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Changes in GST – 22nd GST Council Meeting

Amidst the much chaos and turmoil wandering around GST rate slabs and other complexities which are now slowing popping up, the GST Council had its 22nd meeting under the chairmanship of the Union Minister of Finance and Corporate Affairs, Mr. Arun Jaitley in New Delhi on 6th October 2017.

The declarations circled around Composition Scheme, relaxed norms for SMB segment, lessened tax rates for some supplies and few other facilitation measures. The Council issued a 12 point comprehensive press release, of which the excerpts are as follows:

Composition Scheme:

  1. The threshold annual turnover for participating in the composition scheme has been increased to Rs. 1 crore from Rs. 75 lakhs. The limit for composition scheme participants in the special category states have also been increased to Rs. 75 lakhs from Rs. 50 lakhs except Jammu and Kashmir and Uttarakhand. The due date for participating in this refreshed composition scheme has been finalized as 31st March 2018. The option once exercised shall become operational from the first day of the month immediately succeeding the month in which the option to avail the composition scheme is exercised.

    The return GSTR-04 is to be filed by the new composite tax payers only for that portion of the quarter from when the scheme applies and will be filing returns as a normal tax payer for the preceding tax period.

    The relaxed and increased threshold has been done after the unanimous loud voices from PAN India business associations and feedback from industry experts and business societies. It will surely widen the reach of benefits of the composition scheme to larger sections of the society, particularly the MSME sector.

  2. Earlier, anyone who fulfilled all the criteria of the Composition Scheme but was providing any exempt service [extending deposits to bank which generate interest] was ineligible to opt for the Composition Scheme. However, such persons have now been qualified and can now opt for it.
  3. To constantly monitor, improve and amplify the benefits of the Composition scheme, a special body GOM [Group of Ministers] shall be formed.

Relaxed norms for small and medium businesses:

  1. Earlier anyone making an inter-state supply [except an inter-state job worker] was mandatorily required to enroll for GST, irrespective of the turnover. The Council announced to exempt those service provider from registering, where the annual turnover is within 20 lakhs [ 10 lakhs for special category states, barring Jammu and Kashmir], in case of an inter-state supply of services too. The move will surely cut the compliance costs for smaller businesses.
  2. For the time being, all the tax payers would be filing GSTR-3B monthly, until December’17 and also file GSTR -01, 02 and 03 for July, August and September 2017. Due dates for July’17 have already been declared and for August and September ’17 the due dates would soon be announced.To ease and smoothen the return filing process for the SMB segment, the businesses with an annual turnover of Rs. 1.5 crore would now be filing returns for only once a quarter via forms GSTR-01, 02 and 03 starting from the third quarter [October – December 2017] of this financial year. Though the due dates for this quarterly return filing are still to be announced.
  3. The reverse charge under Section 9(4) module have been deferred till 31st March 2018, until the committee revisits and re-reviews its applicability and implications.
  4. There have been relaxations on the advances received front too, which was attracting GST earlier and was really cumbersome upon the tax payers. Now, the businesses up to an annual turnover of Rs. 1.5 crore have been exempted to pay GST on the advances received and GST will only be applicable and payable, when the actual supply of goods happen.
  5. GTAs [Goods Transport Agencies] were not supporting and providing services to the unregistered entities and this was causing a major mess in the social and economic fabric. Now, the services of a GTA are exempted from GST and they can now fearlessly render their services to everyone.

Other facilitating measures:

  1. The registration and operationalization of TDS/TCS provisions is postponed till 31st March 2018 to give the much needed breathing space to the trade, industry and government departments to soundly prepare and equip themselves.
  2. The e-way bill module shall be launched and applicable in a beta version from 1st January 2018 and rolled nationwide from 1st April 2018, giving the business society much time to become accustomed from GST.
  3. The due date to file return for a composite tax payer for July-September 2017 is extended to 15th November 2017 in the form GSTR-04. The due date to file return for an input service distributor for July-September 2017 is also extended to 15th November 2017 in the form GSTR-06.
  4. Needed amendments have been made in the invoice rules to ease the tax payers.

All the measures taken in this 22nd GST Council meeting are aimed to bring much relief and calm down the business society at large, which is struggling enough to keep pace with the new generation taxation regime. The government seems to be sensitive towards the business community and is probably doing and bringing its best foot forward time to time.

Comments 11

Mohsin

October 19, 2017

Dear Sir,

Tum logo ne 22nd council mai bola to late fees waived ho jaegi fir be sep GSTR 3B mai Lag rahi hai kuch karo sir,

Mohsin
9924610046

CA Ruchika Tulsyan

October 23, 2017

Dear Mohsin,
in 22nd GST Council we never told that late fee is waived by government, in earlier meeting notification for waiving penalty on late filing of GSTR-3B for July month was released by government but not for august and September.
Secondly, in September month late fees which is coming on portal belongs to august month not for July and you have to pay it if you have late filed GSTR-3B for august month.

Tauqeer Hussain

October 26, 2017

Hi Ruchika Ji,

Our september return has been already filled, So do we have to file return in december for oct-nov-dec?? Our turnover is under 1.5 cr and we are normal GST taxpayer.

Please advise.

CA Ruchika Tulsyan

November 1, 2017

Till December you need to file GSTR-3B
GSTR-1,2,3 for the month of July, August, September and after that
for oct-nov-dec you have to file quarterly return.

Ashish Kumar

October 24, 2017

Dear Sir, when will the new rates that revised in 22nd GST councils meeting will be implemented. There is no such notification came till date.

Thanks & regards
Ashish

CA Ruchika Tulsyan

November 8, 2017

Till the time no notification will come officially rate will not be deemed to be effective and if any notification will come you can check from CBEC site.

Satyam

October 26, 2017

Hello,
Is it true that definition of total turnover has been amended?
Now it should not include Nil rated , zero rated and exempted sales
Therefore , we need to pay 1% GST on remaining sales.
If its true please tell me the notification no.

CA Ruchika Tulsyan

November 8, 2017

There is no notification in which such amendment have introduced.

VISHNU

November 7, 2017

CAN WE HAVE THE NOTIFICATION WITH REGARD TO GST 22ND COUNCIL MEETING, ON E WAY BILL

govind jajoo

November 9, 2017

still don’t know about weather way bill is required or not for interstate business. some states are penalising like ap for without way bill. pls suggest

CA Ruchika Tulsyan

November 10, 2017

E-way is required for inter-state movement of Goods as well.
Rule 138 clearly mention that 
Every Registered person who causes movement of goods of consignment value exceeding 50000/- Rs.
   (1) In relation to supply
   (2) for reasons other than supply
   (3)due to inward supply from an unregistered person
shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB-01 electronically , on the common portal.

2 conditional clause is also mention in same rule e.g. where goods are sent by a principal located in one state to a job worker in other state and in case of handicraft goods transportation from one state to another.

So, according to my understanding in case of interstate as well you need to file E-way Bill