Summary of 22nd GST Council Meeting held on 6th October 2017

Those changes will be applicable once notifications are issued. Refer Press Release for more details:

  1. Recommendations
  2. Relief Package for Exporters
  3. GST Rate Change for Goods
  4. GST Rate Change for Services

Summary:

S No. GST Area Proposal made
1 E Way Bill The e-way bill system shall be introduced in a staggered manner with effect from 01.01.2018 and shall be rolled out nationwide with effect from 01.04.2018. This is in order to give trade and industry more time to acclimatize itself with the GST regime.
2 GST Returns 1. Tax payer need not to file monthly returns (GSTR1, 2, 3 /3B) but to file GST returns quarterly basis whose aggregate turnover is less than Rs. 1.5 Cr. The Tax payer whose turnover is more than Rs. 1.5 Cr will continue to file all returns viz. GSTR1, 2, 3 & 3B (GSTR 3B is till Dec 17) on monthly basis.

2. The tax payers will continue to get provisional credit from quarterly filling assesses monthly on self-declaration in their own returns. Matching of invoice for these assesses will be done quarterly.

2. Due date of returns for Aug 17 onwards is yet to be notified.

3. The last date for filing the return in FORM GSTR-6 by an input service distributor for the months of July, August and September, 2017 shall be extended to 15.11.2017.

3 Reverse Charge When goods or services or both are received from unregistered person no need to pay GST on reverse charge basis therefore no need to prepare the invoice also upto 31.03.2018. However, specified services for which GST is payable on reverse charge basis will be continued.
4 Refund of IGST paid on Exports Relief to the Exporters:

Within the next 4 days i.e. by 10.10.2017 the held-up refund of IGST paid on goods exported outside India in July would begin to be paid. The August backlog would get cleared from 18.10.2017 and refunds for subsequent months would be handled expeditiously. Other refunds of IGST paid on supplies to SEZs and of inputs taxes on exports under Bond/LUT, shall be processed from 18.10.2017 onwards.

 

Forms / Procedure / Documentation is yet to be notified. We will update once it is notified by Government.

5 Usage of Advance Authorization & EPCG License Holders of AA / EPCG and EOUs would not have to pay IGST, Cess etc. on imports. Also, domestic supplies to holders of AA / EPCG and EOUs would be treated as deemed exports under Section 147 of CGST/SGST Act and refund of tax paid on such supplies given to the supplier.
6 Sale to Merchant Exporter Merchant exporters will now have to pay nominal GST of 0.1% for procuring goods from domestic suppliers for export.
7 E-wallet to Exporter The permanent solution to cash blockage is that of “e-Wallet” which would be credited with a notional amount as if it is an advance refund. This credit would be used to pay IGST, GST etc. The “e-Wallet” solution should be made operational w.e.f. 1st April 2018.
8 Bank Guarantee / Bond to Exporter Exporters have been exempted from furnishing Bond and Bank Guarantee when they clear goods for export. (Notification No. 37/2017-CT dated 4 October 2017)
9 GST Rate Changes 1. On sale of duty credit scrips, the GST on sale-purchase of these scrips is being reduced from 5% to 0%. (Input Tax Credit reversal impact needs to be evaluated)

2. On sale of Plastic Waste, paring & scrap (Tariff 3915), GST rate is reduced from 18% to 5%.

3. On sale of Paper waste & scrap (Tariff 4707), GST rate is reduced from 12% to 5%.

4. GST rate on Job Work for some products are reduced from 12% to 5%

10 Exemption to service provider for providing Inter-state Service It has now been decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services.
11 GST on Advance Taxpayers having annual aggregate turnover up to Rs. 1.5 crores shall not be required to pay GST at the time of receipt of advances on account of supply of goods. The GST on such supplies shall be payable only when the supply of goods is made.
12 TDS & TCS Provision Registration and operationalization of TDS/TCS provisions shall be postponed till 31.03.2018.
13 Leasing of Cars a. Leasing of vehicles purchased and leased prior to 1.7.2017, shall be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017.

b. The vehicles covered by the above leases (i.e. leases of vehicles purchased and leased prior to 1.7.2017), when disposed off/ sold shall also be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017;

14 Sale / Supply of Vehicle Sale/supply of vehicles by a registered person, who had procured the vehicle prior to 1st July 2017 and has not availed input tax credit of central excise duty, VAT or any other taxes paid on such vehicles, would be taxed at 65% of the applicable GST + Cess rate. This reduced rate would be applicable for a period of 3 years with effect from 1st July 2017.

 

 

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