SKP Group
SKP GST Update
17 October 2017
Notifications to enforce GST Council’s decision issued

In accordance with the recommendation of the GST Council in its 22nd meeting held on 6 October 2017, the Central Board of Excise and Customs (CBEC) has issued notifications to bring these decisions into force. 
  1. The threshold limit to opt for composition scheme has been increased (vide notification no. 46/2017 - Central Tax dated 13 October 2017)
    Category Revised limit Earlier Limit
    Special category states (Except Jammu and
    Kashmir and Uttarakhand)    		 INR 7.5 million INR 5 million
    Other states INR 10 million INR 7.5 million
  2. The CBEC has extended the due dates for the following:
    Notification Revised Due Date
    GSTR-4: Composition dealer 15 November 2017
    GSTR-5A: Online information and database access or retrieval services by a person located outside India made to non-taxable persons in India 20 November 2017
    GSTR-6: Input service distributor 15 November 2017
    GST ITC-01: Declaration for claim of input tax credit 31 October 2017
  3. Other notifications issued on 13 October are:
    Particulars Notification no.
    Service providers with turnover up to INR 2 million (INR 1 million for special category) are exempt from obtaining registration even on inter-state supplies Notification No. 10/2017 – Integrated Tax
    No tax on reverse charge mechanism for supplies received from unregistered dealer to registered dealers till 31 March 2018 38/2017 - Central Tax (Rate)
    32/2017 - Integrated Tax (Rate)
    GST on transport of passengers by any motor vehicle/renting of motor vehicle shall be 5% when no input tax credit is availed by the supplier and 12% when input tax credit is availed by supplier 31/2017 - Central Tax (Rate), 39/2017 - Integrated Tax (Rate),
    31/2017 - Union Territory tax (rate)
    Sale, supply or lease of vehicle purchased or leased prior to 1 July 2017 shall be taxed at 65% of applicable GST plus cess with effect from 1 July 2017 till 30 June 2020.
         		 37/2017 - Central Tax (Rate)
     
    38/2017 - Integrated Tax (Rate) 37/2017 - Union Territory tax(rate)
     
    06/2017 - Compensation Cess (Rate)
    GST on services provided for access to a road or a bridge on payment of annuity has been exempted 32/2017 - Central Tax (Rate)
    16/2017 - Union Territory Tax
    Services by Goods travel agency (GTA) to unregistered persons are exempt. The above exemption would not be granted to any casual taxable person, factory, society, co-operative, partnership firm or any other body 32/2017- Central Tax (Rate)
    No tax on advances received for outward supplies of goods for dealers having annual turnover of INR 15 million and who have not opted for composition scheme 40/2017 – Central Tax
    Reverse charge mechanism shall apply on sale/supply of used or seized vehicles or goods by state, central or union government authority to any registered person 36 /2017 - Central Tax (Rate)
    Nil rate of GST for duty credit scrips 35/2017 - Central Tax (Rate)
    The GST rates of various goods and services are rationalised   
 
Note - the Notifications issued on 13 October 2017 shall be effective form the date of notification unless otherwise specified.
 
Reference: http://www.cbec.gov.in/htdocs-cbec/gst/index
SKP's comments
  • The government continues to show its proactiveness by constantly reviewing GST provisions to address the pain points of the stakeholders.
  • The taxpayers should note that the decisions of the Council shall come into force only from the date of notification unless otherwise specified. Many other decisions, such as deferment of TDS/TCS provisions and levy of 0.1% GST on procurement by merchant exporters have not been notified.
  • Businesses should continue to track the rapid developments in the GST to make timely adjustments, plan their compliances and adopt tax positions.
SKP
Urmi Axis | 7th Floor | Famous Studio Lane | Dr. E. Moses Road | Mahalaxmi | Mumbai | India
+91 22 6730 9000 | skp.gst@skpgroup.com | www.skpgroup.com
 
India | USA | Canada | UAE
Member of Nexia International
LinkedIn
Twitter
Facebook
Google+
YouTube
DISCLAIMER
This update contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This update should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this update is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this update, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this update. 

SKP Business Consulting LLP is a member firm of the "Nexia International" network. Nexia International Limited does not deliver services in its own name or otherwise. Nexia International Limited and the member firms of the Nexia International network (including those members which trade under a name which includes the word NEXIA) are not part of a worldwide partnership. For the full Nexia International disclaimer, please visit www.skpgroup.com.

© 2017 . All rights reserved.