The 21st GST Council meeting held at Hyderabad on 9th September 2017, discussed some of the crucial issues such as difficulties faced by the businesses in filing the return, increase on Cess on cars, proposals received from various trade associations to lower the amount of GST on certain products then on. To facilitate the companies in meeting the compliance standards, the subsequent are key changes recommended by the GST Council Meeting.

GST return due dates are extended

In view of the difficulties faced by the companies in filing returns with the GST Portal, the extension of the maturity to file the return was one among the most anticipated outcomes of the GST council. Understanding the plight of the companies in filing the GST Return, the due dates are extended and therefore the following are the revised dates:

Return Return Period Revised Due Date
GSTR-1 July,2017 10th October,2017
GSTR-2 July 31st October,2017
GSTR-3 July 10th November,2017

The above dates are applicable just for July, 2017. The due dates for August, 2017 and subsequent months will be notified at a later date. For registered people with an aggregate turnover of more than Rs. 100 crores, the maturity to file GSTR-1 are 3rdOctober 2017 and GSTR-2 and GSTR-3, will filed as per the above mentioned due dates.

Return filing for composition dealer

The businesses who have opted for composition scheme are required to file the quarterly return in GSTR-4 by 18th of the succeeding month. There is no change in the due date to file GSTR-5 and the due date to file GSTR-6 for the quarter of July September, 2018 continues to remain at 18th October, 2018.

However, filing of GSTR-4A (Auto-populated details of inward supplies) is not required for the quarter of July – September, 2017 and thereby, the details of inward supplies including supplies on which income tax has to be paid on reverse charge in Table 3 of Form GSTR-3 is not required to be filed.

GSTR-3B filing

The interim return was allowed just for the months of July and August, 2017. Now, the interim return in GSTR-3B will still be filed for the months of August to December, 2017. The due date to file form GSTR-3 will remain unchanged i.e. 20th of the subsequent month

GST TRAN-1 due date

The companies claiming average credit were required to file the GST TRAN-2 within 3 months from the date of implementation of GST, which is by 29th September, 2017. Now, the maturity to file GST TRAN-1 is extended till 31st October, 2017. Also, revision of details in GST TRAN-1 wasn’t allowed after submitting the shape . Now, the companies are allowed to revise the main points after submitting the details. It is important to notice and remember that the revision is allowed just one occasion .

Extended date to opt for composition scheme.

The businesses (whether migrated or new registrant), who couldn’t choose composition scheme by the deadline of 16th August, 2017, has given the choice to avail composition scheme till 30th September, 2017 and such registered people shall be consent to avail the benefit of the composition scheme with effect from 1st November, 2017

Registration of companies susceptible to deduct TDS and picked up TCS

The registration for every companies is liable to deduct tax at source (TDS) and collect tax at source (TCS) will commence from 19th September 2017. However, the go back which TDS and TCS are going to be deducted or collected are going to be notified by the Council later.

Specific exemptions for obtaining mandatory registrations for creating inter-state outward supplies

Presently, anyone making inter-state taxable supplies needs to be register mandatorily and therefore the threshold exemption of Rs. 20 lakhs (Rs. 10 lakhs in special category states except J & K) isn’t applicable. It has been decided to permit an exemption from registration to persons making inter-state taxable supplies within the specific cases as listed below:

  • Inter-State outward supply of articraft goods up to an aggregate turnover of Rs. 20,00,000. However, to avail the above benefit, you need to have a Permanent Account Number (PAN) and the goods are required to be moved under the cover of an e-way bill, irrespective of the value of the consignment.
  • Job workers who are making inter-State taxable supplies of job work service to a registered person as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment.

However, this exemption won’t be available to paperwork in reference to jewellery, goldsmiths and silversmiths covered under Chapter 71 (Diamonds, Precious stones, Synthetic or reconstructed precious or semi-precious stones etc.) which don’t require an e-way bill.

Increase in compensation cess on cars

The Goods & Service Tax Council has increased the effective taxes (rates and cesses) on certain division of automobiles. The following table gives the quantum of increase in cess:

Segment Today’s Compensation Cess Rates Updated Compensation Cess Rates Increased Rate of Cess
Small Cars
(length < 5 m ; Petrol < 1300 cc)
2% No change 0%
Small Cars
(length < 5 m ; Diesel < 1400 cc)
4% No change 0%
Mid Segment Cars
(engine < 1500 cc)
15% 17% 2%
Large Cars
(engine > 1500 cc)
15% 20% 5%
Sports Utility Vehicles
(length > 5 m ; engine > 1600 cc; ground clearance > 180 mm)
16% 23% 8%
Motor vehicles for transport of less than thirteen persons, including the driver force
(falling under sub-headings 8703 10, 8704 20, 8706 30 or 8708 90)
14% No change 0%
Hybrid Mid Segment Cars
(engine < 1500 cc)
15% No change 0%
Hybrid Large Cars (engine > 1400 cc) 14% No change 0%
Hybrid Sports Utility Vehicles
(length > 5 m ; engine > 1400 cc; ground clearance > 180 mm)
14% No change 0%

GST rates revised for certain goods and services

Tax rate for about 40 items are lowered and these include dried tamarind, roasted gram, custard powder, idli & dosa batter, plastic raincoats, rubber bands then on. To download the entire list of products and services on which the GST rates are revised

Credits: Tally Solutions

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