HIGHLIGHTS OF THE 31st GST COUNCIL MEETING

The GST Council in its 31st Meeting at New Delhi on 22nd December 2018 took forward-looking approach by responding to key industry challenges like rationalization of tax rates, ease of compliances, clarifications on certain vexed issues and referring contentious issues to dedicated group of ministers etc.

This Bulletin highlights the recommendations made by the GST Council in its 31st Council Meeting.

Key recommendations:

1. Electronic Cash Ledger: There would be a single cash ledger for each tax head (i.e. IGST, CGST & SGST) for smooth utilization of cash deposited

2. New return filing system: New return filing system shall be introduced on a trial basis from 1st April 2019 and on mandatory basis from 01st July 2019

3. Due date of various forms has been extended as tabulated below:

GST Form Period Extended due date  GSTR 9 (Annual Return for regular taxpayer)  GSTR 9A (Annual Return for Composition Dealer)  GSTR 9C (Audit Report for taxpayers having aggregate turnover exceeding INR 2 crore) FY 2017-18 30th June 2019  

GSTR 8 (Return for e-commerce operator) October 2018 to December 2018 31st January 2019  GST ITC 04 (Details of goods dispatched/ received to / from job worker or sent from one job worker to another) July 2017 to December 2018 31st March 2019

4. Clarification / changes in Annual Return (Form GSTR-9; GSTR-9A) and Reconciliation Statement (Form GSTR-9C)

 GST Annual Return Forms GSTR-9 & GSTR-9A headings to be amended to specify that the Return needs to be filed in respect of supplies “made during the year” and not “as declared in returns filed during the year”

 Regular taxpayers to file Form GSTR-1 & GSTR-3B before filing Form GSTR-9 & Form GSTR-9C. Similarly, Composition Dealer needs to to file Form GSTR-4 before filing Form GSTR-9A

 HSN code for inward supplies may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies

 Any additional tax payments can be paid through Form GST DRC-03 only in cash

 Input Tax Credit (‘ITC’) cannot be availed through Form GSTR-9 or GSTR-9C

 All invoices relating to the previous financial year would be auto-populated in Table 8A of Form GSTR-9 irrespective of month in which such invoice is reported in Form GSTR-1

 Value of “non-GST supply” shall also include the value of “no supply”

 Verification by taxpayer who is uploading reconciliation statement would be included in Form GSTR-9C

5. ITC related to FY 2017-18: ITC related to FY 2017-18 can be claimed up to due date of filing of Form GSTR-3B for the month of March 2019 subject to specified conditions (to be notified)

6. GST Refund:

(a) A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on pilot basis

(b) Supporting documents / invoices relating to refund claim shall be uploaded on the common portal at the time of filling refund application (GSTN to enable this functionality shortly)

(c) Following refund can also be claimed through Form GST RFD-01A:

 Refund on account of Assessment / Provisional Assessment / Appeal / any other Order;

 Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa;

 Excess payment of tax; and

 Any other refund

7. One more window for completion of migration process will be allowed:

(a) Due date for furnishing the requisite details to the jurisdictional nodal officer by the taxpayer who did not complete Form GST REG-26 filing but received only a Provisional ID till 31st December 2017 shall be extended till 31st January 2019

(b) Due date of filing Forms GSTR-3B & GSTR-1 for the period July 2017 to February 2019 / quarters July 2017 to December 2018 for such taxpayers shall be extended till 31st March 2019

8. Late fee for GST Return:

Late fee shall be waived for all taxpayers where returns (GSTR-1, GSTR-3B and GSTR-4) are filed after 22nd December 2018 but on or before 31st March 2019

9. Restriction on generating E-way bill:

Taxpayers who have not filed Returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN / NIC make available the required functionality

10. Notification of GST (Amendment) Acts:

Changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018, GST (Compensation to States) Amendment Act, 2018 and the corresponding changes in SGST Acts would be notified w.e.f. 1st February 2019

The requisite Notifications / Circulars for implementing the above recommendations of the GST Council shall be issued shortly.

Rationalization of GST rates:

The GST Council recommended changes in GST rates, exemptions and clarifications on levy of GST on certain goods and services.

Select Goods & Services Existing Rates Revised Rates

 Pulleys, transmission shafts and cranks, gear boxes etc.

 Monitors and TVs of up to screen size of 32 inches

 Re-treaded or used pneumatic rubber tyres

 Power banks of lithium ion batteries

 Digital cameras and video camera recorders

 Video game consoles and other games and sports

 GST rate on cinema tickets above Rs 100  from                 28% to 18%

 Parts and accessories for the carriages for disabled persons from 28% to 5%

 Cinema tickets up to Rs 100 

 Third party insurance premium of goods carrying vehicles 18%12%

 Music Books 12% 0%

 Vegetables (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container  Vegetable provisionally preserved but unsuitable in that state for immediate consumption from 5% to 0%

GST on solar power generating plant and other renewable energy plants

 GST @ 5% has been prescribed on renewable energy devices & parts for their manufacture falling under chapter 84, 85 or 94. Other goods or services used in these plants shall attract applicable GST

 In case where specified goods attracting 5% GST are supplied along with services of construction etc. and other goods for solar power plant:

 70% of the gross value shall be deemed as the value of supply of goods attracting 5% rate

 remaining 30% of the aggregate value of such EPC contract shall be deemed to be taxable service attracting standard GST rate

Please Click Here to read Press Release on rate changes and clarification in goods.

Please Click Here to read Press Release on rate changes, rationalization/ clarification in services.

In-principle approval given for certain GST law amendments:

The GST Council accorded in-principle approval to the following amendments in the GST Acts:

(a) Constitution of a Centralized Appellate Authority for Advance Ruling (‘AAAR’) to deal with cases of conflicting decisions by two or more State AAAR on the same issue