GST council had its 15th meeting, chaired by Finance Minister Arun Jaitley, at Srinagar, hammered out almost all the related aspects to implement nationwide, the biggest tax reform since independence i.e. Goods and Service Tax, at the scheduled date i.e. July 1, 2017, which aims to transform Asia’s third largest economy into a single market. The GST Council had last month fitted over 1200 goods and 500 services in the tax brackets of 5, 12, 8 and 28 percent.
Following are the highlights of the 15th GST Council Meet:
A. Final Rules for Returns for the following cases:
1. Form and manner of furnishing details of outward supplies
2. Form and manner of furnishing details of inward supplies
3. Form and manner of submission of monthly return
4. Form and manner of submission of quarterly return by the composition supplier
5. Form and manner of submission of return by non-resident taxable person
5A. Form and manner of submission of return by persons providing online information and database access or retrieval services
6. Form and manner of submission of return by an Input Service Distributor
7. Form and manner of submission of return by a person required to deduct tax at source
8. Form and manner of submission of statement of supplies through an e-commerce operator
9. Notice to non-filers of returns
10. Matching of claim of input tax credit
11. Final acceptance of input tax credit and communication thereof
12. Communication and rectification of discrepancy in claim of input tax credit and reversal of claim of input tax credit
13. Claim of input tax credit on the same invoice more than once
14. Matching of claim of reduction in the output tax liability
15. Final acceptance of reduction in output tax liability and communication thereof
16. Communication and rectification of discrepancy in reduction in output tax liability and reversal of claim of reduction
17. Claim of reduction in output tax liability more than once
18. Refund of interest paid on reclaim of reversals
19. Matching of details furnished by the e-Commerce operator with the details furnished by the supplier
20. Communication and rectification of discrepancy in details furnished by the ecommerce operator and the supplier
21. Annual return
22. Final return
23. Details of inward supplies of persons having Unique Identity Number
24. Provisions relating to a goods and services tax practitioner
25. Conditions for purposes of appearance
B. GSTP (Goods and Service Tax Practitioner) Formats:
| Name of the Form | Description |
| GST PCT – 1 | Application for Enrolment as Goods and Service Tax Practitioner |
| GST PCT-02 | Enrolment Certificate for Goods and Service Tax Practitioner |
| GST PCT-03 | Show Cause Notice for disqualification |
| GST PCT-04 | Order of Rejection of Application for enrolment as GST Practitioner/ Or Disqualification to function as GST Practitioner |
C. Mismatch Formats
Results of Matching after filling of the Returns of September (to be filled by 20th October).
D. GST Returns Formats
| Name of the Form | Description |
| GSTR-1 | Details of outwards supplies of goods or services |
| GSTR-1A | Details of auto drafted supplies of goods or services |
| GSTR-2 | Details of inward supplies of goods or services |
| GSTR-2A | Details of supplies auto drafted from GSTR-1 or GSTR-5 to recipient |
| GSTR-3 | Monthly return |
| GSTR-3A | Notice to return defaulter u/s 46 |
| GSTR-4 | Quarterly return for registered persons opting composition levy |
| GSTR-4A | Auto drafted details for registered persons opting composition levy |
| GSTR-5 | Return for Non Resident Taxable Persons |
| GSTR-5A | Details of supplies of online information and database access or retrieval services by a person located outside India made to non-taxable persons in India |
| GSTR-6 | Return for input service distributors |
| GSTR-6A | Details of supplies auto drafted from GSTR-1 or GSTR-5 to ISD. |
| GSTR-7 | Return for Tax Deduction at Source |
| GSTR-7A | Tax Deduction at Source Certificate |
| GSTR-8 | Statement for Tax Collection at Source |
| GSTR-11 | Inward supplies statement for persons having Unique Identification Number (UIN) |
E. Others Rates
| Description | Rate as fixed in the Meeting |
| Gold | 3% |
| Gold Jewellery | 3% |
| Gems and Jewellary | 3% |
| Readymade Garments | 12% (no cash refund on ITC) |
| Readymade Garments below Rs.1,000 | 5% (no cash refund on ITC) |
| Fabrics and Yarn of Cotton | 5% |
| Manmade Yarn | 18% |
| All categoriess of Textiles | 5% |
| Packaged & branded Food items | 5% |
| Fiber silk and Jute | 0% |
| Manmade fiber | 18% |
| Rough diamonds | 0.25% |
| Polished or semi polished or on cut (diamonds) | 3% |
| Tendu leaves | 18% |
| Bidi | 28% (no cess) |
| Footwear costing upto Rs. 500 | 5% |
| Footwear costing above Rs. 500 | 18% |
| Man- made apparel upto Rs. 1,000 | 5% |
| Man- made apparel above Rs. 1,000 | 12% |
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| “Both in the case of footwear and textiles, a major concession has been given,” Finance Minister Arun Jaitley said, adding the Council will meet one more time on June 11 to review the preparedness before the July 1 rollout. |
Other important point to be considered
The GST Council also approved the draft transition laws that will help switchover to the new tax regime. According to the new decided draft law, once GST is implemented, a company can claim credit of upto 60% on items with excise rates above 18% & can claim credit of upto 40% on items with excise rates below 18% dues for excise duty paid on stock held by businesses prior to the roll out.
Conclusion
After the 15th meet of GST Council, there is no second thought that GST is all set to launch on July 1, 2017, which is considered as a destination- based single tax on the supply of goods and services from the manufacturer to the consumer and is one indirect tax for the entire country. It is strongly believed that the implementation of GST will bring in a new and positive change to our Indian economy.
“ONE NATION, ONE TAX”
Hope this information will help you in your Professional endeavors. For further assistance/query, feel free to write back to us.
Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com
Disclaimer: The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.
Also Read-
1 » IGST Exemptions/Concessions List under GST- dated 03.06.2017
2 » Addendum to the GST Rate Schedule – 03.06.2017
3 » GST Rate Schedule For Certain Goods (3rd June 2017)
4 » GST Return Rules, GSTP Formats, Mismatch Formats, Return Formats
Author Bio
well written
any new about transitional provisons. Has anythin been decided in the said meeting.
sir,
When GSTP enrolment will start ?????
GST Update:
Regarding GST on educational institutions.
As per the council meet on 19th May 2017, following service is exempt from GST:
Services provided,-
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Government;
(iii) security or cleaning or house-keeping services performed in such educational institution;
(iv)services relating to admission to, or conduct of examination by, such institution; upto higher secondary.
Provided that nothing contained in clause (b) of this entry shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.
There are 2 levels of tax, i.e. tax on Input & then tax on output.
In tax credit regime, if there is tax on output then one can adjust the tax paid on input hence such tax on input is not forming part of his cost. And accordingly, the service is actually altogether exempt at both levels.
After careful understanding of the above exemption it reveals that:
(i) in case of school upto 12th, both level tax exemption is given which is really welcome…BUT
(ii) in case of higher education after 12th, only output level exemption is given and henceforth input tax would become cost and ultimately cost of education will rise….which is really not welcome. such exemption on output only is just show off and half hearted step.
Government must rethink on it…
Hello Sir,
I am vat practitioner under Dvat, Shall I have to taken saperate registration for GST practitioner & will have to pay fee again in GST Regime.