GPWR GST: THE BEGINING

GST 17th Council Meeting –By CA Gaurav Agarwal Page 1

GST 17TH COUNCIL MEETING

BY CA gaurav agarwal

9680308787

Previous Council Meeting (16th) - June 11, 2017 (New Delhi)

Today’s Council Meeting (17th) –June 18, 2017 (Delhi)

Upcoming Council Meeting (18th) – June 30,2017

Agenda of meeting: - The Union Minister for Finance, Shri Arun Jaitley will chair the

17th Meeting of the GST Council scheduled to be held on June 18,2017 at Vigyan

Bhavan, New Delhi .Main agenda items of the 17th GST Council Meeting include:

1. Confirmation of the minutes of the 16th GST Council meeting held on June

11,2017

2. Approval of draft GST Rules and related Forms for:-

a) Advance Ruling,

b) Appeals and Revision,

c) Assessment and Audit,

d) E-Way Bill &

e) Anti-Profiteering, and

3. Adjustment of GST Rates on certain items among others

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GST 17th Council Meeting –By CA Gaurav Agarwal Page 2

Finance Minister Arun Jaitley on Sunday chaired the 17th meeting of

the GST Council which has decided:

Increase in turnover limit for composition scheme for remaining

9 states

Rate adjustment as received from industry representative

Finalising remaining draft rules

Formation of Anti profiteering authority

Some relaxation in filing GST return for July & August Return

Start date for new registration in GST

Notified some goods of which manufacturer is ineligible to take

composition scheme as per Sec 10 and composition rules

GPWR GST: THE BEGINING

GST 17th Council Meeting –By CA Gaurav Agarwal Page 3

Implementation of GST from July 01 2017: The GST Council categorically decided to implement the indirect tax

regime from July 01, 2017. There would be a special GST launch at

Delhi’s Vigyan Bhawan on the intervening night of June 30 and July 1.

Relaxation in filing of returns:

While sticking to the rollout date of July 1 for GST, Finance Minister Arun Jaitley announced relaxations for return filing by trade and industry for the first two months. “This will give the GST Suvidha Providers and assessees sufficient time to prepare their systems,” he said.

Registered Tax payer would need to file a single-page summary

return in GSTR-3B form on a self-declaration basis for the first two

months – July and August – by the 20th day of the following month.

This implies, for the month of July, a summary return will need to be

filed by August 20, after paying appropriate taxes; for August it will

need to be filed by September 20.

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Filing of invoices: GSTR-1 with invoice level details for the month of July will need to be

filed by September 5. For the month of August, the deadline will be

September 20. GSTR-2 and GSTR-3 for these two months will be filed

thereafter.

This implies tallying for GSTR-2 and GSTR-3 for the first two months –

July and August – will take place only after September 5 and 20,

respectively.

No clear call on GST E-way bill: The GST electronic waybill would be deferred. It would be

implemented later, after rules for it are finalised. Till such a time, an

alternative e-way bill would be introduced to allow continuance of

the current system.

This implies the current system of way bill would continue until

the GST E-way bill has been approved and implemented.

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Finalisation of Draft Rules and formation of anti profiteering authority:

The Council also decided to defer the implementation of the e-way bill for some time due to a lack of consensus but plans to give full shape to the anti-profiteering authority (APA) by the month-end.

The Council also approved rules relating to advance ruling, appeals and revision, assessment and anti-profiteering.

“We want to keep it as a deterrent and hope we are not compelled to use the APA,” the Finance Minister said.

Revenue Secretary Hasmukh Adhia said the rules will be notified by Monday. According to the mechanism, a Standing Committee of officers will review the complaints which will then be investigated by the Directorate General of Safeguards. If found genuine, it will forward the complaint to the APA, which can ask the company to roll-back the price and also refund an amount equal to what it has made through the hike in prices.

“It will have a sunset clause of two years,” Adhia said.

New registration in GST: For the upcoming GST regime, new registrations would begin from

June 25.

Textiles:

The GST Council has made it clear that there would be no further

relief to the country’s textiles sector before the rollout of GST.

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GST 17th Council Meeting –By CA Gaurav Agarwal Page 6

Turnover limit for Composition Dealer

SN States Turnover Limit

1 1) Arunachal Pradesh, 2) Assam, 3) Manipur, 4) Meghalaya, 5) Mizoram, 6) Nagaland, 7) Sikkim, 8) Tripura, and 9) Himachal Pradesh.

50 Lacs

2 Jammu & Kashmir Will be decided

3 Rest of India including Uttrakhand 75 Lacs

Manufacturer of notified goods not eligible for composition

scheme

SN Description of Goods

1 Ice cream and other edible ice, whether or not containing cocoa

2 Pan masala

3 Tobacco and manufactured tobacco substitutes

List for rate on additional supply of Goods

Supply of Goods GST Rate

Dried Singhada and Makhana 5 %

List for rate on additional supply of Service (Lottery)

Supply of Services GST Rate

Lottery run by State Governments 12% of face value of lottery ticket

Lottery authorized by State Governments 28% of face value of lottery ticket

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Revised GST Rate for Certain Services

SN Supply of Services GST Rate

5 Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India

5% with ITC of input services and ITC of GST paid on ships, vessels including bulk carriers and tankers

24 Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff is Rs 2500/ and above but less than Rs 7500/- per room per day

18% with Full ITC

31 Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel

18% with Full ITC

32 Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per room per day

28% with Full ITC

What in Next council meeting? Function for official launch of GST in Delhi on the midnight of June 30

and July 01

Discussion on any other issue if necessary for proper implementation of

GST

[Views & Opinions Expressed are strictly personal]

Countdown starts for GPWR GST –The Conclusion