The 31st GST council meeting held on 22nd December 2018 has taken some key decisions over the GST return forms and highest GST slab rate. The items coming under the 28% GST slab rate basically includes the common man’s items which were earlier in the news for a rate reduction.
Read Also: List of Items Removed from 28% GST Slab Rate: 31st GST Council Meeting
And now the GST council is in action to give some more revisions to the already existing GST acts and rules along with any rate reduction. The finance minister Arun Jaitley and the chairperson of GST council made some significant modifications in the overall pattern of the GST return filing system and the relevant GST rates.
Recommendations Under the 31st Meeting of the GST Council
- Proposed single cash ledger for particular tax heading and modalities will be settled after the consultation with accounting and GSTN authorities.
- Single disbursement authority scheme for the refund amount sanctioned from either the Centre or the State tax authorities will be tried and implemented on the pilot scheme.
- The revised return filing system is scheduled for the trial basis from 1st April 2019 and for the mandatory basis from the 1st July 2019.
- Annual returns of the forms including FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 due dates extended till 30th June 2019.
- Given are the revision format and instructions taken as a guide while filing annual return/reconciliation statement which is to be submitted by taxpayers:
- Amendment of headings in the forms to specify that the return in FORM GSTR-9 FORM GSTR-9A would be in respect of supplies etc. ‘made during the year’ and not ‘as declared in returns filed during the year’;
- All returns in FORM GSTR-1 & FORM GSTR-3B have to be filed before the filing of FORM GSTR-9 & FORM GSTR-9C;
- All returns in FORM GSTR-4 have to be filed before the filing of FORM GSTR9A;
- HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies;
- Additional payments, if any, required to be paid can be done through FORM GST DRC-03 only in cash;
- ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C;
- All invoices pertaining to previous FY (irrespective of the month in which such invoice is reported in FORM GSTR-1) would be auto-populated in Table 8A of FORM GSTR-9;
- Value of “non-GST supply” shall also include the value of “no supply” and may be reported in Table 5D, 5E, and 5F of FORM GSTR-9;
- Verification by the taxpayer who had uploaded reconciliation statement would be included in FORM GSTR-9C.
- Form GSTR 8 due date for the e-commerce operators for the given months i.e. October, November and December 2018 for the extension till 31st January 2019.
- Form GST ITC 04 due date for the time period i.e. July 2017 to December 2018 extension till 31st March 2019.
- Invoice issued by the suppliers within the time period of FY 2017-18 in context to ITC is to be availed by the recipient till the due date for the purpose of furnishing Form GSTR 3B for the month of March 2019 pertaining to particular conditions
- Documents supported for the claim of refund in the Form GST RFD 01 is required to be uploaded electronically at the time of filing refund application on the govt portal
- Forms to be made available via FORM GST RFD 01A:
- i) Refund on account of Assessment/Provisional Assessment/Appeal/Any Other Order;
- ii) Paid-up tax on an intra-State supply which is particularly held to be inter-State supply and vice-versa;
- iii) Excess payment of Tax; and
- iv) Any other refund.
- In case of applications for refund in FORM GST RFD-01A (except those relating to refund of excess balance in the cash ledger)which are generated on the common portal before the rollout of the functionality described in point (10) above, and which have not been submitted in the jurisdictional tax office within 60 days of the generation of ARN, the claimants shall be sent communications on their registered email ids containing information on where to submit the said refund applications. If the applications are not submitted within 15 days of the date of the email, the said refund applications shall be summarily rejected, and the debited amount, if any, shall be re-credited to the electronic credit ledger of the claimant.
- An additional window for completion of the migration process is being allowed. The due date for the taxpayers had not filed the complete FORM GST REG-26 but have received Provisional ID (PID) only till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July 2017 to February, 2019/quarters July 2017 to December 2018 by such taxpayers shall be extended till 31.03.2019.
- The 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.
- Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN/NIC make available the required functionality.
- Clarifications will be issued on various refund related matters like a refund of ITC accumulated on account of inverted duty structure, disbursal of refunds within the stipulated time, the time allowed for the availment of ITC on invoices, refund of accumulated ITC of compensation cess etc.
- Changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.
Note: Further required Notifications/Circulars for implementing given recommendations of the GST Council will be issued soon.
Other Updates Under 31st GST Council Meeting:
-
- The GST council mentioned Centralised Appellate Authority for Advance Ruling (AAAR) formation for the solution of GST litigations from across the country. While the council also took a decision over net tax liability of the taxpayer and to be paid on the said term only.
- The council also took the decision to create GoM (Group of ministers) to look for any possible support from the state finance ministers on the matter of goods and service tax. While the GoM will be further supported with the committee of experts from Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning)
- The council also referred some of the issues to the GoM for review including the extension of the composition scheme to the small service providers with the rate of tax and threshold limit under finalization. Residential properties taxation under the real estate sector and MSMEs threshold limit review.
GST Slab Rate Reduced: 31st GST Council Meeting
