India: Highlights Of The Decisions Taken In The 23rd GST Council Meeting

Last Updated: 24 November 2017
Article by SKP  

The 23rd GST Council meeting held in Guwahati has made some sweeping changes in the current framework of Goods and Services Tax (GST) regime. Some of the key decisions of the meeting are:

Relaxation in return filing procedure

The return filing cycle has been simplified in the following manner:


  • Filing of Form GSTR 3B on a monthly basis would be continued until March 2018 (Notification No. 56/2017 - Central Tax).
  • The due date for the payment of taxes and filing GSTR 3B would continue to be the 20th day of the subsequent month.


  • The facility to file GSTR-1 on a quarterly basis has been granted to taxpayers with annual aggregate turnover up to 15 million (Notification No. 57/2017 - Central Tax).
  • For a taxpayer with an aggregate annual turnover of more than 15 million, filing of GSTR-1 on a monthly basis would continue (Notification No. 58/2017 - Central Tax).
  • The due dates for filing GSTR-1 are:

    Companies with annual aggregate turnover more than 15 million Companies with annual aggregate turnover less than 15 million
    Month Due Date Period Due Date
    July 2017 31 December 2017 July to September 2017 31 December 2017
    August 2017 31 December 2017
    September 2017 31 December 2017
    October 2017 31 December 2017 October to December 2017

    15 February 2018

    November 2017 10 January 2018
    December 2017 10 February 2018
    January 2018 10 March 2018 January to March 2018 30 April 2018
    February 2018 10 April 2018
    March 2018 10 May 2018

GSTR-2 and GSTR-3

(Notification No. 57/2017 - Central Tax; Notification No. 58/2017 - Central Tax)

  • The facility of filing form GSTR-2 and GSTR-3 has been temporarily suspended for the period of July 2017 to March 2018. Presently, taxpayers are not required to file GSTR-2 and GSTR-3 for these periods.
  • The period for filing GSTR-2 and GSTR-3 for the period of July 2017 to March 2018 shall be announced by a committee of officers.
  • It is advisable for taxpayers to be ready with the data required for filing of GSTR-2 and GSTR-3 for the period above, as the due dates could be announced any time.

Extension in the due dates of few other GST returns and forms:

Form No. and period Purpose Revised due date Notification/ Order No.
(July – September 2017)
For dealers opting for composition scheme 24 December 2017 59/2017 - Central Tax
(July 2017)
For registered non-taxable person 11 December 2017 60/2017 - Central Tax
(July 2017)
Details of supply of online information and database access or retrieval services by a person located outside India made to a non-taxable person in India 15 December 2017 61/2017 - Central Tax
(July 2017)
Input Service Distributor (ISD) 31 December 2017 62/2017 - Central Tax
(July – September 2017
Details of inputs or capital goods sent and received back from job workers 31 December 2017 63/2017 - Central Tax
TRAN-1 and revised TRAN-1 Declaration for claim of input tax credit 27 December 2017 Order No. 9/2017 - GST
Order No. 10/2017 - GST

Relaxation in late fee

  • The penalty for late filing of returns for the month of July, August and September has already been waived off and refunds are being credited to taxpayers online GST account. Furthermore, it has been decided that where any such late fees were paid, it will be re-credited to the electronic cash ledger under the 'tax head' instead of 'fee head' so as to enable the taxpayers to use that amount to discharge their future tax liabilities.
  • Per day penalty for delay in filing of returns has been reduced for filing of returns from October 2017 onwards (Notification No. 64/2017 - Central Tax), which are:

    Particulars Untill September 2017 From October 2017
    Nil returns INR 200 per day (waived off) INR 20 per day
    Others INR 200 per day (waived off) INR 50 per day

Composition scheme dealers

  • A uniform GST rate of 1% under composition scheme has been granted to manufacturers and traders (earlier, only manufacturers were falling under the 1% GST category).
  • The annual turnover limit for composition scheme has been increased to INR 20 million from the present limit of INR 10 million (no clarity has been provided regarding special category states in this matter).
  • The composition dealers would be allowed to make a supply of services up to INR 0.5 million per annum which would be treated as exempt supply.

Changes relating to GST rate on restaurant service (vide Notification No. 46/2017-Central Tax (Rate))

The following categories of restaurants have been imposed with a GST rate of 5% and no Input Tax Credit (ITC), effective from 15 November 2017:

  • All stand alone1 restaurants (whether air-conditioned or not).
  • Food parcels or takeaways.
  • Restaurants in hotels with room declared tariff2 of less than INR 7,500/day.

The following categories of restaurants would have to charge GST rate of 18% and can claim full ITC:

  • Restaurants in hotels with room declared tariff of more than INR 7,500/day.
  • Outdoor catering.

Other reduction in rates

The Central Board of Excise and Customs (CBEC) has changed the GST rates of various items vide notification no. 42/2017-Central Tax (Rate) dated 14 November 2017 and 41/2017-Central Tax (Rate) dated 14 November 2017. Corresponding notification to change integrated tax and Union territory tax has also been issued.

The following is a summary of rate changes recommended in the GST council meeting:

Rate change Items
28% to 18% 177 Items
28% to 12% 2 Items
18% to 12% 13 Items
18% to 5% 6 Items
12% to 5% 8 Items
5% to Nil 6 Items

Export of Services to Nepal and Bhutan

Export of services to Nepal and Bhutan was exempted vide notification no 42/2017-Integrated Tax (Rate) dated 27 October 2017, even if the payment is received in Indian currency. Since the services were exempted and not nil rated, no ITC was allowed on such supply.

The government has extended the benefit of claiming ITC in respect of goods and services used for making such exempt supply of services to Nepal and Bhutan and bringing such services at par with other exports.

Application of Advance Ruling

A facility for filing a manual application for advance ruling shall be introduced soon.

No tax on advances received

  • The CBEC vide Notification No. 40/2017 - Central Tax dated 13 October 2017 had extended the facility of no payment of tax on advances for outward supplies of goods for dealers having an annual turnover of INR 15 million and those who have not opted for composition scheme.
  • The CBEC vide Notification No. 66/2017 - Central Tax dated 15 November 2017 has extended the above facility of no payment of tax on advances for outward supplies of goods to all dealers who have not opted for composition scheme irrespective of their turnover limit.
SKP's comments

The biggest relief to the taxpayers who are reeling under the technical glitches of the current GST portal is the temporary suspension of filing of GSTR-2 and GSTR-3 until 31 March 2018. Continuation of GSTR-3B and GSTR-1 until such time will both safeguard revenue on the one hand and ease the compliance burden on the other. We can hope that the review of return forms by the committee of officers will lead to the redesign of the compliance mechanism which will provide long-term relief.

Lowering the rates from 28% to 18% of 178 items will undoubtedly come as a consumption boost giving a fillip to the economy. Allowing manual filing of advance ruling applications would help in the resolution of disputed questions. By extending the benefit of ITC to services provided to Nepal and Bhutan, the GST Council has brought such services at par with exports. A flat GST rate of 5% on restaurants without the benefit of ITC has been proposed. This is mainly due to the concern of the government that benefit of increased input tax credit was not being passed on to the consumers

Overall, 23rd GST council meeting has brought a huge cheer amongst taxpayers, consumers and tax professionals.


[1] Restaurants other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places

[2] 'Declared tariff' includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions