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Major decision taken in 35th GST Council Meeting

The all-powered GST Council has taken several important decisions in its 35th meeting. These decisions are as follows:

  1. Extension of due date for filing first GST Annual Return & Reconciliation Statement

On account of difficulties faced by taxpayers in furnishing the annual returns in form GSTR-9, GSTR-9A & reconciliation statement in GSTR-9C, the due date for furnishing these returns/ reconciliation statements to be extended till August 31, 2019.

  2. Implementation of GST Returns for small taxpayers (with turnover of up to Rs. 5 crores)

Forms Required to be filed Description of Form July to September, 2019 October to December, 2019
GST ANX-1 Annexure of outward and inward supplies that require payment of GST under reverse charge Optional and can be filed on a trial basis Mandatory to be filed on a quarterly basis, due in January, 2020
GST ANX-2 Annexure of Inward Supplies No action shall be allowed (View only facility)
GSTR-1 and GSTR-3B Statement of output supplies and monthly return Mandatory filing is required Not required to be filed
PMT-08 Payment of self-assessed tax Not required to be filed Mandatory to be filed
GST-RET-01 Quarterly return For this Quarter, due in January, 2020

  3. Implementation of GST Returns for large taxpayers (with turnover of more than Rs. 5 crores)

Forms Required to be filed Description of Form July to September, 2019 October to December, 2019
GST ANX-1 Annexure of outward and inward supplies that require payment of GST under reverse charge Optional and can be filed on a trial basis Mandatory to be filed on a monthly basis
GST ANX-2 Annexure of Inward Supplies No action shall be allowed (View only facility)
GSTR-1 Statement of output supplies Mandatory filing is required Mandatory to be filed on monthly basis (it shall not be required from December 2019)
GSTR-3B Monthly return Mandatory filing is required Mandatory to be filed on monthly basis (it shall not be required from December 2019)
PMT-08 Payment of self-assessed tax Not required to be filed Mandatory to be filed
GST-RET-01 Monthly return Mandatory to be filed in January, 2020

It may be noted that invoices etc. can be uploaded in form GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019 onwards.

  4. Extension to opt for New 6% Presumptive Taxation Scheme for service providers

A new scheme was introduced [vide Notification No. 2/2019 – Central Tax (Rate)] for the eligible service providers to opt for presumptive taxation scheme in which they are required to pay GST at the rate of 6%. This scheme has prescribed that the existing service provides have to opt for this scheme by filing Form GST CMP-02 by April 30, 2019. The Council has extended the last date for filing of such form from April 30, 2019 to July 31, 2019.

  5. Restriction imposed on generating e-way bill from August 21, 2019

With effect from June 21, 2019 following persons were barred from generating an e-way bill online, whether as a supplier or a recipient

   a) Compositions Dealers, who have not furnished the returns for 2 consecutive tax periods; and

   b) Other tax payers, who have not furnished the returns for a consecutive period of 2 months

The effective date of such provision has been shifted from June 21, 2019 to August 21, 2019.

  6. Extension to file form GST ITC-04 in respect of goods sent to or received back from job worker

To provide sufficient time to the trade andindustry to furnish the declaration in form GST ITC-04, relating to the inputs and capital goods sent to or received from a job worker, the due date for furnishing the said form for the period July, 2017 to June, 2019 has been extended till August 31, 2019

  7. Extension of the tenure of National Anti-Profiteering Authority by 2 years

In order to ensure that the end consumers enjoys the benefit of reduced tax rates on goods and services under GST the Anti-Profiteering Authority was constituted. The GST Council has extended the tenure of National Anti-Profiteering Authority by another 2 years.

  8. Establishing GST Appellate tribunal in various States.

The Council has also taken decision regarding the location of the State and the Area Benches for the Goods and Services Tax Appellate Tribunal (GSTAT) for various States and the Union Territories with legislature. It has been decided to have a common State Bench for the States of Sikkim, Nagaland, Manipur and Arunachal Pradesh.

  9. Introduction of e-invoicing System to be implemented from January 2020.

In order to curb the practice of issuing the fake invoice by a person and allowing the other person to take the credit of input tax on the basis of such invoice, the Govt. has decided to introduce e-invoicing system in a phase-wise manner for B2B transactions. This System shall also help tax authorities in combating the menace of tax evasion The Phase 1 is proposed to be voluntary and it shall be rolled out from January 2020.

10. Decisions related to changes in rates of Goods and Services

  a) Electric Vehicles: On issues relating to GST concessions on electric vehicle, charger, and hiring of an electric vehicle, the Council recommended that the issue shall be examined in detail by the Fitment Committee and shall be brought before the Council in the next meeting.

  b) Solar Power Generating Systems and Wind Turbines: In terms of the order of the Delhi High Court, the GST Council directed that the issue relating to the valuation of goods and services in a solar power generating system and wind turbine be placed before next Fitment Committee. The recommendations of the Fitment Committee would be placed before the next GST Council meeting.

  c) Lottery: Group of Ministers submitted a report to the Council on the matter of taxability of lotteries. After deliberations on various issues on the rate of lottery, the Council recommended that certain issues relating to taxation (rates and destination principle) would require the legal opinion of Learned Attorney General.

Author: Niranjan Reddy

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