Major Reliefs to the Taxpayers Recommended by the 23rd GST Council Meeting

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The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the following facilitative measures for taxpayers:

Return Filing

1.All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.

2. Form GSTR-1 (Return of outward supplies) has been divided into two parts as those with aggregate turnover up to 1.50 cr. and above that. Due date of GSTR-1 for both classes shall be as under:

 

(a) Taxpayers with annual aggregate turnover uptoRs. 1.5 crore need 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 thanRs. 1.5 croreneed 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

 

3.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. However, filing of GSTR-1 will continue for the entireperiod without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.

4. Late fee paid by some of dealers for 3B shall be credited back to those taxpayers in electronic cash ledgers under the head taxes instead of fee. This move has been taken to facilitate taxpayers so that can use this money to pay their taxes.

5. Late fee for delay filing of form 3B has been reduced from existing Rs. 200 per day to Rs. 20 per day in case of Nil Returns where no tax is payable by Assessee. This reduction shall be applicable from October 17 onwards for susequent months.

Manual Filing for Advance Ruling

6. A facility for manual filing of application for advance ruling is being introduced for the time being. This is major relief because there is a lot of confusion over many issues which need clarification through advance ruling.

Benefits for Service Providers

7. 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 respectof goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

This means supply of services to Nepal and Bhutan has been made zero rated in line with supply to other countries which enjoy status of refund under section 54(3) of CGST Act.

8. As a further measure towards taxpayer facilitation, it has been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakh rupees. As a result, 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). A suitable exemption order shall be issued under section 23(2) of CGST Act for exempting these service providers from registration under section 24(ix).

Extension of Dates

9. Due to system issues and other technical problems due dates for various compliance forms have been extended as under:

S.No. Form Details Original Date Revised Due date
1

GST ITC-04 for July to September quarter

25-10-2017  31-12-2017
2

GSTR-4 for composition taxable persons

18-10-2017 24-12-2017
3

GSTR-5 for July 2017 

20.08.2017 or 7 days from the last date of registration whichever is earlier 11-12-2017
4 GSTR-5A for July 2017 20-08-2017  15-12-2017
5 GSTR-6 for July 2017  13-08-2017 31-12-2017
6 TRAN-1  30-09-2017

31-12-2017 with one-time revision facility.

 

 

10. In order to lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued to every Foreign Diplomatic Mission / UN  organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.

11. A complete overhaul of composition scheme is recommended by Council where eligible limit shall be enhanced from existing Rs. 01 cr. to 2 cr. by suitably amending proviso to sub section 1 of section 10 of CGST Act, 2017.

12. Uniform rate of tax @ 1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant. This change shall be prospective in nature and shall apply with the issuance of notification under respective rules and regulation.

13. Supply of services by Composition taxpayer up to Rs 5 lakh per annum will be allowed by exempting the same. In the previous meeting of Council exemption was given for interest and discount from banks and now in case of composition. Now those composition dealers who have service income up to 5 lakhs in a year shall not be barred from composition scheme.

14. Tax rate on restaurants has been reduced from existing 18%/12% to 5% looking at non passing of benefits of input tax credit to consumers by these restaurants. Now flat rate of 5% without input tax credit to restaurants is proposed by GST Council.

(i) 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.

(ii) Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.

(iii) 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.

(iv) Outdoor catering will continue to be at 18% with full ITC.

(v)  GST on services by way of admission to "protected monuments" to be exempted.

(vi)  GST rate on job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration, to be reduced to 5% with full input tax credit. 

15. Rate of tax has been reduced on 177 items from existing 28% to 18%, on 2 items from 28% to 12% and on some items rates has been decreased from existing 12%/18% to 5%. Following is the List of Items:

a)   Goods on which the Council has recommended reduction in GST rate from 28% to 18% include:

b) Goods on which the Council has recommended reduction in GST rate from 28% to 12% are:

Other changes/rationalisation of GST rates on goods:

a) 18% to 12%

b) 18% to 5%

c) 12% to 5%

d)  5% to nil

e)  Miscellaneous

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