21st GST Council Meeting

The 21st GST Council Meeting was held on 9th September 2017 at Hyderabad. In the GST Council Meeting, various decisions pertaining to the implementation and regulation of GST was decided. In this article, we look at some of the highlights and major decisions taken in the 21st GST Council Meeting.

GST Rate Changes

The 21st GST Council Meeting made major changes to the following :

The GST Council reduced the GST rate from 18% to 12% for services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of:
- A civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
- A structure meant predominantly for use as an educational, a clinical or an art or cultural establishment;
- A residential complex predominantly meant for self-use or the use of their employees or other persons like MPs/Members of State Legislatures, Panchayats, Municipalities, other local authorities, persons holding constitutional posts, chairperson/member/director in a body established by Central Government, State Government or local authorities etc.).
It has been decided to exempt GST for tickets to FIFA U-17 Football World Cup- 2017 events.
The GST Council has increased GST Cess on mid-sized cars by 2%, big cars by 5 % and SUVs by 7%. However, no changes to GST Cess rate reflected for small cars, 13-seater vehicles and hybrid cars.

GST Return Filing Due Date Changes

July GST Returns

To improve the ease of GST return filing, the Government has decided to set up a Committee to examine the IT challenges experienced by taxpayers in the filing of GST returns. Further, the following mentions the revised GST return due dates for the following types of returns:

The due date for filing GSTR-1 for July extended till 10th October 2017. For taxpayers with an annual turnover of more than Rs.100 crores, the due date for filing July GSTR-1 return will be 3rd October 2017.
The due date for filing July GSTR-2 return extended till 31st October 2017.
The due date for filing July GSTR-3 return extended till 10th November 2017.
The due date for all other GSTR-1, GSTR-2, GSTR-3 returns will be mentioned at a later date.

GSTR-4 Return

Though the due date for filing GSTR-4 return has not been extended, the GST Council removed some information in GSTR-4 to make the process of tax filing easier. GSTR-4 return must be filed by taxpayers who are registered under the GST Composition Scheme.

GSTR-3B Return

All taxpayers registered with GST should file GSTR-1, GSTR-2 and GSTR-3 in addition to GSTR-3B by December 2017. Earlier the taxpayer filed the GSTR-3B only for the month of July and August. However, after the GST Council Meeting, the registered taxpayers shall file the GSTR-3B for all the months from August to December 2017.

GST Composition Scheme

If a registered person (whether migrated or new registrant), unable to opt for composition scheme, then the GST Officer shall grant an alternative to register under the composition scheme till 30th September 2017. Persons registered until 30th September may avail for the benefit of composition scheme with a consequence from 1st October 2017.

GST Registration

GST registration is mandatory for any person who undertakes inter-state supply, irrespective of sales turnover. This rule has adversely affected certain types of persons engaged in manufacturing handicraft goods or job work. Know the difference between interstate and intra-state supply. Hence, the 21st GST Council announced few changed in the GST Registration rules. Currently, any person who engages in inter-state taxable supplies is not qualified for threshold exemption of Rs. 20 lacs (Rs. 10 lacs in special category states except for J & K) and is legally responsible for registration. It has been determined to permit an exemption from registration to persons engaging in inter-State taxable supplies of handicraft goods up to aggregate revenue of Rs. 20 lacs as long as the person has a Permanent Account Number (PAN) and the goods move under the cover of an e-way bill, irrespective of the worth of the consignment. Also, a job worker engaging in the inter-State taxable supply of job work service is not qualified for threshold exclusion of Rs. 20 lacs (Rs. 10 lacs in special category states except for J & K) and is responsible for registration. It has been determined to exempt those job workers from availing registration who are engaging in the inter-State taxable supply of job work service to a registered person for the entire duration the goods move under the cover of an e- way bill, notwithstanding the value of the consignment. However, this exemption will not be accessible to job work with reference to jewellery, goldsmiths’ and silversmiths’ wares as mentioned under Chapter 71 which do not necessitate e-way bill.

Transitional Provisions

The GST Transitional Provisions rules provide a mechanism for the transfer of input tax credit from previous tax regimes to the GST regime. With respect to transitional provisions, the following changes have been made:

The taxpayer can revise the FORM GST TRAN-I once.
The outstanding date for submission of FORM GST TRAN-I extended by one more month i.e. 31st October 2017

TDS and TCS Provisions

GST TDS registration must be completed by Government Departments. GST TCS provisions are applicable for e-commerce operators. The GST Portal did not accept TDS or TCS registration applications from 1st of July. However, the GST yet to make any announcements for GST TDS and TCS registration would commence from 18th September 2017. Though GST TDS and TCS registration would commence, the GST Council shall announce the date for collecting the TDS or TCS on a later period. Click here for GST Registration or GST Return Filing