Key Takeaways from the 17th meeting of GST Council held on June 18, 2017

Keeping the deadline of July 1, 2017 as target for GST rollout, GST Council deliberated upon certain issues in its 17th meeting held on June 18, 2017 at Delhi.

1. The GST Council has affirmed the rollout of GST w.e.f 1st July, 2017. The council will organize a special launch Programme to be held in the capital state from midnight of June 30 & July 1.

2. In order to facilitate the public to be GST compliant and reduce hassles in the initial stage of GST implementation, Government has provided relaxation in the time period for filing of returns.

The tax would be payable based on simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of succeeding month.

3. Invoice-wise details in regular GSTR-1 would have to be filed for the month of July and August as follows –

(i) For July – GSTR-1 from September 1st to 5th, while GSTR-2 (auto-populated from GSTR-1) from September 6th to 10th, 2017.
(ii) For August – GSTR-1 from September 16th to 20th, while GSTR-2 (auto-populated from GSTR-1) from September 21st to 25th,2017

4. Facility for uploading of outward supplies from July 2017 will be available from July 15. No late fees and penalty would be levied for the interim period.

5. Tax rates for hotel with tariff between INR 5,000 – 7,500 has been reduced to 18%. The GST rate of 28% shall apply on hotels with tariff above INR 7,500.

6. Restaurants in such hotels will have to pay tax at the rate of 18 percent.

7. Lotteries will now be taxable at two rates. State run lotteries will be taxed at the rate of 12% and private lotteries at the rate of 28%.

8. GST Council has approved 5 set of rules which is Anti-profiteering, Advance Ruling, Appeal & Revision, Assessment and Funds Settlement Rules.

9. E-way bill will be deferred and will be implemented later on once the rules for the same will finalize. Till that time an alternative e-way bill will be introduced to allow the state with their current system.

10.  The rate of IGST applicable on ship shall be 5% with the availability of full Input Tax Credit.

11.  The following three products have been added to negative list of composition scheme and for them composition scheme will not be available:

a. Tobacco
b. Ice Cream
c. Pan Masala

12.  New registrations in GST will commence from June 25, 2017.

13.  The next GST Council has scheduled its meeting to be held on June 30, 2017.

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