The 39th GST Council Meeting was held on 14th March 2020 in New Delhi where in key decisions were taken.

Key Outcomes of 39th GST Council Meeting are as follows 

• Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended retrospectively).

• Where registrations have been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filled up to 30.06.2020 (extension of period of application as one-time measure to facilitate those who want to conduct business).

• Relaxation to MSMEs from furnishing of Reconciliation Statement in FORM GSTR-9C, for the financial year 2018-19, for taxpayers having aggregate turnover below Rs. 5 crores;

• Due date for filing the Annual return and the Reconciliation Statement for financial year 2018-19 to be extended to 30.06.2020; and

         Read Also : 38th GST Council meeting decisions

• Late fees not to be levied for delayed filing of the Annual return and the Reconciliation Statement for financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.

• A new facility called ‘Know Your Supplier’ to be introduced so as to enable every registered person to have some basic information about the suppliers with whom the conduct or propose to conduct business.

• The requirement of furnishing FORM GSTR-1 for 2019-20 to be waived for taxpayers who could not opt for availing the option of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02.

• A special procedure is being prescribed for registered persons who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 and are undergoing the corporate insolvency resolution process, so as to enable them to comply with the provisions of GST Laws during the CIRP period.

• Extension of due dates for FORM GSTR-3B for the month of July, 2019 to January, 2020 till 24 March, 2020 for registered persons having principal place of business in the Union territory of Ladakh. Similar extension is also recommended for FORM GSTR-1 & FORM GSTR-7.

• Bunching of refund claims allowed across financial years to facilitate exporters

• Certain class of registered persons (insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.) to be exempted from issuing e-invoices or capturing dynamic QR code;

• The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020

• Continuation of existing system of furnishing FORM GSTR-1 & FORM GSTR-3B till September, 2020

• Seeking information return from Banks;

• To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person.

The post Outcome of 39th GST Council Meeting appeared first on GST Platform.

Grievance redressal committee will be constituted at state and zonal level to address the complains of taxpayers. This will comprise of CGST and SGST Officers along with representative of trade and industry and GST Practitioner, GSTN officers etc .

The due date for filing GST annual return in Form GSTR-9  and annual reconciliation statement in Form GSTR-9C for FY 17-18 has been extended till 31.01.2020 from 31.12.2019. For FY the due date for the same is 31.03.2020. The GST annual return and GST reconciliation statement is optional below 2 Crores.

Various measures will be taken to improve the filing of GSTR1 – Details of outward supplies :

A) The late fee would be waived of for filing GSTR1 from July 2017 to November 2019, if all the pending returns in form GSTR1 has been filed till 10.01.2020. After that late fees will be applicable for filing GSTR1.

B) Blocking of waybill to be implemented as per WAYBILL rules for not filing GSTR1 for two consecutive tax periods. Earlier, non-filing of GSTR3B was implemented for blocking of waybill. Thus , both GSTR1 and GSTR3B must be filed for previous two tax periods consecutively to generate waybill on the portal.

Input Tax Credit to the recipient in respect of invoices or debit notes which were not uploaded in GSTR2A shall be restricted to 10% of invoices that re uploaded. Currently, it is capped at 20% for such invoices.

Read Also : New ITC Rule 36(4) 

Read Also : Types of Registration Forms

The tax official will not allow the claim of input tax credit in case of fake invoices. The official can now block the input tax credit if it is claimed on the basis of fake invoices. For this suitable action will be taken by the tax officials for blocking fraudulently claimed itc on fake invoices.

A detailed operating procedure will be prescribed for the tax officers to take action against the non-filers of GSTR3B and suitable penalty and interest will be imposed on them  . This step will be in addition to blocking of waybill . In order to increase the compliance and increase the revenue CBIC will take these steps and laid down the procedures.

The due date for filing GST returns in Form GSTR3B , GSTR1 , GSTR7, GSTR8 for some of the districts of North East will be EXTENDED for November 2019 due to recent disturbances. Due date for filing GSTR1 and GSTR3B will be extended till 31.12.2019 and GSTR 7 and GSTR8 till 25.12.2019

The GST Council also approved many law related changes which will be brought in by amendments in GST Act in Union Budget 2020.

The GST Council also levied a single rate of 28% of Lotteries from 01.03.2020 for both categories such as State and Private Lotteries.

The GST Rate on woven and Non-Woven and sacks of polyethylene or polypropylene or the like having HSN code 3923/6305 has been increased from 12% to 18%.It shall be effective from 01.01.2020.

The GST Council also exempts the upfront amount payable for long term lease for industrial entity having 20% or more ownership of Central or State Government. Currently this limit is 50% . This change will be effective from 01.01.2020.

No waiver of late fees for filing GSTR-3B belatedly. Also,l there is no waiver for filing late GSTR-10 , Final returns which is required to filed upon cancellation of GST Number. The return must be filed within 90 days of cancellation order.

CLICK HERE TO DOWNLOAD THE PRESS RELEASE 

The post GST COUNCIL MEETING DECISIONS appeared first on GST Platform.

GST COUNCIL MEETING AGENDA 

GSTR9 AND GSTR9C DATE EXTENSION

The GST Council to take big decisions regarding date extension for filing GST Annual return in Form GSTR 9 and GST Audit reconciliation statement in Form GSTR- 9C for FY 2017-18.The filing for annual and reconciliation statement is due on 31^st December 2019.

CBIC has recently simplified the forms for GSTR9 and GSTR9C but the simplified forms are not available till date. As per GST Portal, the expected date for releasing the new and simplified forms is 21^st December 2019. Keeping this it is highly expected that the council may take decision on extension of the filing for extra month till 31.01.2020.

GST WAYBILL RULES TWEAKING 

The GST Council meeting is also expected to extend the blocking rule of waybill for non-filing of GSTR1. Presently, only the returns in GSTR3B is taken into consideration for blocking of waybill. If the returns in GSTR3B for two consecutive tax periods has not been filed then gst portal blocks such GSTIN for generating waybill. Now, to improve the compliance and ensure filing of GSTR1 , it may be decided to extend the blocking for GSTR1 also.

If GSTR1 or GSTR3B for two consecutive were not filed the ewaybill facility will be blocked for such GST numbers.

GST CREDIT BLOCKING 

The GST Council is also expected to take a call regarding, blocking of Input Tax Credit by the Tax Official. This decision may be taken on the backdrop of fake claims of Input Tax credit in GST on the basis of fake invoices. Already 25 states are using this method to plug the claims of Input Tax Credit on the basis of invoices that are not valid.

It may also be decided that all the past claims which are not valid may be reversed in the Electronic credit ledger in GST Portal . The reversal of Itc has to be done along with interest @ 24% as per the provisions of Section 50 of CGST Act .

GST CREDIT TO BE CAPPED @ 10%

Another big change on the agenda of GST Council ahead of crucial meeting on 18.12.2019 is regarding the capping of Input Tax Credit on invoices that has not been uploaded by the supplier.

Recently, CGST Rules were amended to insert new provisions in Rule36 (4) , which says that the input tax credit in respect of invoices not uploaded will be capped at a maximum of 20% of invoices that has been uploaded. To understand this rule you may read this article also.

Now the decision may be taken to reduce the percent of 20% to 10% of valid and eligible invoices for which credit will be allowed in respect of invoices not uploaded.

GST RETURN DUE DATE EXTENSION 

GST council meeting scheduled to held tomorrow may also extend the due date for filing GST Returns in form GSTR3B , GSTR1 , GSTR7 ,. GSTTR8 for North Eastern states due to disturbances in these areas after passing of Citizenship Amendment Act. The due date for filing GSTR3B for November 2019 may be extended from 20.12.2019 to 31.12.2019.

For filing GSTR1 monthly for November 2019, due date may be extended from 11.12.2019 to 31.12.2019

For filing GSTR7 and GSTR8 for November 2019 ,  due date may be extended from 10.12.2019 to 25.12.2019.

GST AMENSTY SCHEME FOR NON FILIERS

GST council in a measure to give relief to tax payers and augment revenue, may allow filing of GSTR1 under GST amnesty scheme. Gstr1 may be allowed to file without any penalty from July 17 to November 2019 . This scheme will be applicable if all GSTR1 pending will be filed till 10.01.2020.

The post GST COUNCIL MEETING AGENDA appeared first on GST Platform.