Recommendations Made by the GST Council

a couple of months ago

The 21st GST Council meeting held at Hyderabad on 9th September 2017, discussed some of the crucial issues such as difficulties faced by the businesses in filing the return, increase on Cess on cars, proposals received from various trade associations to lower the rate of GST on certain products and so on. To facilitate the businesses in meeting the compliance standards, the following are key changes recommended by the GST Council Meeting.

GST return due dates are extended

In view of the difficulties faced by the businesses in filing returns in the GST Portal, the extension of the due date to file the return was one of the most anticipated outcomes of the GST Council. Understanding the plight of the businesses in filing the GST Return, the due dates are extended and the following are the revised dates:

Return Period Revised Due Date
GSTR-1 July 2017 10th October 2017
GSTR-2 July 31st October 2017
GSTR-3 July 10th November 2017

The above dates are applicable only for July 2017. The due dates for August 2017 and subsequent months will be notified at a later date. For registered persons with an aggregate turnover of more than Rs. 100 crores, the due date to file GSTR-1 will be 3rdOctober 2017 and GSTR-2 and GSTR-3 will be filed as per the above mentioned due dates.

Return filing for composition dealer

The businesses who have opted for composition scheme are required to file the quarterly return in GSTR-4 by 18th of the succeeding month. There is no change in the due date to file GSTR-4 and the due date to file GSTR-4 for the quarter of July  September 2017 continues to remain at 18th October 2017.

However, a filing of GSTR-4A (Auto-populated details of inward supplies) is not required for the quarter of July – September 2017 and thereby, the details of inward supplies including supplies on which tax has to be paid on a reverse charge in Table 4 of Form GSTR-4  is not required to be filed.

GSTR-3B filing

The interim return was allowed only for the months of July and August 2017. Now, the interim return in GSTR-3B will continue to be filed for the months of August to December 2017. The due date to file form GSTR-3 will remain unchanged i.e. 20th of the subsequent month.

GST TRAN-1 due date

The businesses claiming transitional credit were required to file the GST TRAN-1 within 90 days from the date of implementation of GST, which is by 28th September 2017. Now, the due date to file GST TRAN-1 is extended till 31st October 2017. Also, revision of details in GST TRAN-1 was not allowed after submitting the form. Now, the businesses will be allowed to revise the details after submitting the details. It is important to note and remember that the revision is allowed only once.

Extended date to opt for composition scheme.

The businesses (whether migrated or new registrant), who could not opt for composition scheme by the deadline of 16th August 2017, will be given the option to avail composition scheme till 30th September 2017 and such registered persons shall be permitted to avail the benefit of the  composition scheme with effect from 1st October 2017

Registration of businesses liable to deduct TDS and collected TCS

The registration for business liable to deduct tax at source (TDS) and collect tax at source (TCS) will commence from 18th September 2017. However, the date from which TDS and TCS will be deducted or collected will be notified by the Council later.

Specific exemptions for obtaining mandatory registrations for making inter-state outward supplies

Presently, any person making inter-state taxable supplies has to register mandatorily and the threshold exemption of Rs. 20 lakhs (Rs. 10 lakhs in special category states except J & K) is not applicable. It has been decided to allow an exemption from registration to persons making inter-state taxable supplies in the specific cases as listed below:

  • Inter-State outward supply of handicraft goods up to an aggregate turnover of Rs. 20 lakhs. However, to avail the above benefits, you need to have a Permanent Account Number (PAN) and the goods are required to be moved under the cover of an e-way bill, irrespective of the value of the consignment.
  • Job workers who are making inter-State taxable supplies of job work service to a registered person as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment.
    However, this exemption will not be available to job work in relation to jewelry, goldsmiths and silversmiths covered under Chapter 71 (Diamonds, Precious stones, Synthetic or reconstructed precious or semi-precious stones etc.) which do not require an e-way bill.

Increase in compensation cess on cars

The GST Council increased the effective taxes (rates and cesses) on certain categories of automobiles. The following table gives the quantum of increase in cess:

Segment Present Compensation Cess Rates Revised  Compensation Cess Rates Increased Rate of Cess
Small Cars
(length < 4 m ; Petrol < 1200 cc)
1% No change 0%
Small Cars
(length < 4 m ; Diesel < 1500 cc)
3% No change 0%
Mid Segment Cars
(engine < 1500 cc)
15% 17% 2%
Large Cars
(engine > 1500 cc)
15% 20% 5%
Sports Utility Vehicles
(length > 4m ; engine > 1500 cc; ground clearance > 170 mm)
15% 22% 7%
Motor vehicles for transport of not more than thirteen persons, including the driver
(falling under sub-headings 8702 10, 8702 20, 8702 30 or 8702 90)
15% No change 0%
Hybrid Mid Segment Cars
(engine < 1500 cc)
15% No change 0%
Hybrid Large Cars (engine > 1500 cc) 15% No change 0%
Hybrid Sports Utility Vehicles
(length > 4m ; engine > 1500 cc; ground clearance > 170 mm)
15% No change 0%

GST rates revised for certain goods and services

The tax rate for about 40 items have been lowered and these include dried tamarind, roasted gram, custard powder, idli & dosa batter, plastic raincoats, rubber bands and so on.  To download the complete list of goods and services on which the GST rates are revised, click

Revised GST rates on goods
Revised GST rates on services

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