Goods and Services Tax – GST – By: – Bimal jain – Dated:- 13-11-2017 – Dear Sir/Ma am, Greetings of the day!! After the GST Council s decisions in its 23rd meeting, our Hon ble Prime Minister Narendra Modi tweeted that jan bhagidari was at the core of the government s functioning and all its decisions were people-inspired, people-friendly and people-centric . Indeed, the GST Council in its 23rd meeting has made sweeping changes to the present framework of GST, allowing taxpayers and small businesses to breathe easy. Importantly, the highest GST tax slab was slashed to retain only 50 items at 28% tax bracket. Effective from November 15, 2017, as many as around 233 items from chocolates, detergents to granite and marble will become cheaper – 177 items moving from 28% to 18%, 2 items from 28% to 12% and around other 54 items also moving to lower tax brackets. As per government algorithm, these measures are expected to cost the exchequer around ₹ 20,000 crore. Additionally, the GST
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
her or not they were air-conditioned. Despite of these wholesale changes in GST rates and other procedures, we are still in the state of flux as to when the apparent flaws in the basic structure of GSTN portal will be sorted out. It is being stated that a committee under GSTN chairman Ajay Bhushan Pandey has been set up to look into the matter of making filing of GSTR-2 and GSTR-3 business friendly, but complete removal of all forms of technical glitches is still-to-watch scenario. Even after so much of rates re-shuffling, goods like washing machine, AC, etc., which are actually the need of aam aadmi, is still categorised as luxury item falling in 28% tax bracket. Further, marbles and certain sanitary fittings will now be taxed at lower rate than cement, which creates an awkward position as cement is the first basic material for construction. May be we will see some more reductions in future to align these gaps. The changes recommended in the 23rd GST Council meeting can be summarized
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
STR-3 for the previous month/ period till March, 2018 and 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. A large number of taxpayers were unable to file their return in Form GSTR-3B within due date for the months of July, August and September, 2017. Late fees was waived in all such cases. It has been decided that where such late fees was paid, it will be re-credited to their Electronic Cash Ledger under Tax head instead of Fee head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented. For subsequent months, i.e. October 2017 onwards, the amount of late fees payable by a taxpayer whose tax liability for that month was NIL will be S
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
.2017 4. GSTR-5A for July, 2017 by OIDAR Service Providers 20.08.2017 15.12.2017 5. GSTR-6 for July, 2017 by ISD 13.08.2017 31.12.2017 6. TRAN-1 30.09.2017 31.12.2017 (One-time option of revision also to be given till this date) Revised due dates for subsequent tax periods will be announced in due course. 3. Manual Filing of Application for Advance Ruling A facility for manual filing of application for advance ruling is being introduced for the time being. 4. Further benefits for Service Providers Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan. In an earlier meeting of the GST Council, it was decided to exempt those service providers whose annual aggregate turnover is less than ₹ 20 lakhs (Rs. 10 lakhs in special category states except J & K) from obta
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nal Affairs. Relevant notifications for all of the above decisions will be issued shortly, so as to be effective from 15.11.2017. 6. Changes recommended in Composition Scheme Uniform rate of tax @ 1% under composition scheme for manufacturers and traders (Tax to be paid on Taxable turnover excluding exempt supply of goods). No change for composition scheme for restaurant. Composition Dealers will be allowed to make Supply of services upto ₹ 5 Lakhs per annum within overall limit of composition dealer. Annual turnover eligibility for composition scheme will be increased to ₹ 2 Crore from the present limit of ₹ 1 Crore under the law. Thereafter, eligibility for composition will be increased to ₹ 1.5 Crore per annum. This change recommended by the GST Council will be implemented only after the necessary amendment of the CGST Act and SGST Acts. 7. Changes relating to GST rates on Restaurant Service All stand-alone restaurants, whether air conditioned or not, will at
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rtain other conditions. Exemption from IGST on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount. To extend IGST exemption presently applicable to skimmed milk powder or concentrated milk, when supplied to distinct person under Section 25(4) for use in production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act. Exemption from IGST on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions Exemption from GST on specified goods, such as scientific or technical instruments, software, prototype supplied to public funded research institution or a university or IISc, or IITs or NIT. Coverage of more items, such as temporary import of professional equipment by accredited press persons visiting India to cover certain events, broadcasting equipments, sports items, testing equipment, under ATA carnet syste
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
lk consumer. 11. Rationalization of certain exemption entries – The existing exemption entries w.r.t. services provided by Fair Price Shops to the Central Government, State Governments or Union Territories by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin, is being rationalized so as to remove ambiguity regarding list of items and the category of recipients to whom the exemption is available. In order to maintain consistency, entry at item (vi) of Sr. No.3 of Notification No. 11/2017-Central Tax (Rate) will be aligned with the entries at items (ii), (iii), (iv) and (v) of SI.No.3. [The word services in entry (vi) will be replaced with Composite supply of Works contract as defined in Clause 119 of Section 2 of CGST Act, 2017 ]. In order to obviate dispute and litigation, it is proposed that irrespective of whether permanent transfer of Intellectual Property is a supply of good
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =