Decisions at GST Council's Meeting on the 18th of January, 2018
The GST Council held its 25th meeting at Vigyan Bhawan, New Delhi and deliberated on various problems and challenges in respect of GST. The agenda of simplification of returns was taken up with presentations being made by Nandan Nilekani from Infosys on the subject. However, no clear concensus emerged today. The decision was deferred to the next meeting which is proposed to happen in the next 10 days. Some of the key highlights of the meetings are as below.
1. Process for simplification of return was reviewed. GST Council proposed to meet again on the January 28, 2018 to decide. The following process suggested.
- Form GSTR 3B to be continued. Uploading of invoices in the form of GSTR 1 to continue. Mismatches in claim to be handled at assessment level.
2. Declining GST Collections were reviewed and discussed. Ewaybill as an anti-evasion measure to be implemented. Hence, trial of Eway bill to continue till Jan 31, 2018. Interstate ewaybill to become mandatory from February 1, 2018. Other such measures to be considered.
3. Definition of handicraft items reviewed. Fitment committee to review the rates.
4. Rates and classifications for 29 Goods and 53 categories for services were reviewed. Rate list to be shared shortly. New rates to come into force from 25th of January, 2018. Expected that rate of used cars will be reduced.
5. Review of composition scheme was made given the declining revenues of the Govt. Collection from Composition scheme under Quarter 1 is only Rs. 307 Crores. Changes in composition scheme to be proposed in the next GST Council meeting. Reverse charge on purchases from unregistered suppliers to be applicable on composition suppliers.
6. Late fee for GSTR-1, GSTR-5, GSTR-5A reduced to Rs. 50 per day and Rs. 20 per day for nil filers. Late fee for GSTR-6 reduced to Rs. 50 per day.
7. Suppliers who had obtained voluntary registrations can apply for cancellation even before expiry of one year from date of regn. Duedate for cancellation of migrated registrations extended till March 31, 2018.
8. Modifications in Ewaybill rules proposed and will be notified shortly.
9. Itemwise list of change of tax rate is as per links below.
For Goods - http://www.pib.nic.in/PressReleaseIframePage.aspx?PRID=1517141
For Services - http://www.pib.nic.in/PressReleaseIframePage.aspx?PRID=1517139