GST Council in the 31st meeting held on 22nd December, 2018 at New Delhi took following decisions relating to changes in GST rates, and clarification (on Goods). The decisions of the GST Council have been presented in this note for easy understanding. The same would be given effect to through Gazette notifications/ circulars which shall have force of law.
1. GST Refund related changes affecting Refund claim in Form GST RFD-01A
- A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on pilot basis.
- Shortly new functionality shall be updated on GST portal so that the supporting documents / invoices in relation to the refund claim in Form GST RFD-01A can be uploaded electronically.
- 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 above described updation, 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.
- Following listed additional type of refunds shall now be made available through Form GST RFD-01A –
- Refund due on account of any assessment /provisional assessment/ appeal/ any other order;
- Tax paid on an intra-state supply which is subsequently held to be inter-state supply and vice-versa;
- Excess tax payment; and
- Any other refund.
2. GST Return related
Following table summarizes the new due date effecting various GST returns along with the period for which extension has been provided.
|RETURN FILING FORM||PARTICULARS||PERIOD||NEW DUE DATE|
|GSTR-9||Annual Return||F.Y. 2017-2018||30.06.2019|
|GSTR-9A||Annual Return (For Composition Taxpayer)||F.Y. 2017-2018||30.06.2019|
|GSTR-9C||Reconciliation Statement & Certification||F.Y. 2017-2018||30.06.2019|
|GSTR-8||Return to be filed by E-Commerce Operator||October, 2018|
|GST ITC-04||Details of goods / capital goods sent to job worker and received back||July, 2017 to December, 2018||31.03.2019|
2.1 Important point for filing of an annual return
- It is mandatory to file Form GSTR-1, Form GSTR-3B and Form GSTR-4 before filing an annual return in Form GSTR-9, GSTR-9A and Form GSTR-9C.
- HSN code of only those inward supplies needs to be declared whose value is 10% or more of the total value of inward supplies.
- While filing of the annual return, if any additional payment is required to be made, the same can be done only in cash through Form GST DRC-03.
- ITC cannot be availed through Form GSTR-9 and GSTR-9C.
- All the invoices pertaining to the previous FY (irrespective of the month in which such invoices 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 of taxpayer who is uploading reconciliation statement would be included in Form GSTR-9C.
3. Reverse Charge Mechanism
- Parliament and State legislatures shall be given the same tax treatment with regard to payment of tax under RCM as available to the Central and State Government.
- Security service (supply of security personnel) provided to a registered person shall be put under RCM. The same is not applicable to Government Departments which have taken registration for TDS and composition scheme dealer.
- Services provided by unregistered Business Facilitator to a bank and agent of Business correspondent to a Business correspondent shall be put under RCM.
4. GST on Solar Power Generating Plant and other Renewable Energy Plant
- GST @5% has been prescribed on renewable energy devices and parts for their manufacture (bio gas plant/solar power based device, solar power generating system etc.) falling under chapter 84, 85 or 94.
- Cases wherein 5% GST attracting goods are supplied alongwith services of construction etc. and other goods for solar power plant, in such case, 70% of the gross value shall be deemed as the value of supply of goods attracting 5% and remaining 30% shall be deemed as the value of supply of service attracting standard GST rates.
5. Migration to GST
One more window for completion of migration process is being allowed. Relevant due dates are as under
|Taxpayer who did not file the complete Form GST REG-26 but who has received only a provisional ID (PID) till 31.12.2017.||31.01.2019|
|Return filing due date of above referred taxpayer in Form GSTR-1 and Form GSTR-3B for the period July, 2017 to February, 2019 and quarter July, 2017 to December, 2018.||31.03.2019|
6. Updates with respect to ITC
ITC in relation to the invoices issued by the supplier during FY 2017-2018 can be availed by the recipient till the due date of furnishing of Form GSTR-3B for the month of March, 2019, subject to specified conditions.
7. Other Important Update
- Scheme for single cash ledger for each tax head would be introduced.
- The new return filing system shall be introduced on trial basis from 1st April, 2019 and the same would be made mandatory from 1st July, 2019.
- Late fee waiver in case of Form GSTR-1, GSTR-3B and GSTR-4 for the months / quarters July, 2017 to December, 2018 being filed after 22nd December, 2018 but on or before 31st March, 2019.
- Update in system will be made so that taxpayer will not be able to generate e-way bill in case he has not filed the returns for the two consecutive tax period.
- In principle approval to the following amendments in the GST Acts:
- Creation of a Centralised Appellate Authority for Advance Ruling (AAAR) to deal withcases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue.
- Amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger.
8. Relevant Press release for Rate Change
- Decisions taken by the GST Council in the 31st meeting held regarding GST rate on services
- Recommendations made during 31st Meeting of the GST Council held on 22nd December, 2018 (New Delhi)-Rate changes
- Recommendations made during 31st Meeting of the GST Council held regarding Rate changes and clarification in Goods