The article covers the following:
Latest on GST Council Meeting
As on 20th August 2020
41st GST Council meeting will be held on 27th August 2020 via VC with the key item on agenda being the ways to compensate for the GST revenue shortfall to the states.
As on 12th June 2020
40th GST Council Meeting was held on Friday, 12th June 2020 via video conferencing. For more details, read our article on 40th GST Council meeting.
As on 14th March 2020
39th GST Council Meeting was held on Saturday, 14th March 2020. The implementation of the new GST return system has been postponed to 1st October 2020. The interest for delayed GST payment will be calculated on the net tax liability. This amendment will apply retrospectively from 1st July 2017. Read our article on 39th GST council meet to know more.
Highlights of 38th GST Council Meeting
1. Due dates extended for GSTR-9 and GSTR-9C for FY 2017-18 till 31 January 2020
The due date of GSTR-9 and GSTR-9C are extended further till 31 January 2020 from the earlier date of 31 December 2019. It was done to allow more time for taxpayers to use the offline tool of GSTR-9C that is expected to be made available on 21 December 2019.2. Provisional ITC claim in GSTR-3B further restricted:
The amount of ITC availed on a provisional basis restricted to 10% from the earlier 20%, where invoices or debit notes are not reflected in GSTR-2A. Hence, invoice matching must be frequently done and vendor communication becomes challenging.3. Late fee waiver on GSTR-1 through amnesty scheme:
Waiver of late fee for GSTR-1 for tax periods between Jul 17 and Nov 19, if filed by 10 January 2020. If the taxpayer does not still file for more than two consecutive tax periods, then e-way bills of such taxpayer will be blocked from generation.4. Standard Operating Procedure (SOP) in case of non filing of GSTR-3B defined for taxman:
The SOP is to be released for the benefit of tax officers about actions taken for non-filing of GSTR-3B. These will help in blocking or reversal of fake ITC availed.5. Due dates for GST returns extended for certain category of taxpayers
The due date extension for GST returns for some North Eastern States (November 2019) to be extended till 31 Dec 2019.6. The GST Council decided to levy 28% tax on all lotteries
– Opts for voting to conclude the matter – Date of applicability is 1 March 2020 – Prior, GST rates on lottery schemes were as follows: 1. State-owned – 12% 2. State-authorised – 28%7. GST Rate rationalised to remove inverted tax structure
The GST Council imposes a uniform rate of 18% from earlier 12% on bags belonging to HSN code 3923/6305 from 1 January 2020 (woven and non-woven bags and sacks of polythene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods including FIBC). It effectively removes the inverted tax structure.8. GST exemption for the industrial land developers:
Supply should be a long-term lease of an industrial or financial infrastructure plots. The Central or State Government holds 20% or more shares in the developer’s capital from the earlier share of atleast 50%. Exemption to apply from 1 January 2020.9. Other Decisions:
Amendments to the GST law to be taken up in the Union Budget 2020-21. Several thoughts deliberated on GST revenue augmentation. Grievance Redressal Committees (GRC) will be constituted at Zonal/State level to address grievances of specific/ general nature of taxpayers.LIVE Updates and News as on 18 December 2019
8.30 p.m: GST Council Meet concludes; Revenue Secretary Dr. Ajay Bhushan Pandey addressed the press meet. 5.30 p.m: Sources: GST Council closes the matter of GST Rate on Lottery
- No GST Rate hike to be taken up
- GST compensation likely to be discussed
- Cess hike on cigarettes not on agenda