|5||2710||Imposing GST only on the net quantity of superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB]||18||18|
|6||30||Ayurvedic, Unani, Siddha, Homeopathy medicines, other than those bearing a brand name||12||5|
|8||3407||Modelling paste for children amusement||28||18|
|9||3915||Plastic waste Parings and Scrap||18||5|
|10||4004 00 00||Rubber waste Parings and Scrap||18||5|
|11||4017 00 20||Hard rubber waste Parings and Scrap||28||5|
|12||4707||Paper waste and Scrap||12||5|
|13||4907||Duty credit scrips||5||Nil|
|14||5401||Sewing thread of man made filaments, whether or not put up for retail sale||18||12|
|15||5402, 5404, 5406||All synthetic filament yarn, such as nylon, polyester, acrylic, etc.||18||12|
|16||5403, 5405, 5406||All artificial filament yarn, such as viscose rayon, Cuprammonium,||18||12|
|17||5508||Sewing thread of man made staple fibers||18||12|
|18||5509, 5510, 5511||Yarn of man made staple fibers||18||12|
|20||6802||All goods falling under heading 6802 [other than those of marble and granite or those which attract 12% GST]||28||18|
|21||7001||Cullet or other waste or scrap of Glass||18||5|
|22||8305||Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal||28||18|
|23||8483||Plain Shaft bearing 8483||28||18|
|24||84||Parts suitable solely for Principally with fixed speed diesel of power not exceeding 15HP||28||18|
|25||84 or 85||Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps||28||18|
|26||84 or 85||E-Waste||28/18||5|
|27||Any Chapter||Biomass briquettes||18||5|
Please also note that all the above are only recommendations made by the council and are to be in force on through by Gazette notification.