21st GST Council MeetingExport Relief & 40+ Rate Reductions
The 21st meeting addressed the mounting export crisis with fast-tracked refunds and an e-wallet proposal, while cutting rates on 40+ items spanning food, textiles, and ayurvedic medicines to correct inverted duty anomalies.
Key Decisions & Outcomes
Rate Reduction on 40+ Items
Rates reduced on over 40 goods and services including namkeen, unbranded ayurvedic medicines, man-made fabric, job work on textiles, and stationary items to address inverted duty concerns.
Export Refund Fast-Tracking
Decision to expedite IGST refunds for exporters facing severe working capital issues. Timeline set for processing pending refund claims within specified deadlines.
E-Wallet for Exporters (Proposed)
Concept of an e-wallet scheme discussed to provide notional credit to exporters for payment of GST on inputs, eliminating the need for upfront tax payment and subsequent refund claims.
Composition Scheme Enhancement
Composition scheme limit retained at ₹1 crore. Discussion on allowing inter-state supply under composition scheme and rate rationalization for composition taxpayers.
Return Filing Date Extensions
Extended deadlines for GSTR-1, GSTR-2, and GSTR-3 for July and August 2017 to address GSTN portal capacity issues and taxpayer adaptation challenges.
Restaurant GST Simplification
Discussion on simplifying GST for restaurants — proposal to have uniform 5% rate without ITC for all restaurants (later implemented in 23rd meeting).
Notable Rate Changes
| Item | Previous Rate | Revised Rate |
|---|---|---|
| Namkeen (branded & unbranded) | 12% | 5% |
| Unbranded ayurvedic medicines | 12% | 5% |
| Sliced/dried mango | 12% | 5% |
| Khakra, plain chapati | 12% | 5% |
| Job work on textiles | 18% | 5% |
| Idli/dosa batter | 12% | 5% |
| Synthetic filament yarn | 18% | 12% |
| E-waste | 28% | 5% |
Frequently Asked Questions
What was the 21st GST Council Meeting about?
The 21st meeting held on September 9, 2017 in Hyderabad focused on providing relief to exporters facing IGST refund delays, reducing rates on 40+ items to address inverted duty structures, discussing the e-wallet concept for exporters, and extending return filing deadlines due to GSTN portal issues.
What is the e-wallet scheme proposed for exporters?
The e-wallet scheme was a concept to provide notional credit (advance IGST credit) to exporters so they wouldn't need to pay GST upfront on inputs meant for export production. This would prevent working capital blockage. The scheme was discussed but not immediately implemented; instead, other interim relief measures were provided.
How many items had rate reductions in this meeting?
Over 40 goods and services received rate reductions. Key items included food products (namkeen, khakra, idli batter), textiles (job work rates, synthetic yarn), medicines (unbranded ayurvedic), and e-waste. Most reductions moved items from 12%/18% to 5% slab.
Why were return filing deadlines extended?
Deadlines were extended because the GSTN portal was experiencing heavy load and technical issues during the initial months of GST implementation. Many taxpayers and tax professionals were still adapting to the new system, and the portal capacity was being enhanced progressively.
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