Recommendations made by the GST Council in the 22nd meeting at New Delhi on 6th October, 2017

CEPC/GST/2017                                                                  DATED : 07.10.2017



All members of CEPC



Dear members,


We are happy to share with you below important outcome after meeting of GST Council dated 06th Oct,2017:


1. Composition scheme turnover limit extended to Rs. 1 crore.

2. Decision in two weeks by Group of ministers on two points for Composition dealers: Whether This turnover figure to exclude exempt goods and Whether Composition dealers can now sell interstate.

3. Quarterly return in GSTR 1, 2 and 3 for persons other than composition taxpayers having turnover upto 1.5 crore. Rest all to file monthly returns. New switchover for small taxpayers from December 2017 quarter.

4. Decision in two weeks by Group of Ministers for Restaurant dealers: Rate of tax in AC restro reduced to 12%. Committee formed for same.

5. Exporters need not pay IGST till March 2018 by obtaining Letter of Undertaking (LUT) or alternatively pay IGST amount and seek refund till March 2018.  A nominal 0.1% deduction will be applicable on IGST refund amount for Exports. Special provision for EPCG AND EOU UNITS and advance license scheme that they need not to pay GST on imports. New e-wallet system for every exporter from 1 April 2018.

6. Refund of GST already paid by Exporters in July and August to be allowed from October 10 and October 18 respectively.

7. RCM provisions u/s 9(4) deferred till March 2018. RCM u/s 9(3) such as GTA, advocate etc. still to continue.

8. Rate of manmade Yarn reduced to 12%. Various food items, paper plastic waste and Ayurvedic medicines also rated to 5%. Stones except marble and granite reduced to 18%.

9. No need to obtain KYC of buyers of Jewellery above Rs. 50,000 under PMLA. Only PAN required for purchases above Rs. 2,00,000 under income tax provisions.
10. E-way bills deferred till March 2018.

11. Persons providing any exempted services interstate not to take mandatory registration.
12. TDS and TCS provisions deferred till March 2018.

13. Persons having turnover upto Rs. 1.5 crore need to pay tax only on invoicing. No need to pay GST on advance.

14. Rate for services related to job work of ZARI, imitation jewellery, food items and printing reduced 5%.

15. Rate for Government contracts having high amount of labour reduced to 5%.

16. Presently, anyone making inter-state taxable supplies, except inter-State job worker, is compulsorily required to register, irrespective of turnover. It has now been decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lacs (Rs. 10 lacs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services. This measure is expected to significantly reduce the compliance cost of small service providers.


The notification in this regard will be issued shortly. However, the press release  is attached for your information.




Mahavir Pratap Sharma


Please see attached documents.
Recommendations made by the GST Council in the 22nd meeting at New Delhi on 6th October, 2017