Key decesions taken in 23rd GST council meeting

Changes in Return filling process:

The GST council has simplified return filling process till March, 2018. Due dates for filling GST returns are as under:

·         All taxpayers would be required to file GSTR 3B along with payment of tax by 20th of the succeeding month till           March, 2018.

·         Taxpayers with annual Aggregate Turnover exceeding INR 1.5 crores are required to file GSTR 1 on monthly basis in the following manner:

Tax period Due date for filing GST Return in Form 1
July to October 2017 31st December, 2017
November, 2017 10th January, 2018
December, 2017 10th February, 2018
January, 2018 10th March, 2018
February, 2018 10th April, 2018
March, 2018 10th May, 2018

 Taxpayers with annual Aggregate Turnover up to INR 1.5 crores are required to file GSTR-1 on quarterly basis in the following manner:

Period Due date of filling GST Return in Form 1
July to September, 2017 31st December, 2017
October to December, 2017 15th February, 2018
January to March, 2018 30th April, 2018

Council has deferred filling of GSTR-2 & GSTR-3 for the period July, 2017 to 31st March, 2018. The appropriate clarifications and process alongwith applicable dates for filing of GSTR-2 & GSTR-3 would be communicated by Government in due course.

   Changes in Late Fee amount payable under GST law

•   Council has waived-off late fee charges paid for the month of July, August & September for late filling of GSTR-3B and same would be re-credited to the Assessee’s Electronic Cash Ledger underTax head instead of Feehead. However, assessee can adjust such amount towards future tax liabilities.

•   From October, 2017 onwards, late fee charges for the taxpayer having tax liability for the particular month of ‘NIL’, would be INR 20/- per day (Rs 10 per day each under CGST & SGST Act) instead of Rs 200/- per day (Rs. 100/- per day each under CGST & SGST Act).

 Extension of Due Dates - Council has extended due date for filling of various GST returns as under:

GST ITC-04 for the quarter July-September,2017 for Job-work Details
25th October, 2017 31st December, 2017
GSTR-4 for the quarter of July-September,2017 for Composition Dealers
18th October, 2017 24th December, 2017
GSTR-5 for the month of July,2017 for Non-Resident Foreign Taxpayers
20th August, 2017 or 7 days from the last registration, whichever is earlier
11th December, 2017

GSTR-5 A for the month of July,2017 (Online Information Database Access Retrieval Services)

20th August, 2017 15th December, 2017
GSTR-6 for the month of July,2017 (ISD Return) 13th August, 2017 31st December, 2017

Amendments in Tax Rates of Goods & Services:

 Tax rate change in case of numerous goods and services has been proposed by GST Council. Some of the major and common goods & services are    highlighted herein below:


GST Council in its meeting has substantially pruned rate of tax on 224 items taxable at the rate of 28/18/12% to 18/12/5% respectively. Some of the items along with amended GST rates are as under:


Product List Old Rate of GST New Rate of GST
Furniture, sanitary items, primary cells and batteries, ceramic tiles of all kinds, Wrist watches & clocks, Office or door equipment, escalators, fire extinguishers, bull dozers, excavators and road rollers, earth moving and levelling machinery, perfumes & toilet waters, Malt extract and food preprations of flour, groats, meal, starch, etc.
28% 18%
Pasta, printing Ink, hand and shopping bags of jute and cotton, parts of specified agricultural, horicultural, forestry, harvesting or threshing machinery, furniture wholly made of bamboo or cane, etc.
18% 12%
Chutney Powder, flour of Potatoes put up in unit container bearing a brand name,etc.
18% 5%
Finished leather, worn clothing and Narrow woven fabric including cotton newar(with no refund of unutilised ITC 12% 5%
Unworked coconut shell, khandsari Sugar, fish frozen or dried (not put up in unit container bearing brand name)
5% NIL

(For complete list of goods for which tax rates have been changed, please refer the attached document)


Services Old Rate New Rate Condition
Standalone Restaurant Services 18% 5% ITC not eligible
Restaurants in Hotel Premises having room tariff upto INR. 7500/- 18% 5% ITC not eligible
Restaurants in Hotel Premises having room tariff of INR 7500/- and above including outdoor catering services 18% 18% NA

Job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration vide Notification 8/2017–Integrated Tax dated 14-09-2017, would not be taxable at the rate of 5% with full ITC.

GST rate on permanent transfer of Intellectual property with respect to goods or services has been clearly divided into two broad categories. Permanent transfer of Intellectual Property in respect of Information Technology software would attract GST at the rate of 18 % whereas all other permanent transfer of Intellectual property would attract 12% rate of tax.