GST to be implemented from July 1,2017
Briefing
the press after the meeting of the GST Council on June 18, 2017, Union Finance Ministers Shri Arun Jaitley reaffirmed that GST would be implemented from July 1, 2017.He also announced the formal launch of GST on midnight of 30th June 2017.
He stated that West Bengal has issued an Ordinance and that Tamil Nadu would pass the SGST Act on 19th June, 2017. The only other State to Pass SGST Act is Jammu & Kashmir.
We do hope that Jammu & Kashmir would pass the SGST Act and join the main stream on July 1,2017.
Relaxation in filing of Returns
Considering the concerns on the preparedness of Trade and Industry, the GST Council decided to relax the Rules for filing of returns for July and August 2017.
The relaxations are
Ø The Returns for July and August 2017 would be filed on self assessment by 20th of the following month in Form GSTR 3 B, which will be a summary of Inward and Outward Supplies and the applicable tax is to be paid.
Ø GSTN would make available the return filing module by 15th July. GSTR 1 and GSTR 2 will have to be filed for July 2017 by 5th September and for August 2017 by 20th September 2017, No late fee or penalties would be levied.
Ø The timelines for filing of Returns would be strictly adhered to from the return period from September 2017.
Review of Rate of Tax on Goods
The GST Council decided not to review rate of tax now. The Finance Minister stated that any review of rate of tax would be taken up after 3 months.
However the rate of tax on lottery Tickets and Hotel Rooms were announced.
For hotel rooms with tariff between Rs.2,000 and Rs.5,000 the rate of tax would be 18% and rooms with tariff above Rs.7,500 the rate of tax would be 28%. GST on restaurants in these hotels will be 18%, at par with other air-conditioned restaurants.
State-run lotteries will be taxed at 12% of the face value and state authorised lotteries would be taxed at 28%.
Composition Scheme
The threshold limit to opt for composition for North Eastern States is fixed at annual turnover of Rs.50 lakhs. For Uttarakhand and Jammu & Kashmir the threshold limit would be annual Turnover of Rs.75 Lakhs.
Rules for Anti Profiteering Provision
The Rules for Anti Profiteering Clause have been announced. Shri Arun Jaitley stated that the Anti Profiteering Clause is more of a deterrent.
It is learnt that action under Anti Profiteering Clause would be invoked on specific complaint of profiteering. The proposal as reported is to set up a committee of State and Central Officials who would look into the complaints.
The Anti Profiteering Authority would have powers to to summon a person whose attendance is considered necessary, in line with judicial and would be functional for 2 years from implementation of GST. The Anti Profiteering Body would have powers to direct reduction of price and also decide on the punitive action.
Rules Approved
The GST Council approved Rules relating to Advance Ruling, Appeal and Revision, Assessment and Audit, Anti Profiteering and Funds Settlement.
Click to download Advance Ruling Authority Rules, Appeal and Revision Rules, Assessment and Audit Rules.
E Way Bill Rules
The final E Way Bill Rules have not been finalized. It is stated that transient rules to be announced. It is likely that the State E Way Bills may be made applicable till then.
It is stated that it would take 3-4 months for GSTN to put in place the necessary hardware and software to administer the E Way Bill Rules, after it is finalized.
Next meeting of the GST Council
The next meeting of the GST Council is scheduled on June 30, 2017.
Date: 19/06/2017