Decisions of 22nd GST Council meeting - 6th Oct 2017

[Ashwarya Agarwal]

GST Update (Decisions of 22nd GST Council meeting which is yet to be notified):

1. Benefit for Composition Scheme

1.1 Threshold turnover to opt for composition scheme is raised from 75 lacs to 1 crore;

1.2 Person opting for composition scheme was restricted from providing any exempted / taxable service. But now a composite dealer can provide exempted service also. Eg. A doctor running clinic / hospital and pharmacy can now opt for composition for pharmacy;

1.3 A Group of Ministers shall be formed to make composition scheme more attractive.

2. Earlier any person providing inter-state service (other than job worker) was not eligible for threshold exemption of 20 lacs. However now such service providers can avail such benefit. Any person who has already taken registration may opt for cancellation;

3. Now small and medium businesses with annual aggregate t/o upto ₹ 1.5 crore shall file GSTR-1 , 2 & 3 returns on Quarterly basis and also make payment on Quarterly basis. This provision shall be effective from Oct-Dec 2017 quarter. However GSTR-3B will have to be filed on Monthly basis till December'17 by all assessees;

4. Liability for payment of tax in respect of un-registered expenses shall be deferred till 31st March 2018. This extent of applicability of this exemption shall be confirmed after it is notified;

5. Small units having aggregate t/o upto 1.5 crore are exempted from payment of GST on advance received against supply of Goods. This exemption is not for supply of service;

6. Service of GTA provided to un-registered person shall be exempted;

7. Provision for GST TDS/TCS shall be extended till 31st March 2018;

8. E-way bill shall be implemented in staggered manner w.e.f 1st January 2018 and full-fledged roll out w.e.f 1st April 2018;

9. Export benefit:

9.1 Refunds of input tax for exports outside India shall begin from 10th October 2017 for month of July and 18th October 2017 for Month of August;

9.2 Refunds of IGST and Input tax for export to SEZ shall begin from 18th October 2017;

9.3 Merchant exporter (Trader) can now procure goods from domestic supplier on payment of GST @ 0.1%;

9.4 Exporters holding Adv. Authorization/EPCG and EOU's can now import / procure goods from domestic supplier without payment of GST;

9.5 Mechanism in 9.3 and 9.4 above is for temporary relief. As permanent relief, "e-wallet" to be introduced w.e.f 1st April 2018 which shall be credited  for exporter with notional amount as advance refund for payment of GST. This advance shall be later adjusted with balance refund due after export;

9.6 To restore the lost incentive on sale of duty credit scrips, the GST on sale/purchase of these scrips is being reduced from 5% to 0%;

9.7 Specified banks and Public Sector Units (PSUs) are being allowed to import Gold without payment of IGST. This can then be supplied to exporters as per a scheme similar to Advance Authorization.

10. 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;

11. Sale by way of auction etc. of used vehicles, seized and confiscated goods, scrap etc by Central Government, State Government, Union Territory or a local authority, to any person, to be subjected to GST under reverse charge under section 9 (3) of the CGST Act;

12. Works contract services involving predominantly earth works (that is, constituting more than 75% of the value of the works contract) supplied to Central Government, State Governments, Local Authority, Governmental Authority or Government Entity shall be taxed at 5%;

13. Upfront amount paid for long-term lease of more than 30 yrs of industrial plot/ plot for infra development by  authority having more than 50% stake of CG/ SG/UT shall be exempted from GST;

14. Further GST rates have also been revised in respect of certain goods / services.

Finally 22nd meeting of GST Council has really given some breathing space to trade and industry people. 

Source: Press Release of department dated 06.10.2017 

Discussions to this article

[shailender kumar]

Exporter take Duty Drawback with ITC under GST

[Ashwarya Agarwal]

Yes, dept has issued new duty drawback rate which has 2 rates for each item. One is with cenvat and other is without cenvat.

[Avinash Gopalakrishnan]

when are they planning to bring the Notification on 9.3 Merchant exporter (Trader) can now procure goods from domestic supplier on payment of GST @ 0.1%, or can i just ask my supplier to bill me at 0.1% for the next supply

[Ashwarya Agarwal]

I am not sure about it but hopefully tomorrow i.e. 12.10.17.

[Avinash Gopalakrishnan]

Thank you for the prompt reply , Would it be possible that the notification would be on a retro basis i.e from the 6th Oct ,as if i were to buy it today i would be have to pay 18% , have a few shipments which have to leave by the weekend , i guess we can only hope

[Ashwarya Agarwal]

Sorry Sir, I am a tax practitioner, not department representative.

[Avinash Gopalakrishnan]

Considering the immediate response i wish you were though , can't say the same about the GSTN members to whom i have sent various tweets ,emails etc , thank you

[akanksha sehgal]

Has recommendation made in point no. been notified??

[akanksha sehgal]

I was talking point no. 3