Updates for GST Council 23rd Meeting

The 23^rd meeting of Goods and Service Tax (‘GST’) Council took place at Guwahati on Friday, 10^th November 2017. The GST Council in order to alleviate the concerns of the taxpayers pertaining to return filing glitches and higher tax levy has recommended substantial facilitative measures. An epitome of these decisions along with certain recommendations is presented below:- 

1. Pruning of Tax rates

1. The GST council has substantially slashed the list of items under 28% tax slab from 227 to mere 50 items. The Council has decided to keep only 50 items, mostly demerit, sin and luxury goods in top 28% bracket. 
2. Paints, cement have been retained in the 28 percent tax bracket. Luxury goods like washing machines and air conditioners have been retained at 28 percent. 
3. The GST Council has provided relief to several sectors by putting a host of consumer items from 28% into lower tax brackets of 18% and 12%. For instance marbles, plywood, detergents, wrist watches etc. 
4. 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. 
5. Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC. However, restaurants in hotel premises having room tariff of Rs 7500 per unit per day or above will attract GST of 18% with full ITC. 
6. The reshuffling of items from higher to lower slab will result in estimated Government revenue loss of Rs 20,000 crore.   

2. GST Return Compliances

 
The return filing process is to be further simplified with the following recommendations:-
 

1. All taxpayers would file the return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018. 
2. The Council overseeing the technical glitches in auto-populated GSTR-2A has recommended continuing with GSTR-1 alone for the period July 2017 to March 2018. However, 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. 
3. The tabulated summary of due dates for filing of  GSTR-1 till March 2018 is as follows:- 

• Taxpayers with annual aggregate turnover up to Rs. 1.5 crore to file GSTR-1 on quarterly basis as:-

• Taxpayers with annual aggregate turnover more than Rs. 1.5 crore to file GSTR-1 on monthly basis as:-

4. The late filing fees for GSTR-3B return has been rationalized substantially for the taxpayers with nil taxable liability from Rs 200 per day to Rs 20 per day. 
5. The GST council has recommended the below-mentioned extension of due dates for below-mentioned return filing:-

 
The revised due date for subsequent tax period will be announced in due course.
 

3. Changes recommended in Composition Scheme

1. The GST Council has further proposed to rationalize the limits for availing Composition scheme from Rs. 1 Crore per annum to Rs. 1.5 Crore per annum. However, the increased limit could come into effect upon necessary amendment in the Central Goods and Service Tax Act (‘the CGST’) and State Goods and Service Tax Act (‘the SGST’) for the increase in maximum eligibility limit for composition scheme from Rs. 1 crore. 
2. Supplier of services up to Rs 5 lakh per annum will be allowed to continue availing the exemption under Composition scheme. 
3. To bring uniformity in the tax rates under composition scheme it is proposed to tax manufacturers and traders at a similar rate of 1%. However, for traders, turnover will be counted only for the supply of taxable goods.