Dr. Sanjiv Agarwal

GST Council (GSTC) which met at Hyderabad on 9th September, 2017 for 21st time took may decisions, major ones being hike in Compensation Cess on automobiles (motor cars) and extension of return filing dates for July, 2017.

Following are the key decisions taken by GSTC:

  • Return Form GSTR-3B will continue for six months, i.e. upto December, 2017
  • Renewed return dates (as on 09.09.2017) for July, 2017:
GSTR-1 10th October, 2017 (others)
GSTR-1 3rd October, 2017 (with > Rs. 100 crore turnover)
GSTR-2 31st October, 2017
GSTR-3 10th November, 2017
GSTR-4 18th October, 2017
GSTR-6 13th October, 2017
TRANS-1 31st October, 2017
  • Time frame for returns for August / September, 2017 to be announced later.
  • Option to choose composition scheme can be availed till 30thSeptember, 2017 which can be availed from 1st October, 2017.
  • Registration of persons liable to be registered for TDS and TCS shall commence on 18thSeptember, 2017. The exact date of deduction / collection will be notified later.
  • Reduction of GST rates in about 40 items of goods such as walnuts, tamarind, roasted gram, some pooja items, plastic raincoats, khadi fabric sold by KVIC, saree fall, clay idols, irrigation nozzles, charkha for yarn, cotton quilts, worked cords, brooms / brushes, table / wood kitchenware, paper mache articles, stone inlay work, statues, ceramic pots etc.
  • 5% GST on branded pulses, cereals etc registered as on 15.05.2017
  • Packaged products bearing some symbol on which actionable claim may be made to suffer 5% GST
  • Indigenous handmade musical instruments (134 in number) to attract Nil GST rate.
  • Constitution of Group of Ministers to monitor and resolve IT challenges faced in GSTN / GST implementation / filing of returns.
  • Compensation cess hiked on motor cess from 2% to 7% except electric cars, hybrid cars and small cars to be effective from 11.09.2017:
  • Small cars, 13-seater vehicles & hybrid cars : No change
  • Mid-size cars : Cess increased by 2%
  • Large cars: Cess increased by 5%
  • SUV’s : Cess increased by 7%
  • GST on construction services (works contracts for public structures) for Government reduced from 18% to 12%.
  • Handicraft traders below turnover of Rs. 20 lakhs having inter-state supplies need not register for IGST.
  • Supply of heavy and nuclear fuel by Department of Atomic Energy to NPCIL exempt from GST.

GSTC also reviewed filing of returns and noted that over 70% of the eligible taxpayers had filed returns fetching above Rs. 95000 crores as tax. About Rs. 60,000 crore has been claimed as input tax credit.

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