Major Reliefs to the Taxpayers Recommended by the 23rd GST Council Meeting

Last Updated On: March 19, 2019, 12:53 p.m.

The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has recommended the following facilitative measures for taxpayers:

Return Filing

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

2. Form GSTR-1 (Return of outward supplies) has been divided into two parts as those with aggregate turnover up to 1.50 cr. and above that. Due date of GSTR-1 for both classes shall be as under:

(a) Taxpayers with annual aggregate turnover uptoRs. 1.5 crore need to file GSTR-1 on quarterly basis as per following frequency:


(b) Taxpayers with annual aggregate turnover more thanRs. 1.5 croreneed to file GSTR-1 on monthly basis as per following frequency:

3.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 Officers. However, filing of GSTR-1 will continue for the entireperiod without requiring filing of GSTR-2 & GSTR-3 for the previous month / period.

4. Late fee paid by some of dealers for 3B shall be credited back to those taxpayers in electronic cash ledgers under the head taxes instead of fee. This move has been taken to facilitate taxpayers so that can use this money to pay their taxes.

5. Late fee for delay filing of form 3B has been reduced from existing Rs. 200 per day to Rs. 20 per day in case of Nil Returns where no tax is payable by Assessee. This reduction shall be applicable from October 17 onwards for susequent months.

Manual Filing for Advance Ruling

6. A facility for manual filing of application for advance ruling is being introduced for the time being. This is major relief because there is a lot of confusion over many issues which need clarification through advance ruling.

Benefits for Service Providers

7. Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Credit in respectof goods or services used for effecting such exempt supply of services to Nepal and Bhutan.

This means supply of services to Nepal and Bhutan has been made zero rated in line with supply to other countries which enjoy status of refund under section 54(3) of CGST Act.

8. As a further measure towards taxpayer facilitation, it has been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakh rupees. 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 Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K). A suitable exemption order shall be issued under section 23(2) of CGST Act for exempting these service providers from registration under section 24(ix).

Extension of Dates

9. Due to system issues and other technical problems due dates for various compliance forms have been extended as under:

10. In order to lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued to every Foreign Diplomatic Mission / UN  organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.

11. A complete overhaul of composition scheme is recommended by Council where eligible limit shall be enhanced from existing Rs. 01 cr. to 2 cr. by suitably amending proviso to sub section 1 of section 10 of CGST Act, 2017.

12. Uniform rate of tax @ 1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant. This change shall be prospective in nature and shall apply with the issuance of notification under respective rules and regulation.

13. Supply of services by Composition taxpayer up to Rs 5 lakh per annum will be allowed by exempting the same. In the previous meeting of Council exemption was given for interest and discount from banks and now in case of composition. Now those composition dealers who have service income up to 5 lakhs in a year shall not be barred from composition scheme.

14. Tax rate on restaurants has been reduced from existing 18%/12% to 5% looking at non passing of benefits of input tax credit to consumers by these restaurants. Now flat rate of 5% without input tax credit to restaurants is proposed by GST Council.

(i) All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC. Food parcels (or takeaways) will also attract 5% GST without ITC.

(ii) Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.

(iii) Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.

(iv) Outdoor catering will continue to be at 18% with full ITC.

(v)  GST on services by way of admission to "protected monuments" to be exempted.

(vi)  GST rate on job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration, to be reduced to 5% with full input tax credit. 

15. Rate of tax has been reduced on 177 items from existing 28% to 18%, on 2 items from 28% to 12% and on some items rates has been decreased from existing 12%/18% to 5%. Following is the List of Items:

a)   Goods on which the Council has recommended reduction in GST rate from 28% to 18% include:

Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors

Electrical boards, panels, consoles, cabinets etc for electric control or distribution

Particle/fibre boards and ply wood. Article of wood, wooden frame, paving block

Furniture, mattress, bedding and similar furnishing

Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases

Detergents, washing and cleaning preparations

Liquid or cream for washing the skin

Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient;

Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers

Perfumes and toilet waters

Beauty or make-up preparations

Fans, pumps, compressors

Lamp and light fitting

Primary cell and primary batteries

Sanitary ware and parts thereof of all kind

Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic

Slabs of marbles and granite

Goods of marble and granite such as tiles

Ceramic tiles of all kinds

Miscellaneous articles such as vacuum flasks, lighters,

Wrist watches, clocks, watch movement, watch cases, straps, parts

Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal

Articles of cutlery, stoves, cookers and similar non electric domestic appliances

Razor and razor blades

Multi-functional printers, cartridges

Office or desk equipment

Door, windows and frames of aluminium.

Articles of plaster such as board, sheet,

Articles of cement or concrete or stone and artificial stone,

Articles of asphalt or slate,

Articles of mica

Ceramic flooring blocks, pipes, conduit, pipe fitting

Wall paper and wall covering

Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware

Electrical, electronic weighing machinery

Fire extinguishers and fire extinguishing charge

Fork lifts, lifting and handling equipment,

Bull dozers, excavators, loaders, road rollers, 

Earth moving and levelling machinery,


Cooling towers, pressure vessels, reactors

Crankshaft for sewing machine, tailor’s dummies, bearing housings, gears and gearing; ball or roller screws; gaskets

Electrical apparatus for radio and television broadcasting

Sound recording or reproducing apparatus

Signalling, safety or traffic control equipment for transports

Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment

All musical instruments and their parts

Artificial flowers, foliage and artificial fruits

Explosive, anti-knocking preparation, fireworks

Cocoa butter, fat, oil powder,

Extract, essence ad concentrates of coffee, miscellaneous food preparations

Chocolates, Chewing gum / bubble gum

Malt extract and food preparations of flour, groats, meal, starch or malt extract

Waffles and wafers coated with chocolate or containing chocolate

Rubber tubes and miscellaneous articles of rubber

Goggles, binoculars, telescope,

Cinematographic cameras and projectors, image projector,

Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology

Solvent, thinners, hydraulic fluids, anti-freezing preparation

b) Goods on which the Council has recommended reduction in GST rate from 28% to 12% are:

Wet grinders consisting of stone as grinder

Tanks and other armoured fighting vehicles

Other changes/rationalisation of GST rates on goods:

a) 18% to 12%

Condensed milk

Refined sugar and sugar cubes


Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning

Diabetic food

Medicinal grade oxygen

Printing ink

Hand bags and shopping bags of jute and cotton

Hats (knitted or crocheted)

Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery

Specified parts of sewing machine

Spectacles frames

Furniture wholly made of bamboo or cane

b) 18% to 5%

Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya

Flour of potatoes put up in unit container bearing a brand name

Chutney powder

Fly ash

Sulphur recovered in refining of crude

Fly ash aggregate with 90% or more fly ash content

c) 12% to 5%

Desiccated coconut

Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit]

Idli, dosa batter

Finished leather, chamois and composition leather

Coir cordage and ropes, jute twine, coir products

Fishing net and fishing hooks

Worn clothing

Fly ash brick

d)  5% to nil

Guar meal

Hop cone (other than grounded, powdered or in pellet form)

Certain dried vegetables such as sweet potatoes, maniac

Unworked coconut shell

Fish frozen or dried (not put up in unit container bearing a brand name)

Khandsari sugar

e)  Miscellaneous

GST rates on aircraft engines from 28%/18% to 5%, aircraft tyres from 28% to 5% and aircraft seats from 28% to 5%.

GST rate on bangles of lac/shellac from 3% GST rate to Nil.

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