23rd GST council meeting: Major relief to tax-payers

The recent recommendations made in the 23rd GST council meeting on Friday brought major relief to tax-payers, extending the deadline for tax-filing as well as reducing the penalty for late tax-filing.

All tax-payers will have to file the returns in FORM GSTR-3B along with payment of tax by 20th of the succeeding month till March, 2018.

For filing of details in FORM GSTR-1 till March 2018, smaller tax-payers would now be allowed to file return on a quarterly basis, while higher tax-payers will have to file it every month.

Smaller tax-payers include those with annual aggregate turnover upto Rs 1.5 crore. Following are the dates for filing tax for the corresponding period.

July to September - December 31, 2017

October to December- February 15, 2018

January to Mar - April 30, 2018

Higher tax-payers include those with annual aggregate turnover more than Rs 1.5 crore. Following are the dates for filing taxes for the corresponding period.

July to October- December 31, 2017

November - January 10, 2018

December - February 10, 2018

January - March 10, 2018

February - April 10, 2018

March- May 10, 2018

However, filing of GSTR-1 will continue for the entire period without requiring filing of GSTR-2 and GSTR-3 for the previous month/period.

Meanwhile, the time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March, 2018 would be worked out by a Committee of Officers.

Also, late fee for the tax-payers, who were unable to file their return in FORM GSTR-3B for the months of July, August and September, 2017 have been waived.

The Council has also decided that where such late fee was paid, it will be re-credited to their Electronic Cash Ledger under "Tax" head instead of "Fee" head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented.

For subsequent months, that is October 2017 onwards, the amount of late fee payable by a tax-payer whose tax liability for that month was 'NIL' will be Rs. 20per day (Rs. 10 per day each under CGST and SGST Acts) instead of Rs 200 per day (Rs 100 per day each under CGST & SGST Acts).

A facility for manual filing of application for advance ruling is being introduced for the time being.

Exports of services to Nepal and Bhutan, who are already exempted from the GST, will now be eligible for claiming Input Tax Credit (ITC) in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

The council also added further benefits for the service providers.

Adding to the changes made in the last meeting that exempted service providers with annual aggregate turnover less than Rs 20 lakh (Rs 10 lakh in special category states except Jammu and Kashmir) from obtaining registration, the GST has also decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration, provided their aggregate turnover does not exceed Rs 20 lakh.

As a result, all service providers, whether supplying intra-State, inter-State or through e-commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs 20 lakh (Rs 10 lakh in special category States except Jammu and Kashmir).