Major Updates from the 23rd GST Council Meeting
Discover all the significant changes and updates in GST regulations that impact businesses and taxpayers across India.

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Created: 10th July, 2025 10:41 AM, last update:10th July, 2025 10:41 AM
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Introduction
The 23rd GST Council Meeting, held on November 10, 2017, marked a pivotal moment for businesses and taxpayers in India. This meeting introduced several important changes aimed at simplifying compliance and adjusting tax rates across various sectors. Here, we present a detailed overview of the adjustments that will take effect from November 15, 2017, along with their implications for taxpayers.
Changes in the Composition Scheme
The GST Council has revised the composition scheme, which is designed to ease the tax burden on small businesses. Key changes include:
- Increased Limit: The composition scheme limit has been raised to Rs 1.5 crore, with potential extensions to Rs 2 crore in the future.
- Reduced GST Rate: A GST rate of 1% has been introduced for manufacturers and traders.
- Eligibility Criteria: Businesses supplying both goods and services (with services capped at Rs 5 lakhs) can now opt for this scheme.
- Filing Extensions: The due date for filing Composition Returns (GSTR-4) for the quarter ending September has been extended to December 24, 2017.
- Restrictions: Inter-state sales are prohibited for composition dealers, and they cannot claim input tax credits.
Relief in GSTR Compliance
To ease the filing process, the council has implemented several measures:
- GSTR Filing Deadlines: Businesses must file GSTR-1 and GSTR-3B by March 2018.
- Quarterly vs Monthly Filings: Businesses with a turnover below Rs 1.5 crore are permitted to file GSTR-1 quarterly, while those above this threshold must file monthly.
- Extended Deadlines: Specific due dates for GSTR-1 filings have been established, with detailed timelines for each quarter.
Filing Due Dates for GSTR-1
For Turnover up to Rs. 1.5 crore (Quarterly):
- July-September: December 31, 2017
- October-December: February 15, 2018
- January-March: April 30, 2018
For Turnover above Rs. 1.5 crore (Monthly):
- July to October: December 31, 2017
- November: January 10, 2018
- December: February 10, 2018
- January: March 10, 2018
- February: April 10, 2018
- March: May 10, 2018
Relief for Service Providers
Businesses providing services now enjoy significant relief:
- GST Exemption: Service providers with a turnover of up to Rs 20 lakhs are exempt from GST registration, facilitating ease of doing business. For more information on compliance, refer to our guide on MSME Registration Process in India.
Challenges for the Restaurant Sector
The restaurant industry faces new challenges, particularly with the GST rate cut to 5% but without input tax credit benefits, making it essential for restaurateurs to adapt their pricing strategies.
Other Taxpayer Relief Measures
The council also announced various taxpayer-friendly measures:
- Advance Payments: No GST will be levied on advances received for goods supplied by regular taxpayers.
- Reduced Late Fees: The late fee for delayed GSTR-3B filings has been significantly reduced.
- Credit of Late Fees: Late fees paid for the initial months of GST implementation will be credited back to taxpayers’ accounts.
- Manual Filing for Advance Rulings: Businesses can now manually file for advance rulings to clarify tax positions on uncertain matters.
- Exemptions for Exports: Exports of services to Nepal and Bhutan are exempt from GST, providing an incentive for inter-country trade.
GSTR Filing Extensions
Several GSTR filing deadlines have been revised to support compliance:
- GSTR-4: Revised due date is December 24, 2017.
- GSTR-5 for July to October: New due date is December 11, 2017.
- GSTR-6 for July 2017: Revised to December 31, 2017.
GST Rate Adjustments
The council has made notable reductions in GST rates for various goods:
- Composition Scheme Rate: Set at 1% for manufacturers and traders.
- Rate Reductions: Significant reductions from 28% to 18% for products like shampoos and perfumes, and further reductions for essential items, improving affordability for consumers. For businesses looking to navigate these changes, consider our CompaniesInn - AI-Powered Legal & Business Services to help streamline compliance.
Conclusion
The 23rd GST Council Meeting has ushered in a new phase of tax regulation in India, with emphasis on compliance relief and adjustments in tax rates. Businesses should stay informed about these changes to optimize their compliance strategies and financial planning.
Frequently Asked Questions
What are the key changes to the composition scheme announced in the 23rd GST Council Meeting?
The 23rd GST Council Meeting introduced significant updates to the composition scheme aimed at easing the tax burden on small businesses. The limit for the composition scheme has been raised to Rs 1.5 crore, with potential future extensions to Rs 2 crore. Additionally, a reduced GST rate of 1% has been established for manufacturers and traders. Notably, businesses that supply both goods and services can now opt for this scheme, provided that their service revenue does not exceed Rs 5 lakhs. However, composition dealers are not allowed to conduct inter-state sales and cannot claim input tax credits. These changes are designed to simplify compliance and make it more accessible for small enterprises.
How has the GST Council eased the compliance process for businesses?
To simplify the compliance process, the GST Council has implemented several measures regarding filing deadlines. Businesses with a turnover of up to Rs 1.5 crore are now allowed to file GSTR-1 quarterly, while those with a higher turnover must file monthly. Specific due dates have been set for GSTR-1 filings, including December 31, 2017, for the July-September quarter and various dates in early 2018 for subsequent quarters. Furthermore, the due date for filing GSTR-4 has been extended to December 24, 2017. These measures aim to reduce the administrative burden on businesses and help them stay compliant without overwhelming them with deadlines.
What relief measures have been introduced for service providers?
The 23rd GST Council Meeting brought notable relief for service providers, particularly those with a turnover of up to Rs 20 lakhs, who are now exempt from GST registration. This exemption facilitates easier business operations and reduces regulatory burdens for smaller service providers. Additionally, businesses are encouraged to understand the compliance requirements better, and resources such as the MSME Registration Process guide can assist them in navigating the registration landscape. Overall, these changes are designed to enhance the ease of doing business for service providers and support their growth.
How are restaurant businesses affected by the recent GST changes?
Restaurants are facing new challenges following the GST changes, particularly with the reduction of the GST rate to 5%. While this might seem beneficial, the lack of input tax credit benefits complicates matters. Restaurateurs may need to adjust their pricing strategies to maintain profitability, as they can no longer reclaim taxes paid on inputs used to provide their services. This situation necessitates careful financial planning and operational adjustments in order to sustain business viability in a competitive market.
What taxpayer-friendly measures were introduced in the 23rd GST Council Meeting?
The council announced several taxpayer-friendly measures aimed at easing compliance and reducing penalties. One significant change is that no GST will be levied on advance payments received for goods supplied by regular taxpayers. Additionally, the late fee for delayed GSTR-3B filings has been significantly reduced, and late fees paid during the initial months of GST implementation will be credited back to taxpayers' accounts. Businesses can also now manually file for advance rulings to clarify uncertain tax positions. These measures are designed to create a more supportive environment for taxpayers and facilitate smoother compliance.
What are the new deadlines for GSTR filings after the 23rd GST Council Meeting?
After the 23rd GST Council Meeting, the deadlines for GSTR filings were revised to help businesses comply more easily. For businesses with a turnover up to Rs 1.5 crore, GSTR-1 must be filed quarterly, with the due dates being December 31, 2017, for the July-September quarter, February 15, 2018, for October-December, and April 30, 2018, for January-March. For those with a turnover above Rs 1.5 crore, GSTR-1 must be filed monthly, with specific deadlines set for each month from July 2017 to March 2018. Businesses should be vigilant about these deadlines to avoid any penalties and ensure compliance.
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