GST Council gives biggest package of tax concession

Source: The Hitavada      Date: 16 Nov 2017 10:02:30


Business Bureau,

Taking into account the demands made by traders as well as general public, GST Council has reduced tax rates. Over 200 common daily use items as well as product predominantly made by small and medium enterprises (SMEs) have been shifted to lower GST tax bracket from November 15, 2017.

From 28% to 18% GST bracket: 178 items of common use of wide range products used in every household including furniture, electrical goods, sanitaryware, suit case, wall paper, plywood, stationary articles, watch, play instruments, detergents, shampoos, hair cream, hair dye, make-up products, after shave, lazers and blades, deodorants, marbles and granites, mattresses, coffee chocolate, leather clothing, cutlery.

From 18% to 12% GST bracket: 13 items including condensed milk, refined sugar, pasta curry paste, diabetic food, medical oxygen, printing inks, handbags, hats, spectacles frames and bamboo cane furniture.
From 18% to 5% GST bracket: Puffed rice chikki, flour of potatoes, chutney powder, sulphur recovered in refining crude and fly ash.

From 12% to 5% GST bracket: Eight items including idli dosa batter, finished leather, coir, fishing net, worm clothing, fly ash bricks and disiccated coconut.
From 5% to Nil: Six items including guar meal, hopcone, certain dried vegetable, unworked coconut shell and fish.
Eating out food in restaurant and ordering it much more affordable. Food service or technology in all stand-alone restaurants, including restaurants in hotel premises having room tariff less than Rs 7,500 per unit per day attract 5% GST without input tax credit (ITC). Restaurants in hotel premises having room tariff of Rs 7,500 and above per unit per day and (even for a single room) and outdoor catering attract 18% GST with full ITC.

Government had also given relief in compliance and made processes easier and simpler. All taxpayers to file simple return in form of GSTR-3B with payment upto 20th of succeeding month for a period till March 2018. All taxpayers need to submit GSTR-1 only till March 2018 without required filing of GSTR-2 and GSTR-3. The time limit for filing of GSTR-2 and GSTR-3 will be modified later on.

Late fee for late filed GSTR-3B of July, August and September 2017 period waved. In case already paid it will directly credit to electronic cash ledger. For October 2017 onwards, period per day late fees will be Rs 20 for Nil and Rs 50 for tax paid GSTR-3B returns instead of previous Rs 200. Due dates for furnishing the information of input credit claim in form of TRAN-1 extended till December 31, 2017 alongwith one time option to revise it.

Small taxpayers may file their GSTR-4 return of July-September period till December 24, 2017. Enhancement of annual turnover eligibility for Composition Scheme upto Rs 2 crore with uniform Composition tax rate of 1% for both manufacturer and traders is under consideration.
Benefit to service providers: All service providers having aggregate turnover below Rs 20 lakh whether supplying services intra-state, inter-state or through e-commerce operator, exempted from obtaining GST registration.