GST-Updates

A. Changes in Composition Scheme

• Composition scheme limit to be increased to Rs 1.5 crore (can be extended to Rs 2 crore later).
• 1 % GST rate for manufacturers & traders
• Composition tax of 1% on turnover of taxable goods (turnover of exempted goods to be excluded)
• Those supplying goods and services (services not exceeding Rs 5 lakhs in total) eligible for compositions scheme
• Composition Returns, GSTR-4  due date extended to 24th December
• Composition dealers cannot make inter-state sales. Input tax benefit not allowed.

B. Relief in GSTR compliance

• All businesses to file GSTR-1 and GSTR-3B till March 2018.
• GSTR-2 and GSTR-3 filing dates for July 2017 to March 2018 will be worked out later by a Committee of Officers
• Turnover under Rs 1.5 Cr to file quarterly GSTR-1
• Turnover above Rs 1.5 Cr to file monthly GSTR-1
• All businesses to file GSTR-3B by 20th of next month till March 2018.

C. Extension of GSTR-1 filing Due Dates

For turnover upto Rs. 1.5 cr:

Period (Quarterly)	Due dates
July- Sept	31st Dec 2017
Oct- Dec	15th Feb 2018
Jan- Mar	30th April 2018

For turnover of more than Rs 1.5 cr:

Period	Dates
July to Oct	31st Dec 2017
Nov	10th Jan 2018
Dec	10th Feb 2018
Jan	10th Mar 2018
Feb	10th Apr 2018
March	10th May 2018

D. Relief for service providers

All service providers with turnover up to Rs 20 lakhs exempt from GST registration. Including those who supply inter-state or supply through e-commerce operator, such service providers do not have to register.

E. Challenges ahead for Restaurants

GST rate cut to 5% with no input tax credit.

F. Other taxpayer relief measures

• Late Fees reduced – For delayed filing of NIL returns,  late fee reduced from Rs 200 per day to Rs 20 per day.
• Late Fee credit – Late fees for GSTR-3B of July, Aug and Sept waived. Any late fees paid for these months will be credited back to Electronic Cash Ledger under ‘Tax’ and can be utilized to make GST payments.
• Manual filing of Advance Ruling application to be introduced
• 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 until 31st December 2017. Revision to be done only once.
• Timelines for the filing of GSTR-2 and GSTR-3 for July to March 2018 to be worked out by Committee of Officers. However, subsequent month filing of GSTR-1 will not be impacted.

G. Others GSTR filing extensions

Return	Revised Due Date	Old Due Date
GSTR-5 (for Non-Resident)	15th Dec 2017	Earlier of 20th August 2017 or 7 days from date of registration
GSTR-4 (for Composition Dealers)	24th Dec 2017	18th October 2017
GSTR-6 (for Input Service Distributor)	31st Dec 2017	13th August 2017
ITC-04 (for job work) for quarter of Jul-Sep	31st Dec 2017	25th October 2017
TRAN-1	31st Dec 2017	30th September 2017

H. GST Rate Changes

• 28% slab pruning cost to government= 20,000 crore
• 1 % composition  rate for manufacturers & traders
• Reduced from 28% to 18% W.e.f. 15th Nov 2017 – Shampoo, Perfume, tiles, watches
• Reduced from 28% to 12% – Wet grinders, tanks
• Reduced from 18% to 12% – Condensed milk, refined sugar, diabetic food
• Reduced from 12% to 5% – Desiccated coconut, idli dosa batter, coir products
• Reduced from 5% to Nil – Duar meal, khandsari sugar, dried vegetables
• Restaurants within hotels (room tariff <7,500- 5% without ITC
• Restaurants within hotels (room tariff >7,500 ) still 18% with ITC
• Outdoor catering 18% with ITC