GST 23rd Meeting Highlights
“Goods and Service Tax” Changes in GST return filling
• The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March 2018 would be finalized by a Committee of Officers. Till then, filing of GSTR-1 will continue for the entire period without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.
• Time period for GSTR-3B has been extended and all taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.
Changes in GST return fillingC. FORM GSTR-1 till March 2018, taxpayers would be divided into two categories
(a) Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 on quarterly basis
(b) Taxpayers with annual aggregate turnover more than Rs.1.5 crore need to file GSTR-1 on monthly basis
Changes in GST return filling
(d) Many taxpayers were unable to file their return in FORM GSTR-3B within due date for the months of July, August and September. Late fee was waived in all such cases. It has been decided that where such late fee was paid by assessee, it will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable taxpayer to use that amount for discharge of their future tax liabilities.
(e) October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts). Change Proposed in Composition Scheme •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 in composition scheme for restaurant. •Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same •Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum.
Change Proposed in GST rates
- All restaurants irrespective of air conditioned or otherwise, will attract 5% GST without ITC.
- Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will 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.
- Outdoor catering will continue to be at 18% with full ITC.
- GST on Services by way of admission to “protected monuments” will be exempted.
- The rate of GST 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, shall be reduced to 5% with full ITC.
Further benefits for service providers
a) 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.
b) In an earlier meeting of the GST Council, it was decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services. 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 ecommerce 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).