Key Decisions of 31st GST Council Meeting

By | December 22, 2018
(Last Updated On: December 23, 2018)

Key Decisions of 31st GST Council Meeting

31st GST council Meeting was held on 22.12.2018 and following are the key decisions taken

Electronic Cash Ledger

There would be a single cash ledger for each tax head. The modalities for implementation would be finalised in consultation with GSTN and the Accounting authorities.

Changes in GST Rate on Goods

Refer GST Rate changes : Recommendations made during 31st Meeting of GST Council

Changes in GST Rate on Services

Refer Changes in GST Rate on Services : by 31st GST Council Meeting

GST Refund

  • 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. The modalities for the same shall be finalized shortly.’
  • All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly
  • The following types of refunds shallalso be made available throughFORM 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.
  • In case of applications for refund in FORM GST RFD-01A(except those relating to refund of excess balance in the cash ledger)which are generated on the common portal before the roll out of the functionality described in point (10) above, and which have not been submitted in the jurisdictional tax office within 60 days of the generation of ARN, the claimants shall be sent communications on their registered email ids containing information on where to submit the said refund applications. If the applications are not submitted within 15 days of the date of the email, the said refund applications shall be summarily rejected, and the debited amount, if any, shall be re-credited to the electronic credit ledger of the claimant.
  • Clarifications shall be issued on certain refund related matters like
    • refund of ITC accumulated on account of inverted duty structure,
    • disbursal of refunds within the stipulated time,
    • time allowed for availment of ITC on invoices,
    • refund of accumulated ITC of compensation cess etc.

Input Tax Credit

ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.

GST Migration Process

One more window for completion of migration process is being allowed. The due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019/quarters July, 2017 to December, 2018 by such taxpayers shall be extended till 31.03.2019.

Late Fees Waiver

Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.

No Generation of Eway Bill if GST returns not filed

Taxpayers who have not filed the 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.

New GST Returns Filing System

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

GST Annual Returns Date

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.

Changes in GST Annual Returns

The following clarificatory changes, inter-alia, shall be carried out in the formats/instructions according to which the annual return / reconciliation statement is to be submitted by the taxpayers:

  1. Amendment of headings in the forms to specify that the return in FORM GSTR-9 &FORM GSTR-9A would be in respect of supplies etc. ‘made during the year’ and not ‘as declared in returns filed during the year’;
  2. All returns in FORM GSTR-1&FORM GSTR-3B have to be filed before filing of FORM GSTR-9 FORM GSTR-9C;
  3. All returns in FORM GSTR-4 have to be filed before filing of FORM GSTR-9A;
  4. HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies;
  5. Additional payments, if any, required to be paid can be done through FORM GST DRC-03 only in cash;
  6. ITC cannot be availed through FORM GSTR-9 FORM GSTR-9C;
  7. All invoices pertaining to previous FY (irrespective of month in which such invoice is reported in FORM GSTR-1) would be auto-populated in Table 8A of FORM GSTR-9;
  8. Value of “non-GST supply” shall also include the value of “no supply” and may be reported in Table 5D, 5E and 5F of FORM GSTR-9;
  9. Verification by taxpayer who is uploading reconciliation statement would be included in FORM GSTR-9C.

GST TCS Return Date

The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till 31.01.2019.

GST ITC 4 Return Date

The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.

Changes in GST Act

Changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.

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

New Committees set up for Changes in certain issues

The GST Council in its 31st meeting held today at New Delhi decided to refer the following issues to Committees / GoM indicated against them:

  1. Extending the Composition scheme to small service providers. The rate of tax and threshold limit to be proposed – Law Committee and Fitment Committee.
  2. Tax rate on lotteries – Committee of States.
  3. Taxation of residential property in real estate sector – Law Committee and Fitment Committee.
  4. Threshold limit of exemption under GST regime – GoM on MSMEs.

2.         GST council in its next meeting (32st GST Council Meeting)  would take a view on the above issues in its next meeting.

Authority of Advance Ruling

The GST Council in its 31st meeting held at New Delhi gave in principle approval to the amendments in the GST Acts for Creation of a Centralised Appellate Authority for Advance Ruling (AAAR) to deal withcases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue.

The above recommendations of the Council will be made effective only after the necessary amendments in the GST Acts are carried out.

Interest on Net Tax Liability

The GST Council in its 31st meeting held at New Delhi gave in principle approval to the amendments in the GST Acts for Amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger.

The above recommendations of the Council will be made effective only after the necessary amendments in the GST Acts are carried out.

Reverse Charge Mechanism

  • Security services (supply of security personnel) provided to a registered person,except Government Departments which have taken registration for TDS and entities registered under composition scheme, shall be put under RCM.
  • Services provided by unregistered Business Facilitator (BF) to a bank and agent of Business correspondent (BC) toa BC shall be put under RCM.
  • Parliament and State legislatures shall be extended the same tax treatment with regard to payment of tax under RCM (reverse charge mechanism)as available to Central and State Governments.

Read All 31st GST Council Meeting Decisions

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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