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22nd GST Council Meeting (2017 ,6th Oct)

22nd GST Council meeting held in Delhi on 6th Oct, 2017. 90 to 94% tax amount is received from large tax payers. Small tax payers were concerned about compliance. So, GST Council has taken Special attention to the SMEs (Small and Medium Enterprises) and Exports under this meeting. Compliance of SMEs has been reduces. Considering the small tax payers, the limit of composition scheme has been increased. Exporter’s refund has been arranged. Exporter can now collect taxes to remove his own blocked funding. The rate of some goods and services has been changed. In the provision of GST, there has been a change to the E-Way Bill, RCM and Returns. All the provisions made in the meeting are as follows.

Important Announcement: 


  1. The limit for turnover in composition scheme raised from Rs 75 Lakhs to Rs 1 crore.  
  2. Any person providing exempted service is eligible for compensation scheme.  
  3. GST Council to allow quarterly filing of returns for businesses with annual turnover up to Rs 1.5 crore. (Non Composition Assesses)   
  4. Service providers providing inter - state taxable supply up to 20 Lakhs (Special category state except Jammu and Kashmir up to 10 Lakhs) will be exempted from GST.  
  5. Postponement of RCM (Reverse Charge Mechanism) till 31st March, 2018.  
  6. Relief for jewellers as no need to furnish PAN card on jewellery purchase of more than Rs 50,000. (below Rs. 2,00,000)  
  7. GST Council decides to roll-out e-way billing from April 2018.  
  8. Refund to Exporters  a. For Jul 2017 – Will Start from 10th Oct 2017. b. For Aug 2017 – Will Start from 18th Oct 2017.  
  9. E-Wallet Facilities to Exporters and Small Trader from April 2018.  
  10. The council allowed merchant exporter to pay 0.1% GST on the goods they source, which they can claim as input tax credit, to address the issue of blockage of funds.  
  11. Pre GST vehicle lease would be able to avail abatement of 35%, implying that the present GST rate will be applicable only on 65% of the lease value. This facility would be available even when the vehicle is sold.


General Point: 

  • Rate Under Composition Scheme  a. Trader 1%  b. Manufacturer 2% and  c. Restaurants 5%.  
  • Return for Composition Assesses – Quarterly return GSTR 4 and Annual Return Total 5 Returns.  
  • Returns for Non Composition Assesses up to 1.5 Crore – Quarterly return GSTR 1, GSTR 2, GSTR 3, GSTR 3B and Annual Return.  
  • Petroleum products remain outside the ambit of GST  
  • Revenue secretary Hasmukh Adhia says that 90 percent of the taxpayers will file quarterly returns.   
  • GST rate on handicrafts may be cut from 12% to 5%.  
  • A few daily-use items to get cheaper. Some daily use items removed from 28 percent tax slab.  
  • In principle, GST Council has revised the rate of air-conditioned restaurants to 12 percent. A group of ministers has been formed to devise the mechanism. The GoM will submit its report in 10 days.  





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