GST Updates - 31st Meeting

The 31^st meeting of Goods and Service Tax (‘GST’) Council took place at New Delhi on Saturday, 22^nd December 2018. The Council while announcing several reliefs and measures for the taxpayers has slashed the GST rates on various goods and services. Simplified the formats of Annual Return and GST Audit reports. An epitome of these decisions along with certain recommendations is as follows:

1. There would be a single cash ledger for each tax head.

2. The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.

3. The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till 30.06.2019.

4. Due date of GSTR 8 of GST TCS is extended till 31^st January 2019 for the period October to December 2018 and due date of GST ITC 04 for Job work detail shall be extended till 31^st March 2019 for the period July to September 2018.

5. ITC related to financial year 2017-18 can be availed up to GSTR 3B for the month of March 2019.

6. Late fees have been waived off for GSTR 1, GSTR 3B and GSTR 4 from July 2017 to September 2018 in case the same has been furnished between 22^nd December 2018 to 31^st March 2019.

7. Taxpayers who do not file their two consecutive returns would be restricted to generate e-way bills.

8. Changes made by CGST Amendment Act, 2018, IGST Amendment Act 2018, UTGST Amendment Act 2018 and GST compensation cess Amendment Act 2018 and corresponding changes in SGST Act would be notified w.e.f. 1^st February 2019.

9. Recommended certain changes in the formats/instructions for preparing Annual return and reconciliation statement are mentioned below:                                                                                                                                                                                                                 
   • Details in form 9 or 9A as applicable would be prepared in respect to the supplies “made during the year”. Earlier the form required to fill the details of supplies declared in the respective returns during the year.
   • It is mandatory to file GSTR 1 and GSTR 3B before filing GSTR 9 (Annual return) or GSTR 9C (GST Audit), simultaneously GSTR 4 (Composition dealer) has to be filed before GSTR 9A.
   • Any additional liability can be paid through GST DRC 03 in cash only.
   • ITC can not be availed through GSTR 9 or 9C.
   • All invoices pertaining to previous financial year would be auto populated in GSTR 2A and column no 8A of annual return irrespective of the month in which such invoices were reported.
   • Value of “non-GST supply” shall include value of “no supply”.

10. Recommendation of changes related to Refund:                                                                                                                                             
    • All supporting documents related to refund application in Form GSTRFD 01A shall be uploaded electronically at the common portal to obviate the need for a taxpayer to physically visit a tax officer.
    • Refund can be filed for wrong head payment (for instance IGST instead of CGST and SGST) or any excess payment of tax in for RFD 01A.
    • Rejection of the refund application filed online in case of non-submission of physical documents to the jurisdictional officer within 60 days and extended period of 15 days.
    • 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.
    • Clarifications shall be issued on certain refund related matters like refund of inverted duty structure, disbursal of refund within stipulated time, time allowed for availing of ITC etc.

11. One more window for completion of migration process is being allowed. Due date of migration extended till 31^st January 2019 and filing GSTR 3B and GSTR 1 shall be extended till 31^st March 2019.

12. GST council gave in principal approval on the following amendments:                                                                                                     
    1. Creation of centralized AAAR to deal the cases of conflicting decisions of two or more state AAAR on the same issues.
    2. Amendment of Section 50 of CGST act to provide that interest would be leviable on the amount payable through cash only after deduction of ITC available.

13. GST rates has been recommended to be reduced on 33 goods such as Monitor, TV, Digital Camera from 28% to 18%, Corks from 18% to 12%, Marble Rubble 18% to 5%, Music Books from 12% to NIL etc. GST on solar power generating plant and other renewable energy plants has been revised.

14. Certain other reduction in GST rates and Exemptions on services has been made such as reduction of GST rate on cinema tickets above Rs. 100 is to be reduced from 28% to 18%. Also, changes shall be made on insurance premium of goods carrying vehicles, Services supplied by banks to Basic Saving Bank Deposit and air travel by pilgrims etc.

15. GST council has approved the proposal to form GoM (7 Member group of Ministers) to study the revenue trend and referred the following certain issues to the committees/GoM:                                                                                                                                                 
    • Extending the Composition scheme to small service providers. The rate of tax and threshold limit to be proposed to Law Committee and Fitment Committee.
    • Tax rate on lotteries to Committee of States.
    • Taxation of residential property in real estate sector to Law Committee and Fitment Committee.
    • Threshold limit of exemption under GST regime to GoM on MSMEs.