Rajyalakshmi A

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.”

2. Exporters:

Refund to be paid for exporters

Month Due date
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

12 5
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
7 3213 Poster Color 28 18
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
19 5605 Real Zari 12 5
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.

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Qualification: CA in Job / Business
Company: M/s Ultratech Cement Limited
Location: Guntur, Andhra Pradesh, IN
Member Since: 09 Oct 2017 | Total Posts: 2

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    Sir, What is the meaning for “PERSON PROVIDING ANY EXEMPTED SERVICE NOW ELIGIBLE FOR COMPOSITION”. It’s already exempted but how can come under composition scheme and paying tax?

    1. A.S.rajya Lakshmi says:

      it means that-
      Earlier provisions of Composition scheme does not allow those Assesses who are engaged in Supply of Service (Either taxable or Exempted) to opt for Composition Scheme.
      Now, what I stated in my Article is those Assesses merely because of Supply of Service (Exempted) who were dis qualified for Composition scheme gets eligible for Composition scheme.
      The supply of exempted Service is in addition to their other supplies (only Goods that too in Intra State).

  2. CA Mayur Arora says:

    “The facility of availing composition under the increased threshold shall be available to both migrated
    and new taxpayers up to 31.03.2018”

    The above Lines have been taken from Press Release notified by CBEC.

    “The facility for opting Composition scheme is extended up to 31/03/2018.”This is what the article says.

    Now what i mean to say is that article is giving false impression that the scheme can be opted till 31/03/2018. it is not the case……What press release wants to convey is that the increased limit of 1 cr for composite dealer shall be available till 31/03/2018 and it might reduce back to 75 lacs for FY 2017-18. Due date for opting composition scheme has not been extended through the press release.

    1. A.S.rajya Lakshmi says:

      The GST Council recommends the increased threshold limit. They do not even mention that increased threshold only for the FY:2017-18.
      We have to wait for further gazette Notification whether it is the provision or only relaxation?
      Doesn’t the words “shall be available” can be simplified as extended?

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November 2020