23rd GST Council Meeting Recommendations
Changes recommended in Composition Scheme :
- Uniform rate of tax @ 1% under composition scheme for manufacturers andtraders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant.
- Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same
3. Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum.
4.The changes recommended by GST Council at (ii) and (iii) above will be implemented only after the necessary amendment of the CGST Act and SGST Acts.
- a)The return filing process is to be further simplified in the following manner:
- All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.
- For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into two categories. Details of these two categories along with the last date of filing GSTR 1 are as follows:
(a) Taxpayers with annual aggregate turnover uptoRs. 1.5 croreneed to file GSTR-1 on quarterly basis as per following frequency:
|Jul- Sep||31st Dec 2017|
|Oct- Dec||15th Feb 2018|
|Jan- Mar||30th April 2018|
(b) Taxpayers with annual aggregate turnover more thanRs. 1.5 croreneed to file GSTR-1 on monthly basis as per following frequency:
|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. However, filing of GSTR-1 will continue for the entireperiod without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.
- b)A large number of taxpayers were unable to file their return in FORM GSTR-3B within due date for the months of July, August and September, 2017.Late fee was waived in all such cases. It has been decided that 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. The software changes for this would be made and thereafter this decision will be implemented.
- c)For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a taxpayerwhose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day eachunder CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day eachunder CGST & SGST Acts).
EXEMPTIONS / CHANGES IN GST RATES / ITC ELIGIBILITY CRITERIA FOR SERVICES:
1. All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% GST without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC. 2. Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC. 3. 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. 4. Outdoor catering will continue to be at 18% with full ITC. 5. GST on Services by way of admission to “protected monuments” will be exempted. 6. 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.