Outcome of 21st GST Council Meeting

The GST Council in its 21st meeting in Hyderabad on 9 September 2017 has recommended various measures to ease the compliances for the taxpayers in the GST regime. Below is a gist of decisions taken by the GST Council:-

1. Revised due dates for regular GST returns for July 2017

Return type Types of taxpayers Revised due date
GSTR 1 – Return for outward supplies Turnover exceeding INR 100 crore (INR 1 billion) 3 Oct 2017
Turnover up to INR 100 crore (INR 1 billion) 10 Oct 2017
GSTR 6 – Return by Input Service Distributor Input service distributors 13 Oct 2017
GSTR 2 – Return for inward supplies All taxpayers 31 Oct 2017
GSTR 3 – Monthly return All taxpayers 10 Nov 2017

There is no change in the timeline for submission of GSTR 4 (quarterly return for composition taxpayers) for the quarter of July to September 2017. However, Table 4 (details of inward supplies and supplies on which tax is to be paid under reverse charge by the composition taxpayer) is not required to be furnished for this quarter.

In addition, the requirement to submit GSTR-4A (auto-drafted details of inward supplies for composition taxpayers) for the quarter of July to September 2017 has been withdrawn.

The revised timelines for submission of GST returns for the subsequent periods would be notified in due course.

2. GSTR – 3B

Though the due dates for various GST returns have been extended as above, there is no change in the due date for payment of tax. In addition, the taxpayers will have to continue submitting return in Form GSTR-3B on a monthly basis for the months of August 2017 to December 2017. Earlier, the requirement of furnishing Form 3B was only for July and August 2017.

3. Clarifications on Form TRAN – 1

The due date for submission of Form TRAN – 1 (statement for transitional credit) has now been revised to 31 October 2017. The Council also decided to permit one-time revision of Form TRAN – 1 statement after its submission.

4. Registration for taxpayers required to withhold (TDS) or collect (TCS) GST

The Council has decided that registrations for persons liable to withhold or collect GST will commence from 18 September 2017. The date from which the provisions for withholding or collection of GST will come into effect will be notified a later date.

5. Changes in GST rates and Compensation Cess

GST Council approves revision of GST rates for 40 items; Accordingly, some of the items now exigible to 5% are Duty Credit Scrips, walnuts, dried tamarind, roasted gram, oil cakes, dhoop batti, corduroy fabrics (with no ITC refund), saree fall, cotton quilts not exceeding Rs. 1000 per piece and paper-mache articles; Idli / dosa batters, rubber bands, textile caps, idols of wood / metal / stone, wooden / porcelain kitchenware and tableware, nozzles for drip irrigation equipment / sprinklers, statues and other ornamental articles, and cotton quilts exceeding Rs.1000 per piece will be taxable at 12%; On the other hand, custard powder, medical grade sterile disposable gloves of plastic, plastic raincoats, kitchen gas lighters, and computer monitors upto 20” shall attract 18%; GST at nil rate will apply to cotton seed oil cake, idols made of clay, khadi fabric, brooms and brushes and indigenous handmade musical instruments, while rough industrial diamonds would be taxed at 0.25%; GST Council also decides to amend Notifications so as to provide that (1) a brand registered as on May 15, 2017 shall be deemed to be registered brand for levy of 5% GST, irrespective of whether same is deregistered subsequently, (2) a brand registered as on May 15, 2017 under Copyright Act and any other law for time being in force shall also be treated as registered brand for levy of 5% GST, (3) a mark or name i.r.o. which actionable claim is available shall be deemed to be registered name for 5% GST.

Further, it has been agreed by the GST Council to levy an additional compensation cess of 2% on mid-sized cars, 5% on the large cars and 7% on SUVs. The date of implementation of the additional cess would be notified in due course. The cess on small and hybrid cars remains unchanged.

6)   Other important decisions

Particulars GST Council recommendation
Composition Scheme Registered persons (migrated or newly registered) unable to opt for composition scheme earlier are now given an option to avail the scheme till 30 September 2017.

The benefits of the composition scheme would be available to these taxpayers from 1 October 2017.

Relaxation in registration requirements for job workers Registered persons (migrated or newly registered) unable to opt for composition scheme earlier are now given an option to avail the scheme till 30 September 2017.

The benefits of the composition scheme would be available to these taxpayers from 1 October 2017.

Relaxation in registration requirements for artisans & folk artists Registered persons (migrated or newly registered) unable to opt for composition scheme earlier are now given an option to avail the scheme till 30 September 2017.

The benefits of the composition scheme would be available to these taxpayers from 1 October 2017.

Committee of ministers for resolving technology related challenges Registered persons (migrated or newly registered) unable to opt for composition scheme earlier are now given an option to avail the scheme till 30 September 2017.

The benefits of the composition scheme would be available to these taxpayers from 1 October 2017.

Committee of officers for exports Registered persons (migrated or newly registered) unable to opt for composition scheme earlier are now given an option to avail the scheme till 30 September 2017.

The benefits of the composition scheme would be available to these taxpayers from 1 October 2017.

 

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