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.

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• Production or manufacture of goods;
• Inward and outward supply of goods or services or both;
• Stock of goods;
• Input tax credit availed;
• Output tax payable and paid; and
• Such other particulars as may be prescribed.”

Accordingly, a registered person under GST is require to maintain the records as mentioned in section 35 of the CGST Act, 2017.  However, a person may maintain additional records for decision making or for other useful information, such as: Read Also : GST AUDIT LIMIT

• Import/export of goods/services, if any;
• Supplies attracting Reverse charge (from unregistered person or specified services/goods);
• Advances received/paid and adjustments made;
• Records for receipt of goods and services from registered person;
• Details for Import of goods including bill of entry and other related documents;
• Returns, payment challans, debit note and credit notes;
• Financial statements;
• Electronic records of tax liability , cash , credit ledger 
• Bank statements and pay-in slips;
• Records for manner of computation of GST liability;
• Records for availment and utilisation of credit;
• GST reconciliation statement;
• Electronic records of:-
• Tax liability
• Credit
• Cash;
• Agreements;
• Job work register;
• Security Deposit Register.

Important Points to be Noted :

• Where more than one place of business is specified in the certificate of registration then the accounts relating to each place of business shall be kept at such places of business;

• The registered person may keep and maintain such accounts and other particulars in electronic form in prescribed manner;

• Every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter (irrespective of whether he is a registered person or not) shall maintain records of the consigner, consignee and other relevant details of the goods in the prescribed manner;

• Every registered person whose turnover during a financial year exceeds the two crore rupees [Rule 80(3) of the CGST Rules, 2017] shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement and such other documents in prescribed form and manner;

• Every registered person, other than a person paying tax under section 10, i.e., composition scheme, shall maintain the accounts of stock in respect of goods received and supplied by him, and such accounts shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and the balance of stock including raw materials, finished goods, scrap and wastage thereof;

• Every registered person is required to keep the particulars of the each and every supplier , recipient and the warehouses;

• In case where goods found stored without any legal documents, then in this case proper office may determine the tax on such goods considering that the goods have been supplied by the registered person;

• Any entry in registers, accounts and documents shall not be erased, effaced or overwritten, and all incorrect entries, otherwise than those of clerical nature, shall be scored out under attestation and thereafter the correct entry shall be recorded and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained;

• Every registered person manufacturing goods shall maintain monthly production accounts showing quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof

• Every registered person supplying services shall maintain the accounts showing quantitative details of goods used in the provision of services, details of input services utilised and the services supplied;

• Every registered person executing works contract shall keep separate accounts for works contract showing – (a) the names and addresses of the persons on whose behalf the works contract is executed; (b) description, value and quantity (wherever applicable) of goods or services received for the execution of works contract; (c) description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract; (d) the details of payment received in respect of each works contract; and (e) the names and addresses of suppliers from whom he received goods or services.

Recording of goods lost or stolen etc. A person is required to record the details of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples properly in its books of accounts. In case where the registered person fails to account for the goods or services or both then the proper officer shall determine the amount of tax payable on the goods or services or both that are not accounted for, as if such goods or services or both had been supplied by such person and the provisions of section 73 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any willful misstatement or suppression of facts) or section 74 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful misstatement or suppression of facts), as the case may be, shall, mutatis mutandis, apply for determination of such tax. Period of Retention of Accounts [Section 36 of the CGST Act, 2017] Under GST, every registered person required to keep and maintain/retain books of account or other records until the expiry of 72 months from the due date of furnishing of annual return, i.e., 31st December for the year pertaining to such accounts and records.  It may be noted that a registered person, who is a party to an appeal or revision or any other proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him or by the Commissioner, or is under investigation for an offence under Chapter XIX, shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of 1 year after final disposal of such appeal or revision or proceedings or investigation, or for the period specified above, whichever is later. 

Ledger Accounts to be maintained Under GST

  The CGST and SGST will be charged on intra-state supplies whereas the IGST will be charged on all inter-state supplies. Therefore separate ledger account is required to be maintained related to CGST, SGST/UTGST, IGST and Compensation Cess. Read Also : NEW PROVISIONS IN GST

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