12 Nov 2017

KEY changes in GST 23rd Council Meeting on 10.11.2017

(Will be applicable from the date of notification to be issued most likely from 15.11.2017)

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

ii. In all other cases: Rs. 50 per day

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:

GST Rate Reduced from 28% to 18%

For the following goods, GST rate has been reduced from 28% to 18%. After the proposed change, GST @ 28% rate applicable only on 50 items. Majority of the items for which GST rate was reduced from 28% to 18% are building materials, personal care items and equipments.

Building Materials

  • Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors.

  • Electrical boards, panels, consoles, cabinets etc for electric control or distribution.

  • Particle/fibre boards and ply wood.

  • Article of wood, wooden frame, paving block.

  • Sanitary ware and parts thereof of all kind

  • Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic

  • Slabs of marbles and granite

  • Goods of marble and granite such as tiles

  • Ceramic tiles of all kinds

  • Fans, pumps, compressors

  • Lamp and light fitting

  • Door, windows and frames of aluminium.

  • Articles of plaster such as board, sheet

  • Articles of cement or concrete or stone and artificial stone

  • Articles of asphalt or slate

  • Articles of mica

  • Ceramic flooring blocks, pipes, conduit, pipe fitting Wall paper and wall covering

  • Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware

Furniture and Home Decorations

  • Furniture, mattress, bedding and similar furnishing

  • Miscellaneous articles such as vacuum flasks, lighters

  • Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases

  • Articles of cutlery, stoves, cookers and similar non electric domestic appliances

  • All musical instruments and their parts

  • Artificial flowers, foliage and artificial fruits

  • Office or desk equipment

  • Fire extinguishers and fire extinguishing charge

  • Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment

Personal Care Items

  • Detergents, washing and cleaning preparations

  • Liquid or cream for washing the skin

  • Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient;

  • Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers

  • Perfumes and toilet waters

  • Beauty or make-up preparations

  • Razor and razor blades

Electronic & Office Stationeries

  • Primary cell and primary batteries

  • Multi-functional printers, cartridges

  • Electrical, electronic weighing machinery

  • Electrical apparatus for radio and television broadcasting

  • Sound recording or reproducing apparatus

  • Signalling, safety or traffic control equipment for transports

  • Goggles, binoculars, telescope

  • Cinematographic cameras and projectors, image projector

  • Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology

Clothing & Personal Items

  • Wrist watches, clocks, watch movement, watch cases, straps, parts

  • Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal

Equipment, Firework & Industrial Items

  • Fork lifts, lifting and handling equipment

  • Bull dozers, excavators, loaders, road rollers

  • Earth moving and levelling machinery

  • Escalators, Cooling towers, pressure vessels, reactors

  • Crankshaft for sewing machine, tailor’s dummies, bearing housings, gears and gearing; ball or roller screws; gaskets

  • Explosive, anti-knocking preparation, fireworks

  • Rubber tubes and miscellaneous articles of rubber

  • Solvent, thinners, hydraulic fluids, anti-freezing preparation

Food and Food Preparations

  • Cocoa butter, fat, oil powder,

  • Extract, essence ad concentrates of coffee, miscellaneous food preparations

  • Chocolates, Chewing gum / bubble gum

  • Malt extract and food preparations of flour, groats, meal, starch or malt extract

  • Waffles and wafers coated with chocolate or containing chocolate

GST Rate Reduced from 28% to 12%

  • Wet grinders consisting of stone as grinder

  • Tanks and other armoured fighting vehicles

GST Rate Reduced from 18% to 12%

  • Condensed milk

  • Refined sugar and sugar cubes

  • Pasta

  • Curry paste, mayonnaise and salad dressings, mixed condiments and mixei seasoning

  • Diabetic food

  • Medicinal grade oxygen

  • Printing ink

  • Hand bags and shopping bags of jute and cotton

  • Hats (knitted or crocheted)

  • Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery

  • Specified parts of sewing machine

  • Spectacles frames

  • Furniture wholly made of bamboo or cane

GST Rate Reduced from 18% to 5%

  • Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya

  • Flour of potatoes packed in unit container of a brand name

  • Chutney powder

  • Fly ash

  • Sulphur recovered in refining of crude

  • Fly ash aggregate with 90% or more fly ash content

GST Rate Reduced from 12% to 5%

  • Dry coconut

  • Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit]

  • Idli, dosa batter

  • Finished leather, chamois and composition leather

  • Coir cordage and ropes, jute twine, coir products

  • Fishing net and fishing hooks

  • Worn clothing

  • Fly ash brick

GST Rate Reduced from 5% to 0%

  • Guar meal

  • Hop cone (other than grounded, powdered or in pellet form)

  • Certain dried vegetables such as sweet potatoes, maniac

  • Unworked coconut shell

  • Fish frozen or dried (not packed in unit container of a brand name)

  • Khandsari sugar

 GST Rate Changes for Other Goods

GST rates on aircraft engines has been changed from 28% or 18% to 5%. Also the GST rate for aircraft tyres has been changed from 28% to 5% and aircraft seats from 28% to 5%.

The GST rate on bangles of lac/shellac has also been changed from 3% GST rate to Nil.

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