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GST Returns Relaxed

GST Returns Relaxed

Rollout set for July 1; deadline for filing returns for first two months relaxed

GST, the biggest tax reform in history of independent India, will require companies to file three online returns each month. Some industry bodies had earlier urged for GST rollout to be delayed further from July 1 to allow companies more time to get ready.

In a move to address the apprehensions about the burden of compliance under the Goods and Services Tax (GST) regime, the GST Council on Sunday decided to relax the deadline for filing of returns for the first two months following GST’s rollout.

The government would allow companies to file late returns for the first two months after the implementation of the Goods and Service Tax (GST) regime on July 1, Finance Minister Arun Jaitley said on Sunday after a meeting of the GST Council. This would help companies adapt to the new online filing system.

 There was no luxury of time to defer the implementation of GST.  Finance Minister , Arun Jaitley

The formal transition to the indirect tax regime, is likely to take place in Parliament at midnight on June 30.The official launch of the GST will take place on the midnight of June 30 and July 1 at a function which will be organised in Delhi.

The Council also cleared six draft rules relating to 1 .Advance ruling, 2&3. Appeal and revision, 4. Assessment, 5. Anti-profiteering and 6. Funds settlement.

Here are the key decisions taken by the GST Council on Sunday explained in 10 points:

1. Implementation: GST was fixed for July 1 rollout as per schedule in the council meeting.. Finance Ministry had earlier urged the public to not be misled by false rumours about delay in  GST rollout.  Even as it is now certain that there is going to be no delay in the rollout, it is believed that necessary relaxation in rules would be given as and when required.

2. Relaxation in filing of returns: Corporations would need to file a single-page summary return in GSTR-3B form on a self-declaration basis for the first two months – July and August – by the 20th day of the following month. Since the return filing dates have been relaxed, there will be no late payment fees.

For the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month. However, the invoice-wise details in regular GSTR – 1 would have to be filed for the month of July and August, 2017 as per the timelines given below –

MonthGSTR – 3BGSTR – 1GSTR – 2 (auto populated from GSTR-1)
July, 201720th August1st – 5th September*6th – 10th September
August, 201720th September16th – 20th September21st  – 25th September

* Facility for uploading of outward supplies for July, 2017 will be available from 15th July, 2017.


3. Relaxation in tax rate for hotels: For hotels with tariff between Rs 5,000 and Rs 7,500, a reduced GST rate of 18 per cent will apply. The restaurants at these hotels would also be taxed at 18 per cent. The GST rate for this category of hotels has been reduced to 18 per cent from the 28 per cent proposed earlier.

4. Tax rate on lotteries: State-run lotteries are going to be taxed under the GST regime at 12 per cent, while state-authorised private lotteries would fall in the 18 per cent tax slab.

5. Negative list of Composition Scheme: Only three products – ice cream, paan masala and tobacco – have been added in the negative list of the Composition scheme. This implies that manufacturers of ice creams, pan masalas and tobacco have been excluded from the composition scheme.

6. GST E-way bill issue remains unresolved: The Council deferred a decision on e-way bills due to lack of consensus, it will be  implemented later once rules for it are finalised. Council stopped short of allowing trade without e-waybills until it is implemented and allowed the states to continue with the current process. It means States  which have an e-waybill structure in place can continue with it.

The decision to leave e-way bills to the states for now would increase complications for businesses

7. Input tax credit on ships: An integrated GST rate of 5 per cent, with full input tax credit, would apply on ships.

8. Anti-profiteering rules: The Council also approved the anti-profiteering rules. A five-member anti-profiteering authority will be set up to decide on levying penalty if businesses do not pass on the benefit of price reduction to consumers under the GST regime. The authority, to be headed by a retired secretary-level officer, can take suo motu action, besides acting on complaints of profiteering. . The anti-profiteering provision, Jaitley said, was meant to be a deterrent. The Council decided to put a two-year sunset clause for the anti-profiteering provision

9. New registration: For the upcoming GST regime, new registrations would begin from June 25.

10. Textiles: The GST Council has made it clear that there would be no further relief to the country’s textiles sector before the rollout of GST.

The GST Council will meet again on June 30 to take stock and decide before the implementation of GST.



  1. Tapas Ghosh says:

    If I have no transaction in the period of July 2017, can still we submit the GSTR 3B?
    Please confirm!

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