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38th GST Council meeting decisions held on 18.12.2019

38th GST COUNCIL DECISIONS ON 18.12.2019

The Goods and Services Tax Act, 2017 came into force with effect from 1.7.2017 in India.

In the 38th GST Council meeting held on 18.12.2019 at New Delhi, the following decisions were taken by the GST Council.  Relevant Notifications will be available later.

Ministry of Finance

GST Council’s decisions regarding Law and Procedure related changes

Posted On: 18 DEC 2019 9:52PM by PIB Delhi

 The 38^th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman here today. The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur  besides Finance Ministers of States & UTs and senior officers of Ministry of Finance.  The GSTCouncil recommended the following:

1.  
1. Grievance Redressal Committees (GRC) will be constituted at Zonal/State level with both CGST and SGST officers and including representatives of trade and industry and other GST stakeholders (GST practitioners and GSTN etc.). These committees will address grievances of specific/ general nature of taxpayers at the Zonal/ State level.
2. Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2017-18 to be extended to 31.01.2020.
3. Following measures would be taken to improve filing of FORM GSTR-1:
2. waiver of late fee to be given to all taxpayers in respect of all pending FORM GSTR-1from July 2017 to November 2019, if the same are filed by 10.01.2020.
3. E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked.

4. Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.
5. To check the menace of fake invoices, suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations.
6. A Standard Operating Procedure for tax officers would be issued in respect of action to be taken in cases of non-filing of FORM GSTR 3B returns.
7. Due date of filing GST returns for the month of November, 2019 to be extended in respect of a few North Eastern States.
8. The Council also approved various law amendments which will be introduced in Budget 2020.

[This note presents the decision of the GST Council in simple language for easy understanding which would be given effect through Gazette notifications/ circulars which alone shall have force of law. The same will be made effective from the date as specified in such notifications / circulars.]

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RM/KMN

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Ministry of Finance

GST Council’s decisions On Rate Changes

Posted On: 18 DEC 2019 9:52PM by PIB Delhi

The 38^th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman here today. The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur  besides Finance Ministers of States & UTs and senior officers of Ministry of Finance.  The GSTCouncil recommended the following relating to changes in GST rates, exemptions.

1. To exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become effective from 1^st January, 2020.

2. To levy a single rate of GST @ 28% on both State run and State authorized lottery. This change shall become effective from 1^st March, 2020.

3. The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks  of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods ( HS code 3923/6305)in view of the requests received post the changes recommended on such goods in last meeting and recommended to raise the GST to a uniform rate of 18%(from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1^st January, 2020.

[This note presents the decision of the GST Council in simple language for easy understanding which would be given effect to through Gazette notifications/ circulars which shall have force of law.]

 RM/KMN

(Release ID: 1596895) Visitor Counter : 54

GST Practitioner Enrolment Confirmation Examination results held on 12.12.2019

GST PRACTITIONERS ENROLMENT CONFIRMATION EXAMINATION RESULTS FOR EXAMINATION HELD ON 12.12.2019

The Goods and Services Tax Act, 2017 came into force in India with effect from 1.7.2017. 

The GST Practitioners Enrolment Confirmation Examinations were held on the following dates

                1^st  Batch Examination            31.10.2018

                2^nd Batch Examination            17.12.2018

                3^rd  Batch Examination            14.06.2019

                4^th  Batch Examination            12.12.2019

National Academy of Customs, Indirect Taxes and Narcotics (NACIN) has conducted examination for confirmation of enrolment of Goods and Services Tax Practitioners (GSTPs) in terms of second proviso to sub-rule (3) of the Central Goods and Services Tax Act Rules, 2017. The examination was held on 12.12.2019 at eighteen centers across India. The GST Practitioners enrolled on the GST Network under sub-rule (2) of rule 83 and covered by clause (b) of sub-rule (1) of rule 83 i.e. those meeting the eligibility criteria of having enrolled as Sales Tax Practitioners or Tax Return Preparer under the existing law for a period not less than five years, were eligible to appear in this examination.

The Result of the above mentioned examination including marks obtained has been made available individually to all GST Practitioners who had appeared in the examination through emails and also on the Examination Portal as Candidates’ dashboard.

The declaration of result of examination published by NACIN is given below for ready reference:

PLEASE CLICK THE LINK GIVEN BELOW TO VIEW THE RESULTS DIRECTLY:

http://www.cbic.gov.in/resources//htdocs-cbec/deptt_offcr/Result_1212.pdf

GST Portal shall not permit optional FORM GSTR-9 and FORM GSTR-9A beyond the extended due dates

OPTIONAL FORM GSTR-9 (BELOW 2 CRORES) AND FORM GSTR-9A TO BE FILED WITHIN THE EXTENDED DUE DATES

The Goods and Services Tax Act, 2017 came into force with effect from 1.7.2017 in India.

Under Section 44 (1) of the Central Goods and Services Tax Act, 2017, every taxpayer, other than an Input Service Distributor, a person paying tax under Section 51 or Section 52, a casual taxable person and a non-resident taxable person shall furnish FORM GSTR-9 and FORM GSTR-9A and FORM GSTR-9C electronically before 31^st December of the succeeding financial year.

The time limit to file Annual Returns in FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C for the year 2017-18 has been extended from 31.12.2018 to 31.3.2019, 30.6.2019, 31.8.2019, 30.11.2019 and finally extended upto 31.12.2019.

The time limit to file Annual Returns in FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C for the year 2018-19 have been extended from 31.12.2019 to  31.3.2020.

The GST Council, in its 37^th meeting recommended relaxation in filing of annual returns for MSMEs for Financial year 2017-18 and Financial year 2018-19 as under:

·   Waiver of requirement of filing FORM GSTR-9A for                 composition taxpayers for the said periods; and

·    Filing of FORM GSTR-9 for those taxpayers who (are required to file the said return but) have aggregate turnover up to Rs. 2 Crores made optional for the said tax periods.

CERTAIN PRACTICAL DIFFICULTIES EXPERIENCED IN FILING ANNUAL RETURNS

The suppliers uploaded FORM GSTR-1 without correct alpha-numeric GSTIN which were not accepted by the GST Portal and hence the taxpayers disclosed such supplies under B2C instead of B2B. Such transactions were not auto-populated in the Recipient’s inward supply details. Opportunity to correct such mistakes was not utilized by such taxpayers within the stipulated time.

Similarly suppliers have uploaded all supplies details in the GST Portal.  The supplies may relate to business activities or capital goods or consumables or goods or services for own use etc.  In such cases the Input Tax Credit auto-populated may be higher than the eligible Input Tax Credit and such ITC has to be reversed in relevant columns.

Amendments made by the Suppliers were not considered by the Recipients and in certain cases there are some variations in auto-populated Input Tax Credit.

The late migrated taxpayers were allowed to file FORM GSTR-3B and FORM GSTR-1 without any late fee or interest between 22.12.2018 to 31.3.2019 which were not auto-populated in recipient’s FORM GSTR-9 or FORM GSTR-9A in certain cases,

Credit Notes or Debit Notes were not properly accounted for by the taxpayers.

Some taxpayers have disclosed NIL rated supplies (exempted) under Zero rated supplies (Export or SEZ) and vice-versa by mistake and Non-GST supplies were not reported.

Reverse Charge Mechanism applicability were not reported by some taxpayers and there is short payment of tax.

If there are omissions in supplies details and omission in reporting Reverse Charge Mechanism turnover already furnished the same may be rectified in the Simplified Annual Return and difference of tax payable may be paid through FORM GST DRC-3 only..

Correct inward supply details may be furnished separately in PDF format duly signed by the taxpayer without CA approval if necessary.

BENEFITS OF FILING OF OPTIONAL ANNUAL RETURN

The suppliers of Goods or Services or both whose aggregate turnover is above Rs. 2 Crore will certainly furnish Annual Returns.

Cross verification of supplies of suppliers with the inward supplies of Recipients will result in difference of turnover.  Similarly inward supplies of recipients with the outward supplies of the suppliers will result in difference of turnover.

If the difference of non-disclosure of supply or inward supply or non-payment of tax on Reverse Charge Mechanism is noticed by the Department, the assessing authority will raise additional demand with late fee, interest and also penalty. 

To avoid such additional demand if any with penalty, all taxpayers whose aggregate turnover below Rs.2 Crore may file Annual returns and verify the correctness.

The time limit to file optional Annual Returns were prescribed as shown below:

FORM TYPE	YEAR	EXTENDED DUE DATE
FORM GSTR-9	2017-18 2018-19	31.12.2019 31.03.2020
FORM GSTR-9A	2017-18 2018-19	31.12.2019 31.03.2020

As there is no provision to levy late fee on optional annual returns, the GST Portal will not accept the same beyond the extended due date mentioned above.  

The Government of India issued Circular No. CBEC-20/16.05.18-GST dated 18.11.2019 and clarified that

·    As per proviso to sub-rule (1) of rule 80 of the CGST Rules, a person paying tax under section 10 is required to furnish the annual return in FORM  GSTR-9A. Since the said notification has made it optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees, it is clarified that the tax payers under composition scheme, may, at their own option file FORM  GSTR-9A for the said financial years before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9A for the said period.

·    As per sub-rule (1) of rule 80 of the CGST Rules, every registered person other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return as specified under sub-section (1) of section 44 electronically in FORM  GSTR-9.  Further, the said notification has made it optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees. Accordingly, it is clarified that the tax payers, may, at their own option file FORM GSTR-9 for the said financial years before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9 for the said period.

       Section 73 of the said Act provides for voluntary payment of tax dues by the taxpayers at any point in time. Therefore, irrespective of the time and quantum of tax which has not been paid or short paid, the taxpayer has the liberty to self-ascertain such tax amount and pay it through FORM GST DRC-03. Accordingly, it is clarified that if any registered tax payer, during course of reconciliation of his accounts, notices any short payment of tax or ineligible availment of input tax credit, he may pay the same through FORM GST DRC-03.

It is better to file optional GST Annual returns as early as possible to avoid additional demand with penalty.

The relevant circular issued is given below for ready reference:

CBEC-20/16/04/18-GST

Government of India

Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes and Customs

GST Policy Wing

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To,

New Delhi, Dated the 18th November, 2019

The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Sub: Clarification regarding optional filing of annual return under notification No. 47/2019- Central Tax dated 9th October, 2019 - regarding

Attention is invited to notification No. 47/2019-Central Tax dated 9th  October, 2019 (hereinafter referred to as “the said notification”) issued under section 148 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “the said Act”) providing for special procedure for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees and who have not furnished the annual return under sub-section (1) of section 44 of the said Act read with sub-rule (1) of rule 80 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “the CGST Rules”).

2.        Vide the said notification it is provided that the annual return shall be deemed to be furnished on the due date if it has not been furnished before the due date for the financial year 2017-18 and 2018-19, in respect of those registered persons. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the said Act, hereby clarifies the issues raised as below:–

a.   As per proviso to sub-rule (1) of rule 80 of the CGST Rules, a person paying tax under section 10 is required to furnish the annual return in FORM  GSTR-9A. Since the said notification has made it optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees, it is clarified that the tax payers under composition scheme, may, at their own option file FORM  GSTR-9A for the said financial years before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9A for the said period.

b.  As per sub-rule (1) of rule 80 of the CGST Rules, every registered person other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return as specified under sub-section (1) of section 44 electronically in FORM  GSTR-9.  Further, the said notification has made it optional to furnish the annual return for FY 2017-18 and 2018-19 for those registered persons whose aggregate turnover in a financial year does not exceed two crore rupees. Accordingly, it is clarified that the tax payers, may, at their own option file FORM GSTR-9 for the said financial years before the due date. After the due date of furnishing the annual return for the year 2017-18 and 2018-19, the common portal shall not permit furnishing of FORM GSTR-9 for the said period.

3.        Section 73 of the said Act provides for voluntary payment of tax dues by the taxpayers at any point in time. Therefore, irrespective of the time and quantum of tax which has not been paid or short paid, the taxpayer has the liberty to self-ascertain such tax amount and pay it through FORM GST DRC-03. Accordingly, it is clarified that if any registered tax payer, during course of reconciliation of his accounts, notices any short payment of tax or ineligible availment of input tax credit, he may pay the same through FORM GST DRC-03.

4.        Difficulty if any, in the implementation of this circular may be brought to the notice of the

Board. Hindi version would follow.

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(Yogendra Garg) Principal Commissioner y.garg@nic.in