1. Changes recommended in Return Filing Dates:

i. All taxpayers (except Composition supplier) would be required to file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.

ii. Timeline for filing the details of return in Form GSTR-1 is proposed to be as follows:

a. Taxpayers with annual aggregate turnover upto Rs. 1.5 crore needs to file GSTR-1 on quarterly basis as per following frequency:

Period Dates
Jul- Sep 31st Dec 2017
Oct- Dec 15th Feb 2018
Jan- Mar 30th April 2018

b. Taxpayers with annual aggregate turnover more than Rs. 1.5 crore needs to file GSTR-1 on monthly basis as per following frequency:

Period Dates
Jul- Oct 31st Dec 2017
Nov 10th Jan 2018
Dec 10th Feb 2018
Jan 10th Mar 2018
Feb 10th Apr 2018
Mar 10th May 2018

iii. 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.

iv. Filing of form GSTR-1 will continue for the entire period i.e. till March 2018 without requiring the filing of GSTR-2 & GSTR-3 for the previous period.

2. Relaxation in Late fee amount for delayed filing of GST Returns:

i. If tax liability for the period is “Nil”: Rs. 20 per day (Rs. 10 each under CGST & SGST Act)

ii. In all other cases: Rs. 50 per day (Rs. 10 each under CGST & SGST Act)

iii. The aforesaid reduction will be applicable from filing of return for the month of October onwards.

3. Re-credit of Late fee paid earlier:

i. Earlier late fee was required to be paid for late filing of GSTR 3B for the month of July to September, which subsequently waived by the government.

ii. In such a case, where such late fee was paid, 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 of their future tax liabilities.

4. Extension of Dates for several forms under GST:

Sl. No. FORM and Details Original due date Revised due date
1 TRAN-1 30.09.2017 31.12.2017
2 GST ITC-04 for the quarter July-Sept, 2017 25.10.2017 31.12.2017
3 GSTR-4 for the quarter July-Sept, 2017 18.10.2017 24.12.2017
4 GSTR-5 for July, 2017 20.08.2017 or 7 days from the last date of registration whichever is earlier 11.12.2017
5 GSTR-5A for July, 2017 20.08.2017 15.12.2017
6 GSTR-6 for July, 2017 13.08.2017 31.12.2017

5. Facility to File Application for Advance Ruling Manually:

A facility for manual filing of application for advance ruling is proposed to be introduced for the time being.

6. Availability of Threshold limit for registration (i.e. Rs. 20 Lakh/ Rs. 10 Lakh) to Service Providers providing Services through E-Commerce Operator:

All service providers, whether supplying intra-State, inter-State or through E-Commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).

7. Benefit of ITC in respect of Export of Services to Nepal & Bhutan:

  • Exports of services to Nepal and Bhutan have already been exempted from GST.
  • It has now been decided that such exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for affecting such exempt supply of services to Nepal and Bhutan.

8. Changes recommended in Composition Scheme:

i. Reduction in Rate of Composition Scheme for Manufactures:

  • It has been proposed to make the Composition Scheme rate uniform to 1% for manufacturers and traders.
  • No change in rates for composition scheme for restaurant.

ii. No need to pay Tax under Composition Scheme on Exempted Turnover:

  • Earlier the % of Composition were applied on both taxable as well as exempted turnover.
  • It is now proposed to apply the rates only on taxable turnover.
  • However for the purpose of considering the availability of composition, i.e. reckoning the threshold limit, both taxable as well exempted turnovers will be counted.

iii. Introduction of Threshold of Rs. 5 Lakh for Composition taxpayer in respect of Services provided by them:

  • As per the law relating to Composition, Composition Scheme is not available to a service provider except restaurants.
  • In such a case, a supplier of goods who has opted for composition scheme becomes ineligible for composition as soon as he makes any outward supply of services except restaurant services.
  • To avoid such hardships being faced by composition taxpayers, it is now proposed to allow them to make outward supply of Services up to Rs. 5 Lakh in a year.

iv. Increase in Threshold for Composition Scheme:

  • As of now composition scheme is restricted to a person with an annual turnover of Rs. 1 Crore.
  • The same is now recommended to extend to 1.5 Crore.
  • Since the upper cap fixed in law is Rs. 1 Crore itself, the law needs to be amended in order to increase the threshold limit.
  • Therefore it is now proposed to fix the upper limit of Rs. 2 Crore in the law.

9. Change in GST rate on Services:

i. Reduction in GST rate on Restaurants:

  • All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC.
  • Food parcels (or takeaways) will also attract 5% GST without ITC.
  • Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will also attract GST of 5% without ITC.
  • 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.

ii. No Change in GST rate on Outdoor Catering:

  • Outdoor catering will continue to be at 18% with full ITC.

10. Change in GST rate on Goods:

i. Reduction in GST Rates from 28% to 18% and 12%:

  • GST Rates on 177 tariff items are proposed to be reduced to 18% from earlier 28%.
  • GST Rates on 2 tariff items are proposed to be reduced to 12% from earlier 28%.
  • Thereafter only 50 tariff items will remain within the highest slab of 28%.

ii. Reduction in GST Rates from 18% to 12% and 5%:

  • On around 13 tariff items, the rates are proposed to be reduced to 12% from earlier 18%.
  • On around 6 tariff items, the rates are proposed to be reduced to 5% from earlier 18%.

iii. Reduction in GST Rates from 12% to 5%:

  • On around 8 tariff items, the rates are proposed to be reduced to 5% from earlier 12%.

iv. Reduction in GST Rates from 5% to Nil:

  • Around 6 tariff items are now exempted from tax.

v. In order to obviate disputes and litigation, it is proposed to place-

  • permanent transfer of Intellectual Property other than Information Technology software in the goods rate of 12%; and
  • permanent transfer of Intellectual Property in respect of Information Technology software in the goods rate list of 18%.

(Disclaimer: This write up is based on the understanding and interpretation of author and the same is not intended to be a professional advice.)

[The author is a Chartered Accountant and can also be reached at [email protected]]

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Author Bio

Qualification: CA in Practice
Location: Raipur, Chhattisgarh, India
Member Since: 09 May 2017 | Total Posts: 31
Nitin Goyal is a Practicing Chartered Accountants and his core area of expertise includes Income Tax, Goods & Services Tax, Customs, and Financial Valuations. He has completed his Chartered Accountancy in Nov’2015. He secured All India Rank- 48 in his Final Exams. He is also a qualified Compan View Full Profile

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  1. Vipul Pradhan says:

    The ITC has not been denied/postponed, only filing of the GSTR-2 & GSTR-3 has been postponed.

    As the summary return under GSTR-3B is to be filed every month, the ITC can be claimed in it in summary.

    The details of ITC would be filed later on once dates for GSTR-2 will be decided.

  2. Manoj Thakur says:

    Irons, Room Heaters, Immersion Rods, Mixer Grinders still a Luxury /SIN Good as per cbec.gov.in notification and are charged @ 28% GST !!!!!!

  3. S Vanaja says:

    As per the recommendations of Council, the Assessees with 1.5 Cr & below are to file GSTR1 Quarterly ( JULY AUG SEP)only. In that case many assessees have filed GSTR 1 for July 2017 Filed Successfully. If the Govt Accepts the recommendations of GST Council, those who have already Filed GSTR1 for July Successfully , have to file once again for JULY/AUG/SEP GSTR1 on quarterly basis
    Clear Notifications to be issued by the Central Govt

  4. ca hitesh says:

    Chidambaram & Team held 100 meetings before GST, Jaitely & Adhias doing the same thing BUT after GST. Vikas slow hai ! Yeh sab changes JAKH MARKE KARNE PADEY.
    Keep criticising GST in all social media to get rid of 28% slab and compliance burden. As said above, vikas slow hai, Jaitely & Co will have to hold many more meetings to realize their mistakes.

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October 2021