Impact Analysis – Changes based on 23rd GST Council Announcements

To give you a ready reckoner, here’s an exclusively crafted, Impact Analysis based on recent announcements made at 23rd GST Council Meeting.

Index

  • 1. Changes in Composition Scheme
  • 2. Changes in GSTR compliance
  • 3. Others GSTR filing dates
  • 4. Impact on small businesses
  • 5. Impact on Service Providers
  • 6. Impact on Exporters
  • 7. Impact on Composition Scheme
  • 8. Impact on RCM
  • 9. Impact on advance receipts
    • For businesses with turnover under Rs 1.5 cr

    Changes in Composition Scheme

  • Due date for GSTR-4 (Composition Scheme) extended to 24th December, 2017.
  • Composition scheme limit has been increased to Rs 1.5 crore.
  • 1% flat GST rate on turnover of taxable goods for Composition dealers (turnover of exempted goods to be excluded).
  • For manufacturers & traders, a 1% flat GST rate will apply.
  • Service providers not exceeding Rs. 5 lakhs in total sales, will now be eligible for compositions scheme.
  • Composition dealers can neither claim ITC nor make inter-state sales.

Changes in GSTR compliance

Till March 2018, all businesses will file GSTR-1 as per the rules below:

  • Turnover under Rs 1.5 Cr to file quarterly GSTR-1
  • Period (Quarterly) Due Dates
    July- Sept 31st Dec 2017
    Oct- Dec 15th Feb 2018
    Jan- Mar 30th April 2018
  • ** Notification No. 57/2017 – Central Tax **
  • Turnover above Rs 1.5 Cr to file monthly GSTR-1
  • Period (Monthly) Due Dates
    July to Oct 31st Dec 2017
    Nov 10th Jan 2018
    Dec 10th Feb 2018
    Jan 10th Mar 2018
    Feb 10th Apr 2018
    March 10th May 2018
  • ** Notification No. 58/2017 – Central Tax **
  • All businesses to also file GSTR-3B by 20th of next month till March 2018.
  • Filing dates of GSTR-2 and GSTR-3 for July 2017 to March 2018 will be announced later.

Others GSTR filing dates

Return Revised Due Date
GSTR-5 (Non Resident) – For July, August, September and October 2017 Notification No. 60/2017 – Central Tax 11th Dec 2017
GSTR-4 (Composition) Notification No. 59/2017 – Central Tax 24th Dec 2017
GSTR-6 (ISD) Notification No. 62/2017 – Central Tax 31st Dec 2017
ITC-04 (for job work) for quarter of Jul-Sep Notification No. 63/2017 – Central Tax 31st Dec 2017
TRAN-1 31st Dec 2017

Impact on small businesses

Businesses with turnover upto Rs 1.5 cr. need to file returns and pay taxes once a quarter.

Impact on Service Providers

** vide: Notification No. 58/2017 – Central Tax **
  • If the aggregate turnover of a business is less than Rs. 20 Lakhs (10 lakhs in special category states except J&K), such businesses are exempted from GST registration, even if inter-state supplies are made.
  • Services provided by a GTA to an unregistered person exempted from GST.
  • TDS/TCS provisions postponed till 31.03.2018.

Impact on Exporters

Refund cheques to be processed as under:
  • For July exports by Oct 10
  • For August exports by Oct 18
  • Starting April 2018, every exporter to get an e-wallet with a notional amount for credit. Refund credit will be offset from that amount.
  • Merchant exporters to pay 0.1% GST to enable ITC claim for their suppliers.

Impact on Composition Scheme

  • Businesses ineligible for the composition scheme due to providing any exempt services will now be eligible for the composition scheme.
  • Eligibility of composition scheme will now be Rs 1.5 crore.
  • Traders will pay 1%, manufacturers 2% and restaurants 5%.
  • Those who have opted in for composition after GST came into effect, will have to file GSTR-1,2,3 for that part period.

Impact on RCM

Reverse Charge Mechanism suspended till 31.03.2018.

Impact on advance receipts

For businesses with turnover under Rs 1.5cr

Taxpayers having annual turnover upto 1.5 crore not required to pay GST at the time of receipt of advances for any supply of goods. Notification No. 66/2017 – Central Tax

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