Dr. Sanjiv Agarwal, FCA, FCS
The Union Budget 2019-20 / Finance Bill, 2019, which was presented in Parliament on 5th July, 2019 has been passed by the Parliament now and since enacted on 1st August, 2019. The provisions relating to changes in CGST Act, 2017 in sections 10, 22, 25, 31A, 39, 49, 50, 52, 54, 171 etc. shall now become part of Act and become applicable from the date of enactment (01.08.2019).
The 36th meeting of the GST Council was held on 27th July, 2017 where in major decisions on e-vehicles were taken for which Notifications have been issued on 31st July, 2019 (Notification No. 12 and 13). These are effective from 1st August, 2019. GST rate on electric vehicles has been reduced from 12% to 5% while for chargers / charging stations from 18% to 5%. Hiring of electric buses (> 12 passenger capacity) by local authorities have been exempted. The last dates for filing Form GST CMP-2 and Form GST CMP-8 have been extended to 30.09.2019 and 31.08.2019 respectively.
GSTN has issued a User Manual and FAQ’s on GST new returns offline tool on 29th July, 2019 which is a guide on how to use new return offline tool (Beta). It contains guidance on how to download and install tool, Form ANX-1 and ANX-2, process flow, how to prepare annexures and functionalities not available in trial version etc.
The first even audit report on GST implementation has been released by CAG of India recently. While it states GST to be a land mark achievement, it makes a statement that one significant area where full potential of GST roll out has not been achieved is rollout of ‘simplified tax compliance regime’. It also reveals that growth of indirect taxes has slowed down to 5.80% in 2017-18 as contend to 21.33% in 2016-17. The payment module, despite being in operation since 1st July 2017, was fraught with operational deficiencies. System validations were not aligned to the provisions of the GST Acts and Rules. While it was expected that compliance would improve as the system would stabilize, all returns being filed showed a declining trend of filing from April, 2018 to December, 2018.
31st August, 2019 is the last date for GST audits and is it unlikely that it may be extended further.
♦ Recommendations of 36th GST Council meeting
The 36th GST Council Meeting was held on 27.07.2019, via Video Conference wherein following key decisions were taken:
A. GST rate related changes on supply of goods and services
(i) The GST rate on all electric vehicles be reduced from 12% to 5%.
(ii) The GST rate on charger or charging stations for Electric vehicles be reduced from 18% to 5%.
(iii) Hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities be exempted from GST.
(These changes shall become effective from 1st August, 2019.)
B. Changes in GST law:
(i) Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 (by exclusive supplier of services), to be extended from 31.07.2019 to 30.09.2019.
(ii) The last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the quarter April, 2019 to June, 2019 (by taxpayers under composition scheme), to be extended from 31.07.2019 to 31.08.2019.
♦ GST on amounts charged by Residential Welfare Associations (RWA’s)
> Maintenance charges paid by residents to RWA’s in a housing scheme are exempt from GST if the amount / charge / contribution does not exceed the following amounts :
√ Upto 25.01.2018 – 5000 pm
√ e.f. 25.01.2018 – Rs. 7500 pm
> CBIC has clarified that :
√ Exemption is available subject to this limit per apartment / flat and not per person.
√ Where the amount per month exceeds the limit of Rs. 7500 presently applicable, the entire amount shall be taxable, i.e. including the first Rs. 7500/-.
♦ Extension in due date of CMP-08
> CBIC has extended due date of Form GST CMP-08 for the quarter April – June 2019 till 31.08.2019.
♦ Retail outlets in the departure area of an international airport entitled to claim refund
> Retail outlets established in the departure area of an international airport, beyond the immigration counters, making tax free supply of goods to an outgoing international tourist, shall be entitled to claim refund of applicable central tax paid on inward supply of such goods, subject to the conditions specified in rule 95A of the Central Goods and Services Tax Rules, 2017.
♦ Offline Tool of New GST Returns for Trial Run
> GST New Return Offline Tool has been released on trial basis on the GST Portal (under Download section) for familiarization of stakeholders with tool’s functionalities. This tool comprising of :
√ Form GST ANX-1,
√ Form GST ANX-2 (with built-in matching tool), and
√ Purchase Register template (to import data of purchase register for matching).
> Documents/ data uploaded during trial run shall not create any liability in GST. Taxpayers will continue to report/ pay their GST liability in Form GSTR-I/ GSTR-3B during this period.
> After the trial period is over, the data created/entered in GST ANX-1/2 on the GST Portal will be fully erased.
> Users may give their feedback/suggestions.
♦ New Functionalities on GST Portal
> Form GST ITC-04
√ Form GST ITC – 04 under GST is a form to be furnished by registered manufacturers, showing the details of inputs or capital goods dispatched or received from a job worker in a particular quarter.
√ Old format of GST ITC-04 had been substituted with new one by CBIC vide Notification No. 39/2018 – Central Tax, dated 04-09-2018.
√ Such amended format of GST ITC-04, is now available on the GST portal.
> Filing of Application for Cancellation of Registration and filing of clarifications by GSTPs:
√ Normal/Composition/ SEZ Developer/ SEZ Unit/ Casual Taxable Person/ Input Service Distributor/ Non Resident Taxable Person users can now engage a GST Practitioner for Filing of Application for Cancellation of Registration.
√ United Nations Body/Embassy/ONP users can now select a GST Practitioner for filing clarifications on issues raised by a tax official on their registration application.
√ The GSTP can save draft of the application. The taxpayer/ users and GSTP’s would be able to work on the drafts of the application, saved by either of them.
♦ Due dates of various filings from 15.08.2019 to 31.08.2019
|Return||Purpose||Period||To be filed by|
|GSTR-3B||Payment of tax||July, 2019||20.08.2019
|GSTR-5||Details of outward taxable supplies and tax payable by Non Resident Taxable person (monthly)||July, 2019||20.08.2019|
|GSTR-5A||Details of outward taxable supplies and tax payable by OIDAR (monthly)||July, 2019||20.08.2019|
|GST CMP-08||Details of self-assessed tax payable for a given quarter in case of a composition dealer||April, 2019 to June, 2019||31.08.2019|
|GSTR-9A||Annual Return for Composition Tax Payer||2017-2018||31.08.2019|
|ITC-04||Details of goods or capital goods sent to job worker and received back||July, 2017 to June, 2019||31.08.2019|
|GSTR-7||Details of TDS deducted, amount of TDS paid and payable and any refund of TDS claimed||October, 2018 to July, 2019||31.08.2019|
|RFD-10||Claim of refund of any tax, interest, penalty, fees or any other amount paid, other than refund of integrated tax paid on goods exported out of India||Jan,2018 to March, 2018||31th July, 2019 to 30th Sep,2019|