23rd GST Council Meeting: How Is It Going To Effect You!

GST (Goods and Services Tax) was announced for the first time in 2000 by the government. Seventeen years later, it is now a reality with the date of implementation set for July 1, 2017. From August 3, 2016, when Rajya Sabha approved the GST bill for the first time in Amendment 122 to the Constitution. There have been many changes in the GST and the relevant rules and regulations.



23rd GST Council Meeting Updates

The meeting is held on November 11th, 2017 and the changes to be made prospectively from November 15th, 2017.

Composition System Changes

The composition pattern limit will increase to Rs 1.5 crore (can be extended to Rs 2 crore later).
1% GST rate for manufacturers and traders
1% composition tax on the sales of taxable assets (excluding unused turnover)
Those who provide goods and services (services that do not exceed Rs 5 lakhs in total) can benefit from the scheme of the compositions
Returns on the composition, expiration date GSTR-4 extended until December 24th
Composition distributors can not make interstate sales. Income tax benefits are not allowed.

Relief in accordance with GSTR

All companies will present GSTR-1 and GSTR-3B until March 2018.
The presentation dates GSTR-2 and GSTR-3 for the period from July 2017 to March 2018 will be subsequently resolved by an Official Committee
Turned to Rs 1.5 Cr to submit quarterly GSTR-1
Volume at Rs 1.5 Cr to Present GSTR-1 Monthly
All companies will present GSTR-3B before the 20th of the following month until March 2018.
Extending the GSTR-1 submission terms

For turnover up to Rs. 1.5 cr:



For turnover of more than Rs 1.5 cr:



Relief for service providers

All service providers with a turnover up to Rs 20 lakhs are exempt from GST registration. Including those provided by States or providing via E-Commerce, these service providers need not register.

Future challenges for restaurants

GST rate reduced to 5% with no tax credit supported.

Other measures to reduce taxpayers

Late charges have been reduced: for the late deposition of NIL returns, the late tax was reduced by Rs 200 per day to Rs 20 per day.
Delay fee: GSTR-3B's late fees for July, August and September have been waived. Any overdrafts for late payments paid during these months will be credited back to the Electronic Taxes "Tax" register and can be used to make GST payments.
Manual presentation of the Advocate Advance Application to be submitted

Exporting services to Nepal and Bhutan is exempt from GST and has now been allowed to claim a refund of the supported tax credit, if applicable.
TRAN-1 can be archived and revised until December 31, 2017.
The revision must be done only once.
Deadlines for the presentation of GSTR-2 and GSTR-3 for July-March 2018 will be prepared by the Committee of Officials. However, the subsequent presentation of GSTR-1 will not be affected.

Other GSTR file extensions



GST Rate Changes

The cost of pruning 28% of slabs to the government = 20,000 crore
1% composition fee for manufacturers and traders
Reduced from 28% to 18% p. Ex 15 November 2017 – shampoo, perfume, tiles, watches
Reduced from 28% to 12% – Wet vehicles, tanks
Reduced from 18% to 12% – Condensed milk, refined sugar, diabetic foods
Reduced from 12% to 5% – dry coconut, pasta dough, coconut products
Reduced by 5% to Nil – Duar food, 
khandsari Outdoor catering 18% with ITC
Restaurants within hotels (room rate> 7,500) are still 18% with ITC
Restaurants within hotels (room rate <7,500-5% without ITC
sugar, dried vegetables

GST law

The full GST framework is based on the GST law. It was drawn up by the Council of the GST, a committee formed by the Minister of the Economy of the Union (President), the Minister of the Union, the Minister responsible for finance or tax or any other minister appointed by each state government.

GST Changing rules

The GST is a constitutional amendment and any modification of the law will also affect the rules contained therein. Billing rules, penalty rules, rules that define the taxing point: these are just some of the examples of any rule change in the model law.