GST - Key Changes in the 23rd GST Council Meeting

Decisions regarding amendment in slab rates:

1. Council approves Tax cut on items fall within the 28% slab and slash rates for daily use items, plastic products and hand-made furniture. It has been decided to cut keep only 50 luxury and 'sin' goods like tobacco in the highest slab. Almost 227 items were there in 28% GST slab.; now only 50 items remain. Most of them are luxury items, demerit/sin goods, construction goods.

2. Daily use products such as shampoo, chocolates, beauty products and construction items such as marble and granite will cease to exist in the 28% slab.

3. Restaurants excluding 5-star can charge GST @5% without input tax credit. Restaurant in 5-star hotels where room rent per day Rs. 7,500/- and above can charge GST @18% with input tax credit.

4.Paints and Cement have been retained in the 28% Tax bracket. Further, outdoor catering will be taxed at 18% with input tax credit.

5. It is proposed to revise the GST rates for the following products:


Product Description

Earlier GST rate

Revised GST rate

Detergents

28%

18%

Shaving products

28%

18%

Chocolates

28%

18%

Marbles/Granite

28%

18%

Plywood

28%

18%

Washbasin

28%

18%

Sanitary wash

28%

18%

Chewing gum

28%

18%

Beauty products

28%

18%

Wet grinder

28%

12%

Armoured Vehicles

28%

12%

Wrist Watch

28%

18%

Stove

28%

18%

Construction related items

28%

18%


6. Below is no. of items moved from one tax slab to another:


No. of items

Old Tax Slab

New Tax Slab

13 items

18%

12%

6 items

18%

5%

8 items

12%

5%

6 items

5%

Nil

178 items

28%

18%


Decisions regarding filing of various Forms:

1. Filing of GSTR-3B will continue till March'18. There is no option to revise Form GSTR-3B.

2. Facility to revise transitional form i.e. TRAN-1 has been started from today i.e. 10.11.2017.

3. Members also proposed to extend time limit for filing of various forms as under:


Forms for the month of July'17

Earlier Revised date

Extended date

GSTR-4

15.11.2017

24.12.2017

GSTR-6

15.11.2017

31.12.2017

GSTR-5

20.08.2017

11.12.2017

GSTR-5A

20.08.2017

15.12.2017

TRAN-1 (With one time revision)

30.11.2017

31.12.2017

ITC-04 for July'17 to Sept'17

30.11.2017

31.12.2017


4. Revised filing of GSTR-1 dates for the period July'17 to Mar'18 for the different taxpayers:


Taxpayers having annual aggregate T/o upto Rs. 1.5 Crore

Taxpayers having annual aggregate T/o more than Rs. 1.5 Crore

Period

Date

Period

Date

July'17 to Sept'17

31.12.2017

July'17 to Oct'17

31.12.2017

 

Oct'17 to Dec'17

15.02.2018

Nov'17

10.01.2018

Dec'17

10.02.2018

Jan'18 to Mar'18

30.04.2018

Jan'18

10.03.2018

Feb'18

10.04.2018

Mar'18

10.05.2018


5. The time period for filing GSTR-2 and GSTR-3 for the months of July'17 to March'18 would be worked out by a Committee headed by GSTN Chairman.

Other major decisions:

1. It is decided to again increase cap for composition dealer from Rs. 1 Crore to Rs. 2 Crore and threshold limit from Rs. 75 Lacs to Rs. 1.5 Crore. GST Council has decided to tax @ 1% GST to both manufactures as well as traders under composition scheme. However, they cannot utilize input tax credit (ITC) and cannot make inter-state sale. Further, in case of trader or manufacturer can also opt for composition scheme who provides service upto Rs. 5 Lacs p.a.

2. While computing Tax under composition scheme; only taxable turnover shall be considered. Means no need to consider exempt supply.

3. Late fees for the month of July'17 to Sept'17 has already been waived off. From the subsequent months, late fees for filing of GSTR-3B has been decreased as under:


Return type

Actual Late Fees

Revised Late Fees

Nil return

Rs. 200 per day

Rs. 20 per day

Other Tax payer

Rs. 200 per day

Rs. 50 per day


4. 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 effecting such exempt supply of services to Nepal and Bhutan.

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CA Jigar Shah 
on 13 November 2017
Published in GST
Views : 8019
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