GST Updates: Outcome of GST Council Meeting dated 06th October, 2017

Outcome of GST Council Meeting held on 06th October, 2017

GST Council meeting was held on 06th October, 2017 to discuss various matters. Following are the outcome of this meeting.

1. Limit for turnover in compensation scheme raised from Rs 75 Lakh to Rs 1 Crore
2. 1% tax applicable on traders under composition scheme
3. 2% tax will be applicable on manufacturing firms under composition scheme
4. 5% tax applicable on restaurants under composition scheme
5. E-way Bill provisions to be deferred till April, 2018
6. Reverse Charge in case of supplying services or goods by unregistered dealer to registered dealer not to be applicable till 31st March, 2018
7. Dealer with Turnover upto Rs 1.5 Cr (non-composition scheme) required to be file quarterly returns.
8. GST Rate on khakra and unbranded namkeen has been reduced from 12 percent to 5 percent
9. GST Rate on zari work, unbranded ayurveda medicine has been reduced from 12 to 5 percent
10. GST Rate on man-made yarn reduced to 12% from 18%
11. Every exporter will now get an e-wallet. In the e-wallet, there would be a notional amount for credit. The refund they will eventually get will be offset from that amount. The e-wallet will be introduced from April next year.
12. Tax refunds to exports will start from October 10 
13.  GST rate on many job work items reduced from 12 percent to 5 percent. 
14. GST rate on some stationery items, diesel engine parts also reduced to 18percent from the earlier 28 percent.
15. small businesses will also have to file monthly returns for three months – July, August and September – and the switchover to quarterly filing will happen from the cycle starting 1st October.
16. Any person providing exempted service are eligible for compensation scheme.
17. petroleum products remain outside the ambit of GST
18. It has been decided to exempt those service providers whose annual turnover is less than Rs 20 Lacs from obtaining registration even if they are making inter-State taxable supplies of services.
19. registration and operationalization of TDS/TCS provisions shall be postponed till 31.03.2018.
20. Services provided by a Goods Transport Agencies (GTA) to an unregistered person shall be exempted from GST.
21. Taxpayers having annual aggregate turnover uotpo Rs 1.5 Cr shall not be requried to pay GST at the time of receipt of advance on the account of supply of goods.
22. Due Date for filing Form GSTR-4 under composition scheme for quarter July-Sep 2017 shall be extended to 15th November, 2017
23. Due Date for filing Form GSTR-6 by input service distributor for quarter July-Sep 2017 shall be extended to 15th November, 2017

Keep watching the post for more updates on this topic. You can access press release on above at this link.