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Extension on GST Return Filing dates: GST Council

In the 23rd meeting of GST, headed by the Finance minister Arun Jaitley has recommended the facilitative measures for the tax payers as well.

It is recommended that all the tax payers are required to file return in a particular date as reads the current press release

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

Also to file the above mentioned form, the tax payers would be divided into two categories.

  • Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR – 1 on quarterly basis as per following frequency.
Period Dates
 Jul- Sep 31st Dec 2017
Oct- Dec 15th Feb 2018
Jan- Mar 30th April 2018


  • Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file GSTR – 1 on monthly basis as per following frequency.
Period Dates
Jul- Oct 31st Dec 2017
Nov 10th Jan 2018
Dec 10th Feb 2018
Jan 10th Mar 2018
Feb 10th Apr 2018
Mar 10th May 2018

The committee of officers are yet to decide upon the time period for filing these two GST returns. However, filing of GSTR – 1 will continue for the entire period without requiring filing of GSTR – 2 & GSTR – 3 for the previous month / period.

Also, a large number of tax payers were unable to file their GSTR – 3B on time, and had to pay fine charged. Hence the committee has come to a decision that in such cases the fee will be re – credited to their Electronic Cash Ledger.

What are the benefits of service providers?

In the meeting, the tax fitment committee has decided that the exporters of Nepal and Bhutan those who were exempted from GST, will now be eligible for claiming Input Tax Credit.

In the previous GST council meeting, the service providers with annual income of Rs. 20 lakh (Rs. 10 lakh for J and K) were exempted from obtaining registration even if they are making inter – State taxable supplies of services. In the meeting took place on 10th November 2017, the council has decided to exempt such suppliers providing services through an e – commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakhs rupees.

Few dates to file the returns have also been extended, read the table below to know the extended dates:

S. No. FORM and Details Original due date Revised due date
1 GST ITC-04 for the quarter July-September, 2017 25.10.2017 31.12.2017
2 GSTR-4 for the quarter July-September, 2017 18.10.2017 24.12.2017
3 GSTR-5 for July, 2017 20.08.2017 or 7 days from the last date of registration whichever is earlier 11.12.2017
4 GSTR-5A for July, 2017 20.08.2017 15.12.2017
5 GSTR-6 for July, 2017 13.08.2017 31.12.2017
6 TRAN-1 30.09.2017 31.12.2017 (One-time option of revision also to be given till this date)

Table source: http://pib.nic.in/newsite/erelease.aspx

Exemption from IGST / GST in certain specified cases

In the two – days GST meeting, which was held in 10th November, 2017, the council has recommended major relief in GST rates on certain Goods and Services.

In the meeting, the council has taken the 28% tax slab into reconsideration and decided to keep the highest 28% tax on luxury and sinful items. Hence, 177 items have been shifted to the 18% tax bracket.

Let’s discuss some of the other major recommendations of the council.

Exemption from IGST / GST in certain specified cases

The fitment committee has exempted IGST (Integrated Goods and Service Tax) on imports of life saving medicines supplied free of cost by overseas supplier for patients. This exemption has also been applied on imports of goods (except vehicles) in case the IGST is paid on the lease amount.

Also the exemption has been outstretched to the dairy cooperatives where milk is distributed through companies registered under the Companies Act, where this exemption was limited to production.

Other changes have also been made on some of the services which are as follows

  • Also the restaurants will now fall in the 5% tax bracket irrespective of being air conditioned or not. Food parcels will also attract 5% GST without ITC.
  • Hotels having room tariff of less than Rs 7500 per unit per day will also fall in GST of 5% without ITC.
  • Hotels having room tariff of Rs 7500 and above per unit per day will also fall in GST of 5% without ITC.
  • As before it has been fixed, the outdoor catering will continue to be at 18% tax bracket will full ITC

Rationalisation of certain exemption entries

Services that Fair Price Shops provide to the Central Government, State Government, or Union Territories by way of sale of basic necessities such as food grains, kerosene, sugar, edible oil etc has been taken into consideration and was rationalized in order to clear out the confusion regarding list of items and the category of recipients to whom the exemption is available.

Intellectual property is a supply of goods and services

  1. Permanent transfer of Intellectual Property other than Information Technology software attracts GST at the rate of 12%.
  2. Permanent transfer of Intellectual Property in respect of Information Technology software attracts GST at the rate of 18%.

GST Council reduces tax on 175 items from the highest tax slab i.e. 28%

On 23rd GST council meeting, the committee slashed rates on more than 175 items, which is considered to be biggest tax reductions since the new taxation system i.e. Goods and Service Tax (GST) came into being since July 1st.

The council today at 23rd GST council meeting which took place in Guwahati, Assam has decided to keep only 50 luxury and ‘Sin’ items such as tobacco in the highest tax slab i.e. 28%.  Also the council unanimously retained air conditioners, washing machines, paints, cement in the 28% tax bracket.

Bihar Deputy Chief Minister Sushil Modi said that the daily used products or mass consumptions such as shampoo, chocolate, beauty products and construction items such as marble and granite will be shifted from 28 per cent slab. However, this step will result in a revenue loss of Rs. 20 crore as the number in goods in the highest tax bracket is cut down to less than one – fourth.

There were 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items.

He further added,

The council is set to approve sweeping changes including simpler procedures, a single return filing form for small firms and several changes to make composition scheme more attractive.

With the decision the AC and paint makers said that the “decision was expected”. Air condition maker Blue start told one of the source that

the GST council’s decision to retain the 28 percent tax slab was largely expected. Any reduction in rates would have kick started the market.

To the same source, paint maker Kansai Nerolac said that

the company will have no choice but to pass on the burden to the consumer if cost increase.

GST council to review 28% tax slab: GST Meet

Another Goods and Service Tax council meeting took place on 11th November in Guwahati, Assam, where the GST council is all set to cut out some of the common use items by SMEs (Small and Medium Enterprises) from the highest tax slab i.e. 28% to a lower tax slab.

In the reconsideration of 28% tax slab, the tax rate fitment committee has decided to shift the decided items on a lower tax slab of 12% or 18% as the council wants to address the public issues regarding high tax rate i.e. 28% of certain items of common use such as ceiling fans, cement, automobile components, electrical fittings, sanitary fittings, shaving cream, cases for spectacles, goggles etc.

And also to provide some relief to the SMEs, which are labour – intensive. And according to the Ministry of micro and small and medium enterprises, India is home to nearly 56 million SMEs.

Besides, SMEs contribute only about 5% to the total indirect tax revenue. Hence giving relief to them may not hit revenue collection. The idea is to ease the pain, not to dilute GST structure.
says a member of the Ministry of Micro and Small and Medium Enterprises.

According to the revenue department 80% of the tax payers contribute only 20% of tax revenue whereas, the remaining small section of the assessee account for the big share of tax proceeds.

Regarding the matter, another official says

The same product may be manufactured by large industry players as well as SMEs. In such cases, a rate cut will affect revenue receipts from the bigger players too altogether they need no such relief.

He also added that

the eventual goal is to retain only so – called sin goods such as cigarettes, the consumption of which the state wants to discourage, in the highest tax slab. However, the pruning of the items in 28% slab may be a gradual exercise as the GST council has to also take into account revenue considerations as tax evasion is common in the country.

GST on Rental Income

Currently India is going through a lot of changes after the implementation of GST. Government vowed that the new GST (Goods and Service Tax) will change the whole economy and the service sector will be effected more compare to the manufacturing industry. GST has also structured the approach to collect taxes from various sectors.

In this article we will particularly discuss the impact of GST on rental income.

Under GST, the Schedule 2 of the GST Act states that

renting GST is applicable only on certain types of rent such as; if the property if given on rent, lease or licensed to occupy or in case if a property is leased out include a commercial, industrial or residential property for business.

Under Service Tax Regime

Before GST came into being, the landlord were required to obtain a service tax registration, in case of his total taxable service is limited to Rs. 10 lakhs per year. In case from all the properties you have rented does not exceed Rs. 10 lakhs per year, the land does not require to obtain a service tax registration.

GST on Rental Income

Under GST Regime

Under GST regime, in case if you rent out a residential property for residential purpose, it is exempted from GST. In case if you rent out or lease out an immovable property for business would fall under the tax bracket of 18%, as it would be considered as a supply of service.

After GST came into being, the limit for applicability of GST has been increased to Rs. 20 lakh from Rs. 10 lakh. This makes the landlords who were earlier covered under Service tax regime would be kept outside the indirect tax bracket.

Who is required to register when renting out property business?

If you are a tax payer who is earning more than the exempted threshold i.e. Rs. 20 lakh is required to register under GST and pay taxes.

How GST is calculated when you rent out a property for commercial purposes?

In case you are renting out a property for commercial purposes, GST will be applicable at 18% tax bracket on the taxable value rent would be treated as a taxable supply of service.

In case of a registered charitable trust or a religious trust which is meant for public use, it is exempted from GST only in case of:

  • In case the renting rooms are charged Rs. 1,000 or less per day
  • In case they are renting shops and other spaces for business purpose and are charging Rs. 10,000 or less per month
  • In case they rent community halls or an open area and are charging Rs. 10,000 or less per day

What is the impact of GST and TDS on rental income?

Under the income tax law, in real estate investment, the rental income is taxed under ‘Income from House Property’, and it is a direct tax law of the country. Also, let out properties are subject to indirect taxation.

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