E India CA

Professional Updates for Chartered Accountants

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Decision taken at the 17th Meeting of GST Council held on 18th June, 2017

  1. GST Council categorically decided to implement GST from 1st July. There will be a special launch of GST at Vigyan Bhawan, New Delhi on the mid-night of 30th June and 1st July ( as already shared by me few days back, now officially announced by FM). *Now it’s certain that roll out date of #GST won’t be postponed from 1st July* but necessary relaxation in rules will be given as and when required.
  1. *Relaxation in Return filing time-line for first 2 months:*

A summary return (single page) form in GSTR-3B will required to be filed on self-declaration basis for first 2 month i.e. July and August by 20th day of next month. I.e. for the month of July, a summary return needs to be filed by 20th August after paying appropriate taxes, and for the month of August, the same needs to filed by 20th September.

  1. GSTR-1 with invoice level details needs to be filed for the month of July by 5th September, and for the month of August by 20th September. GSTR-2 and GSTR-3 for these 2 months will be filed thereafter. It  means matching for 1st two months of July & August will take place only after 5th/20th September respectively.
  1. Relaxation in tax rate for hotels with tariff between 5000-7500:

Reduced tax rate of 18% will apply on the hotels with tariff between Rs. 5000 to Rs. 7500. Restaurants in these hotels will also be taxable at 18%. Earlier it was proposed to be taxed @28%.

  1. Tax rate on Lotteries:

State-run lotteries will be taxed at 12% State authorised (Private) lotteries will be taxed at 18%

  1. Negative List of Composition Scheme:

Only 3 products have been added in negative list of Composition Scheme, which means for following 3 products composition scheme will not be available.

  • Ice cream
  • Pan masala
  • Tobacco

 

  1. *E-way bill will be deferred and will be implemented later on once the rules for same will finalized*. Till that time, an alternate e-way bill will be introduced to allow the state with their current system. It means current system of way bill will continue till GST E-way bill is approved and implemented.
  1. IGST rate of 5% on Ship with full ITC will be applicable.
  1. GST Council also approved anti-profiteering rule.
  1. New Registration in GST will be commenced from 25th June.
  1. GST Council shall meet again on 30th June

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