Free trial to help you get started

  • 30 Days
  • Single GSTIN
  • Single User
  • Single Month
  • Multiple GSTIN and PAN
  • Multi Month
  • Multi User
  • ERP Integrations
Contact us

Impact Analysis – Changes based on 23rd GST Council Announcements

To give you a ready reckoner, here’s an exclusively crafted, Impact Analysis based on recent announcements made at 23rd GST Council Meeting.

Index

  1. Changes in Composition Scheme
  2. Changes in GSTR compliance
  3. 3. Others GSTR filing dates
  4. Impact on small businesses
  5. Impact on Service Providers
  6. Impact on Exporters
  7. Impact on Composition Scheme
  8. Impact on RCM
  9. Impact on advance receipts
    • For businesses with turnover under Rs 1.5 cr

Changes in Composition Scheme

  • Due date for GSTR-4 (Composition Scheme) extended to 24th December, 2017.
  • Composition scheme limit has been increased to Rs 1.5 crore.
  • 1% flat GST rate on turnover of taxable goods for Composition dealers (turnover of exempted goods to be excluded).
  • For manufacturers & traders, a 1% flat GST rate will apply.
  • Service providers not exceeding Rs. 5 lakhs in total sales, will now be eligible for compositions scheme.
  • Composition dealers can neither claim ITC nor make inter-state sales.

Changes in GSTR compliance

Till March 2018, all businesses will file GSTR-1 as per the rules below:

  • Turnover under Rs 1.5 Cr to file quarterly GSTR-1

    Period (Quarterly)

    Due Dates

    July- Sept

    31st Dec 2017

    Oct- Dec

    15th Feb 2018

    Jan- Mar

    30th April 2018

    ** Notification No. 57/2017 – Central Tax **

  • Turnover above Rs 1.5 Cr to file monthly GSTR-1

    Period (Monthly)

    Due Dates

    July to Oct

    31st Dec 2017

    Nov

    10th Jan 2018

    Dec

    10th Feb 2018

    Jan

    10th Mar 2018

    Feb

    10th Apr 2018

    March

    10th May 2018

    ** Notification No. 58/2017 – Central Tax **

  • All businesses to also file GSTR-3B by 20th of next month till March 2018.
  • Filing dates of GSTR-2 and GSTR-3 for July 2017 to March 2018 will be announced later.

Others GSTR filing dates

Return

Revised Due Date

GSTR-5 (Non Resident) – For July, August, September and October 2017

Notification No. 60/2017 – Central Tax

11th Dec 2017

GSTR-4 (Composition)

Notification No. 59/2017 – Central Tax

24th Dec 2017

GSTR-6 (ISD)

Notification No. 62/2017 – Central Tax

31st Dec 2017

ITC-04 (for job work) for quarter of Jul-Sep

Notification No. 63/2017 – Central Tax

31st Dec 2017

TRAN-1

31st Dec 2017

 

Impact on small businesses

  • Businesses with turnover upto Rs 1.5 cr. need to file returns and pay taxes once a quarter.

Impact on Service Providers

** vide: Notification No. 58/2017 – Central Tax **

  • If the aggregate turnover of a business is less than Rs. 20 Lakhs (10 lakhs in special category states except J&K), such businesses are exempted from GST registration, even if inter-state supplies are made.
  • Services provided by a GTA to an unregistered person exempted from GST.
  • TDS/TCS provisions postponed till 31.03.2018.

Impact on Exporters

Refund cheques to be processed as under:

  • For July exports by Oct 10
  • For August exports by Oct 18
  • Starting April 2018, every exporter to get an e-wallet with a notional amount for credit. Refund credit will be offset from that amount.
  • Merchant exporters to pay 0.1% GST to enable ITC claim for their suppliers.

Impact on Composition Scheme

  • Businesses ineligible for the composition scheme due to providing any exempt services will now be eligible for the composition scheme.
  • Eligibility of composition scheme will now be Rs 1.5 crore.
  • Traders will pay 1%, manufacturers 2% and restaurants 5%.
  • Those who have opted in for composition after GST came into effect, will have to file GSTR-1,2,3 for that part period.

Impact on RCM

Reverse Charge Mechanism suspended till 31.03.2018.

Impact on advance receipts

For businesses with turnover under Rs 1.5cr

Taxpayers having annual turnover upto 1.5 crore not required to pay GST at the time of receipt of advances for any supply of goods. Notification No. 66/2017 – Central Tax