Highlights of 31st GST Council meeting

1. GST 2.0 to be implemented on trial basis in April 2019

New return filing system to be started on a trial basis from April 1, 2019, and will be to be implemented by July 1, 2019

2. E-way bills rules made strict

Taxpayers cannot generate e-way bill if they do not file GST returns for two consecutive tax periods

3. Announcements on Present GST return filing

No late fee for all the GST returns yet to be filed as on 22nd December 2018 up to 31st March 2019, for the months July 2017 up to September 2018.

There is going to be single tax ledger for each Tax head. For example- The three tax ledgers i.e. Credit, Liability and Cash will be merged into one ledger for each tax head such as IGST, SGST/UTGST CGST and Cess.

4. Simplification of Form GSTR-9 & GSTR-9C

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.

If any additional payments are to be made they can be done through the FORM GST DRC-03 in cash.

ITC cannot be availed through FORM GSTR-9 and FORM GSTR-9C.

Verification by a taxpayer who is uploading the reconciliation statement would also be included in FORM GSTR-9C.

5. Due date extensions

The due date for filing of GST Annual Return (GSTR-9) and Reconciliation statement (GSTR-9C) after GST Audit to be extended till 30th June 2019.

GSTR-8 to be filed by e-commerce operators for the period 1st October 2018 to 31st December 2018 will be extended to 31st January 2019.

6. GST Rates rationalised

7. Group of Ministers formed to refer to following issues

A 7 Member Group of Ministers (GOM) has been formed to study this. They will be assisted by the National Institute of Public Finance and Planning (NIPFP) who will share the findings with the GOM.

• Whether or not the tax rates on Lotteries must be 12% and 8% GST Slab on state organised and authorised schemes respectively.
• Threshold limit of exemption for MSMEs.
• To extend scope of composition scheme.

Topics In Discussion

• Changes in the filing of Form RFD-01 A:

RFD-01 is an application for online processing of refund under GST. It is to be e-filed on the GST portal to claim the refund of:

taxes, cess and interest paid in case of zero-rated supplies balance of excess cash paid into the electronic cash ledger
unutilised Input tax credit accumulated in your Electronic Credit Ledger due to Inverted duty structure.

Documents to be annexed to the form can now be uploaded online.

Types of the GST refund that can be applied in this form shall include Excess tax paid, refund by assessment orders, Tax paid on an intra-State supply which is consequently held to be inter-State supply and vice-versa. A detailed procedure is recommended for the same.

Window to complete GST migration process is opened till 31st January 2019. Such taxpayers have time till 31st March 2019 to file the GST returns in GSTR-1 and GSTR-3B for the period July 2017 till February 2019.

Clarifications for case-specific ITC queries to be issued soon: Complex issues such as refund of ITC accumulated on account of inverted duty structure, the time allowed for availing ITC on invoices, disbursal of refunds within the stipulated time, refund of accumulated ITC of compensation cess, etc., will be clarified promptly.

NOTE: The changes mentioned above will come into effect only once notified by CBIC/ GSTN updating the portals.