38th GST Council Meeting on 18th December 2019 decisions- Highlights and Analysis

GST Rate Changes and Analysis 38th GST Council Meeting

1. To exempt long term lease contracts of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government- Releases Working Capital pressure for entities where Govt stake is held

2. GST Rate @ 28% on Lottery- A long awaited decision!

3. GST rate on Woven and Non-Woven Bags and sacks  of polyethylene   (HS code 3923/6305) increased to 18% from 12%

Other Changes | 38th GST Council Meeting

1. Grievance redressal committee to be setup involving GST Practitioners!-Opportunities for GST Practitioners to be a part of this process and scale up their business!

2. Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2017-18 to be extended to 31.01.2020- Well appreciated move, for the simplified forms are yet to be released!

3. No late fee for delayed filing of GSTR-1!- It has been decided to waive Late fees levied for GSTR-1!!

But does the system ever levy late fees for GSTR-1? The answer is No!!

The levy of late fees for GSTR-1 is completely manual and not system driven! However, GSTR-3B late fees is system calculated!

In other words, the council has decided to waive the manual work and continue with the system driven late fee levy of GSTR-3B!!

In my humble opinion this will not result in improved filing!

Only stopping the business is the only solution (Blocking of E-way Bill) to improve the filing of returns!

4. E-way bill to be blocked if GSTR-1 is not filed for 2 consecutive months- Much better system for improved return filing!

5. Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A. Improvement to 36(4) of CGST Rules! This will surely bring up the compliance level!

6. Due date of filing GST returns for the month of November, 2019 to be extended in respect of a few North Eastern States.-Impact of CAA Bill Protest in North Eastern States

7. The Council also approved various law amendments which will be introduced in Budget 2020.-Wait till Feb’20 till the amendments are out!!

8. A Standard Operating Procedure for tax officers would be issued in respect of action to be taken in cases of non-filing of FORM GSTR 3B returns.- Expected to drive the falling tax collections! This will definitely improve the return filing process!

9. State of UP and UT of J&K made presentation on their effort to improve GST collection, as in the recent past they have shown a healthy growth in compliance- Positive statements from the states!

**********Jai Hind**********

Copy of Press Release Notes issued by the Ministry of Finance can be viewed by clicking at the links provided below:

S. N. Particulars
1. 38th GST Council’s decisions On Rate Changes
2. 38th GST Council Meeting – Presentation on GST Revenue Trends
3. 38th GST Council’s decisions on Law and Procedural changes

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One Comment

  1. VIVEK says:

    waiver of late fee to be given to all taxpayers in respect of all pending FORM GSTR-1 from July 2017 to November 2019, if the same are filed by 10.01.2020.

    E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked.

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