The 25th GST Council Meeting was held at New Delhi on the 18th of January 2018. In addition to relaxation of GST rules and regulations, GST rates have also be reduced for various goods and services. Here are the outcomes of this meeting:
- GST council cut rates on 29 products and 53 services. These new rates will be implemented from 25th January 2018.
- Council members also discuss on E-way Bill. E-way bill system will go through a test from January 25 and will be implemented on a mandatory basis from Feb 1.
- No discussion on Petroleum & Real-estate
- GSTR 3B return filing will continue for the time being
- Total collection under composition scheme is only Rs.307 Crore
Penalty for Late Filing GST Return Reduced to Rs.50 – Rs.20 for NIL Return
The penalty for late filing of GST returns has been further reduced by the 25th GST Council Meeting. Now, any business that failed to file GSTR1 return, GSTR5 return or GSTR5A return will only have to pay a penalty of Rs.50 per day of default. In case of failure to file NIL GST return, the penalty has been reduced to just Rs.20 per day. The reduction in penalty for late filing GST returns will reduce the compliance and penalty burden on many small and medium businesses across the country.
Cancellation of GST Registration
- Taxable persons who have obtained voluntary registration will now be permitted to apply for cancellation of registration even before the expiry of one year from the effective date of registration.
- For migrated taxpayers, the last date for filing FORM GST REG-29 for cancellation of registration is being extended by further three months till 31st March, 2018.
E-Way Bills Can Be Out
During the last GST council meeting in December, it was announced to implement e-way bills from February 1. So, this time we can expect the council to discuss the mechanism of the e-way bill to implement it in a better manner from the next month.