Changes in the GST Taxation System – with effect from 15 November 2017

Anju Rachel Thomas

, GST

Composition Scheme Changes

  • GST rate at 1% for manufacturers and traders
  • Composition scheme limit to be extended to ₹1.5 crore
  • Composition tax of 1% on turnover of taxable goods
  • Interstate sales are not permissible for composition dealers. Input tax benefit not allowed.

GST Filing Extensions

GSTR form Previous Due Date Revised Due Date
GSTR-5 (for Non-Residents) Before 20th August 2017 or & days from date of registration 15th December 2017
GSTR-4 (for Composition Dealers) 18th October 2017 24th December 2017
GSTR-6 (for Input Service Distributors) 13th August 2017 31st December 2017
ITC-04 (for the quarter of July-September) 25th October 2017 31st December 2017
TRAN-1 30th September 2017 31st December 2017

Taxpayer Relief Measures

  • Reduced Late Fee: For delay in the filing of NIL returns, late fee will be reduced from ₹200 per day to ₹20 per day.
  • Credit of Late Fee: For filing of GSTR-3B for the months of July, August and September, late fee has been waived. Any late fee paid will be credited back in Electronic Cash Ledger under ‘Tax’ and can be utilized for GST payments.
  • Manual filing for ‘Advance Ruling’ to be introduced
  • Export of services to Nepal and Bhutan are now exempt from GST. Input tax credit, if paid, can be claimed for refund.
  • Taxpayers with turnover less than ₹1 crore should file invoices every month, while those with turnover greater than ₹1 crore should file invoices every quarter.

Revised GST Rates for 178 Goods and Services

Goods/Services Present GST Rates Revised GST Rates
Guar meal, Khandsari sugar, Dried or frozen vegetables, Uranium ore concentrate, Hop cones, Unworked coconut shells 5% Nil
Desiccated coconut, Idli Dosa Batter, Coir products, Fly ash bricks, Worn clothes or rags, Fishing hooks, Leather or chamois after tanning or crusting, Nets of textile material, Restaurants (non-Ac) 12% 5%
Potato flour, Chutney powder, Sulphur recovered as by-product in refining of crude oil, Specified parts of aircraft, Scientific and technical apparatus, Computer software and accessories, Restaurants (AC) 18% 5%
Condensed milk, Diabetic foods, Refined sugar, Medicinal grade oxygen, Printing, writing and drawing inks, Pasta, Curry paste, Mayonnaise and salad dressings, Mixed seasoning, Parts of agricultural & sewing machinery, Bamboo and cane furniture, Frames and mountings for spectacles, Hand bags and shopping bags of cotton and jute 18% 12%
Wet grinders, Tanks and other armoured fighting vehicles 28% 12%
Chewing gum, Chocolates, Preparation of facial make-up, Preparations for oral hygiene, Toothpaste, Shaving and after-shave items, Shampoo, Deodorants, Detergents, Granite and marble, Handmade furniture, Electric switches, Watches, Sanitary ware, Cases, Cutlery, Refrigerators, Flavoured drinks, Water heaters, Fire extinguishers, Printers, Automatic goods vending machine, Transmission shafts and cranks, Fork-lift trucks, Self-propelled bulldozers, Batteries, Static converters, Vacuum cleaners, Cameras and projectors, Microscopes, Musical instruments 28% 18%

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