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GST Council gives more time to file returns, slashes late fee

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11 November 2017

The GST Council, at its meeting in Guwahati on Friday decided to further simplify the process of filing tax returns while allowing taxpayers with annual aggregate turnover up to Rs1.5 crore to file GSTR-1 on quarterly basis.

Accordingly, all taxpayers would file return in FORM GSTR-3B along with payment of tax by the 20th of the succeeding month till March 2018.

The Council also decided to reduce the amount of late fee payable from October 2017. The amount of late fee payable by a taxpayer whose tax liability for that month is 'nil' would be Rs20 per day (Rs10 per day each under CGST and SGST Acts) instead of Rs200 per day (Rs100 per day each under CGST and SGST Acts).

For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into two categories. Details of these two categories along with the last date of filing GSTR 1 are as follows:

Taxpayers with annual aggregate turnover up to Rs1.5 crore need to file GSTR-1 on a quarterly basis, ie, for July-September 2017 quarter by 31 December 2017; for October-December 2017 quarter by 15 February 2018 and for January-March 2018 quarter by 30 April 2018.

Taxpayers with annual aggregate turnover more than Rs1.5 crore need to file GSTR-1 on a monthly basis (except for the July-October period), ie, for the period ending October till 31 December 2017 and for the remaining months of the financial year on the 10 of the succeeding months.

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 officials. 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.

A large number of taxpayers were unable to file their returns in FORM GSTR-3B within due date for the months of July, August and September 2017, for which the late fee has been waived in all such cases. It has also been 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, ie, October 2017 onwards, the amount of late fee payable by a taxpayer whose tax liability for that month was 'nil' will be Rs20 per day (Rs10 per day each under CGST and SGST Acts) instead of Rs200 per day (Rs100 per day each under CGST and SGST Acts).

The Council also decided to introduce a facility for manual filing of application for advance ruling for the time being.

Further, exports of services to Nepal and Bhutan that have been exempted from GST, have now been made eligible for claiming input tax credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

The GST Council had earlier decided to exempt service providers whose annual aggregate turnover is less than Rs20 lakh (Rs10 lakh in special category states except J & K) from obtaining registration even if they are making inter-state taxable supplies of services.

It has now been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed Rs20 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 Rs20 lakh (Rs10 lakh in special category States except J & K).

In view of the late availability or unavailability of some forms on the common portal, it has been decided that the due dates for furnishing the following forms shall be extended as under:

  • GST ITC-04 for the quarter July-September 2017 from 25 October 2017 to 31 December 2017; 
  • GSTR-4 for the quarter July-September 2017 from 18 October to 24 December 2017;
  • GSTR-5 for July 2017 from the last date of registration whichever is earlier to 11 December 2017;
  • GSTR-5A for July 2017 from 20 August to 15 December 2017;
  • GSTR - 6 for July, 2017 from 13 August to 31 December;

* TRAN-1 from 30 October 2017 to 31 December 2017 (One-time option of revision also to be given till this date)

The Council said it would announce revised due dates for subsequent tax periods in due course.

In order to lessen the compliance burden on foreign diplomatic missions / UN organisations, the central government will issue a centralised UIN to every foreign diplomatic mission / UN organisation and all compliance for such agencies will be done by the central government in coordination with the ministry of external affairs.

The Council said relevant notifications for all the decisions will be issued shortly, so as to be effective from 15 November 2017.





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