Introduction

GST Council has decided to implement GST from 1st July. Finance Minister Arjun Jaitley announced that there will be a special launch of GST at New Delhi on the midnight of 30th June.  Now it’s certain that GST roll out date won’t be postponed from 1st July 2017 but necessary relaxation in return filing rules will be given. The objective of ensuring a smooth rollout of GST and taking into account the concerns expressed by the trade and industry regarding relaxation in return filing in GST regime. For the first two months of GST implementation, GST Council has decided that the tax payable will be according to Form GSTR 3B containing a summary of outward & inward supplies which is to be submitted before 20th of the next month.

Relaxation in return filing

The relaxation in return filing until September will mean no late fees or penalties. The Traders have a time until July 20 to pay tax based on a simple return and invoice details can be filed from July 15 onwards. The GST Council had said that the registration window will open from June 25 for new registrants as also those migrating from the existing tax system to GST.

The invoice-wise details in regular GSTR 1 would have to be filed by the individual for the month of July and August 2017 as per the timelines are given below –

Month GSTR 3B GSTR 1 GSTR 2 (auto populated from GSTR 1)
July 2017 20th August 1st – 5th September 6th – 10th September
August 2017 20th September 16th – 20th September 21st – 25th September
  • The relaxation in a return filing until September will help an individual with paying no late fees or penalties.
  • Traders will have time until July 20 to pay tax based on a simple return while invoice details of the return can be filed from July 15 onwards. The GST Council had said that registration window will open from June 25 for new registrants as also those migrating from the existing tax system to GST.

Nuts and bolts fixed

The council approved changes in the threshold for the composition scheme in the Northeast to Rs 50 lakh instead of Rs 75 lakhs, raised at the last meeting and applicable for all other states, citing the small trader base there. It has also expanded the negative list for the composition scheme to include Ice-cream, Pan masala, and Tobacco.

The council also gave the go-ahead to five sets of rules dealing with advance rulings, appeals, and revisions, assessments, anti-profiteering and funds settlement.

Another set of rules dealing with the E-Bill was discussed at length but could not be finalized because of divergent opinions among states. The E-way draft bill mandates that any transfer of goods over Rs. 50,000 will need an E-way permit for transfer within and outside a state. Jaitley said until a final decision is taken, existing provisions would prevail and the council has set a 5% integrated GST on shipping vessels with input tax credit.

In case you are confused about GST as a business owner, feel free to consult the GST experts at LegalRaasta. You can get comprehensive assistance on GST Registration Online and GST Return online. You can also use our GST software for doing end-to-end GST compliance.