Summary Decisions of 22nd GST Council Meeting

Summary Decisions of 22nd GST Council Meeting

Detailed and easily understandable Summary Decisions of 22nd GST Council Meeting

Hello everyone this blog is about detailed understanding of what discussed in the 22nd GST council meeting held at New Delhi on 6th Oct 2017


Ever since Government has rolled out GST on 1st Jul 2017. It has given so much headaches to the Businessmen and to the several Tax practitioners. Tidy schedules for other regulatory compliances and lack of understanding led to so many complexities and increase in cost of compliances for several small business owners. In the view of controlling this complexities GST council has facilitated few major changes that will bring a huge relief to small businessmen before Diwali.


The GST Council, in its 22nd meeting held at New Delhi on 6th Oct 2017, has recommended following changes to ease the burden of small & medium businesses:

Composition Scheme


After exercising power given under Goods & Service Tax Act 2017, Government on recommendation made by GST Council has increased the limit of annual aggregate turnover from current threshold limit of Rs. 75 Lacs to Rs. 1 Crore


This threshold for turnover for special category states, Except Jammu & Kashmir and Uttrakhand has also been increased from Rs. 50 Lacs to Rs. 75 Lacs. The threshold for Jammu & Kashmir shall be Rs. 1 Crore.


States that comes under special Categories are:

  • Arunachal Pradesh
  • Assam
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagaland
  • Sikkim
  • Tripura
  • Himanchal Pradesh


Government has also made sure that this increased limits shall become exercisable for migrated and New Registered Tax payers who are migrated or Newly registered up to 31st march 2018


Those registered Tax payers who has opted for composition scheme shall file their respective returns prior opting this scheme as normal tax payer.

GSTR 4 shall be filed by all the composition dealers by every quarter ending up to 18th of succeeding month


Due to increase in the turnover threshold greater number of tax payers shall avail the benefits of easier and cost effective compliance under Composition scheme and it’ll provide great benefits to the MSME sectors.

No need to get registered for Inter-state supply of Taxable services up to Rs. 20 Lacs


Prior GST, Supply of services was not considered as intra-state of inter-state because It was governed under CBEC, and one single rate was prescribed also the threshold was provided up to the limit of Rs. 10 lakh and Tax payers enjoyed benefits of being Small Service Provider(SSP) given under notification 33/2012 under finance act 1994.


Ever since GST came into existence it brought supply of services within the same definition of supply of Goods and hence, GST become applicable irrespective of turnover criteria. A lot of business got disturbed because of this, further there was no provision of reverse charge mechanism over inter-state supplies other than those provided by Lawyers. It became headaches to several business owners


In the view of said situation government has restored that threshold limits for supply of services. No Registration required under GST for providing taxable inter-state supplies up to Rs. 20 Lacs (Rs. 10 Lacs in special category states except Jammu & Kashmir). This measure is expected to significantly reduce the compliance cost for small service providers


Please Note: The exemption is provided to only service providers and not to traders

Reverse Charge Mechanism Suspended  


Government introduced Reverse Charge Mechanism (RCM) under GST for Inward supplies having value more than Rs. 5000 from an unregistered supplier that created fuss for several small businessmen.


GST council on its 22nd meeting has deferred the above provision up to 31st March 2018. This has given huge relief to Small & Medium Businesses.

Only 3 Returns per Quarter Ending for Business having turnover up to 1.5 Crores


In 22nd GST Council Meeting Government has given one huge gift prior Diwali to all the SMEs


In GST, GSTR 1, 2 & 3 was to be filed every month which increased stampede not only it gave anxiety to Businessmen but to Tax Practitioners across country.


Small/Medium business having turnover up to 1.5 Crores need not to file returns every month. In fact, they are given relaxation by filing returns every quarter ending. Hence reduced compliance cost and unwanted anxiety

Goods Transport Agency (GTA)


Most of the GTAs were not providing services to the Unregistered Persons due to this they were facing hardship doing business. In the meeting Government has clarify that GTA no need to take GSTIN for transportation services, hardship lifted SMEs isn’t it?

No TDS/TCS up to 31.08.2018. So Relax

Due date extended for GSTR 4 for Composition Scheme


Due to heavy fuss Council has extended the date for filing GSTR-4 return for composition scheme for Quarter ending (July to Sep 2017) to 15th Nov 2017.


Please note: Normal tax payers who opted for composition scheme shall have to file their returns as normal tax payers before opting for such scheme



Hello People if you have any doubts or query about Goods & Service Tax feel free comment below. We’d hope to resolve it as soon as possible.