Pro and Cons of Recommendations made during 31 Meeting of the GST Council on 22 Dec, 2018
Complete Analysis has been made of Recommendation in laymen Language and Presented in 3 Part-
|Proposed Change||Present Scenario||Impact|
|There would be a single cash ledger for each tax head.||Currently there are multiple heads like Tax, Interest,Fees,Penalty,Other.||• It will create less confusion among taxpayers.
• Identification of Correct head is a major Problem for some Small Taxpayers.
Late fees for late returns is sometimes shown in Penalty head leads to creation of Wrong challan and blocking of Working Capital.
|A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities.||Currently Refund is given by both the Authority. CGST part is refunded by CG and SGST part by State Govt.||• It will ease the Process of Refund, As for refund same process have to be followed before both the Authorities.
• Single Window for Refund will remove the Cascading Process.
|The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.||Currently 2 returns are filled GSTR1 & GSTR 3B.||• Govt is in talk to Introduce Single Return for a Period in place of Several returns creating a unnecessary burden on Professionals & Wastage of Productive Hours.|
|ITC cannot be availed through FORM GSTR-9 &FORM GSTR-9C.||There was confusion that if ITC not taken up to specified date can it be claimed in Annual Return?||Govt has made Clarified that No ITC can be claimed in Annual Return.|
|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.||Currently last date to claim ITC pertaining to FY 17-18 was due date of Furnishing of GSTR3B for the month of SEP 2018 i.e. 20 OCT, 2018.||Council has extended due date to Claim ITC till furnishing of FORM GSTR-3B for the month of March, 2019.
Subject to specified conditions.(Let’s See what condition are to be complied for claiming ITC)
|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||• GSTR 8 is to be filled by E-Commerce Operator till 10th of Next month.
• Sec 52 talks about TCS provision which has been made Effect from 01 OCT 2018.
|• Due date has been extended as GSTN has not provided the portal to file GSTR 8.|
|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.||• Late fees of Rs 50 or Rs 20 Per /Day is charged for late filling of GSTR 3B.
• Previously Late fees is not charged on GSTR 1 but as per notification issued by CBEC returns after OCT will be liable to late Fees but Portal is not showing late fees for GSTR 1.
|• Here Govt has played a game with Taxpayers.
• Late fees for only those taxpayers will be waived who will file after 22-12-2018.
• What about the taxpayers who have already filled their returns with late fees.
• Less than .1% taxpayers will be covered under this as mostly taxpayers have filled their return with late fees.
|Taxpayers who have not filed the returns for two consecutive tax periods shall be Restricted from generating e-way bills.||Currently there no Trail between Filling of return and Generation of E way bill.||• CBEC is going to create a functionality which will barred the taxpayers from generation of E-waybill if they have not filled their return for 2 Consecutive period.|