Major Recommendations made by the GST Council in the 23rd meeting (10th November, 2017) :- 15/11/2017, by Remesh Naick FCA

Major Recommendations made by the GST Council in the 23rd meeting (10th November, 2017) :- 15/11/2017, by Remesh Naick FCA

Relaxed deadlines for return filing

  • Form GSTR 3B to continue till March 2018, with payment of tax by 20th of the succeeding month
  • For filing GSTR 1 taxpayer would be divided into two categories :
  • Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 on quarterly basis as per the following schedule :
    Period Dates
    Jul-Sep 31st Dec 2017
    Oct-Dec 15th Feb 2018
    Jan-Mar 30th April 2018


  •  Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file GSTR-1 on monthly basis as per following schedule :
    Period Dates
    Jul- Oct 31st Dec 2017
    Nov 10th Jan 2018
    Dec 10th Feb 2018
    Jan 10th Mar 2018
    Feb 10th Apr 2018
    Mar 10th May 2018


  • The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March 2018 would be worked out by a Committee of Officers. However, filing of GSTR-1 will continue for the entire period without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.

Reduced fines on late filing

  • Fine for late returns has been slashed by 90% to a mere Rs. 20 per day from Rs. 200 per day for a taxpayer with nil liability.
  • Late fine for not submitting the GSTR-3B within due dates for the months of July, August and September 2017 has been waived off
  • All the late fee collected on late filing of FORM GSTR 3B will be re-credited to their electronic cash ledger under “Tax”
  • From October 2017 onwards the amount of late fee on nil returns will be Rs.20 per day

Changes in rate Structure

  • 178 Items shifted from 28% slab to lower slabs leaving apart sin goods and cess applicable goods.
  • Restaurants to have no more input tax credit and the rate of tax is changed to 5%.But Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC
  • Outdoor catering – 18% with ITC.

Changes in composition scheme

  • Manufacturers and traders would now operate at a standard rate of 1%
  • Threshold for the composition scheme has been increased to Rs. 1.5 crores from the current limit of Rs. 1 crore
  • Those supplying goods and services (services not exceeding Rs 5 lakhs in total) are eligible for compositions scheme
  • Composition Returns, GSTR-4  due date extended to 24th December

Relief for service providers

All service providers having inter-state supply or supply through e-commerce operator are exempt from GST registration with turnover up to Rs 20 lakhs.

Other reliefs granted

  • Export of services to Nepal and Bhutan are exempt from GST and have now been allowed to claim a refund of input tax credit paid if any
  • TRAN-1 can be filed and revised till 31st December 2017. Revision to be done only once.
  • Manual filing for Advance Ruling application to be introduced

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