The GST Council in its 38th meeting held on 18th December 2019 at New Delhi discussed and approved: (i) certain amendments in the GST Law and procedures; and (ii) Changes related to GST Rates
Below mentioned is the gist of announcements made by the GST Council categorised into below sections:
1. GST Revenue Trends – Brief Insight
2. Changes in GST Rates
3. Law and Procedure related Changes
1. GST Revenue Trends – Presentation made at the GST Council
A presentation was made to the 38th GST Council on the issue of revenue, GST rate structure and compensation needs of the States. Before the presentation, the Convenor of GoM on revenue augmentation Sh. Sushil Kumar Modi, Dy CM (Bihar) made opening remarks about the revenue position and future roadmap.
The presentation made thereafter was based on discussions in the Committee of officers of State and Centre on revenue augmentation.
GST Council discussed on issues such as measures for encouraging voluntary compliance, expanding tax base, measures to improve return filing and tax collection and rate rationalisation. Other issues like automation measures such as e-invoice, new return system, QR code on bills were also discussed.
2. Changes in GST Rates proposed in 38th GST Council Meeting
| Sl. No. | Recommendation | Date effective from |
| 1 | Exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. (Present exemption is available to an entity having 50% or more ownership of CG/SG) | 1st January 2020 |
| 2 | single rate of GST @ 28% on both State run and State authorized lottery | 1st March 2020 |
| 3 | Woven and Non-Woven Bags and sacks of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods (HS Code 3923/6305) including Flexible Intermediate Bulk Containers (FIBC) at a uniform rate of 18% | 1st January 2020 |
3. Changes related to GST Laws and Procedure as proposed in 38th GST Council Meeting
| Sl. No. | Proposal Category |
| 1 | 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 (earlier date for filing the said returns was 31.12.2019) |
| 2 | 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 % of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A. (Earlier the said restriction was 20% of eligible Invoices) |
| 3 | No late fee in respect of all pending FORM GSTR-1 from July 17 to November 19, if the same are filed by 10.01.2020 |
| 4 | E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked |
| 5 | To check the menace of fake invoices, suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations |
| 6 | 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 |
| The effect of the above recommendations to be given through relevant Circulars/ Notifications. | |
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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