37th GST Council Meeting Updates

37th GST Council Meeting Updates
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37th GST Council Meeting Updates

37th GST Council Meeting was held on 20th September 2019. It is the third GST Council Meeting which will be chaired by Finance Minister Nirmala Sitharaman. The last GST Council meeting i.e 36th Meeting which was held on 27th July 2019 which was held before almost two months.  Click here to read the updates of 36th GST Council Meeting. GST Council comprises of Union Finance Ministers and State Finance Ministers which is the federal decision-making body for the matters of GST.

Meeting37th GST Council Meeting
Date Friday, 20th September 2019
ChairpersonFinance Minister Nirmala Sitharaman
VenueGoa
AttendeesFinance Ministers of all the states

Major outcomes from 37th GST Council Meeting

Annual Returns for FY 2017-18 and FY 2018-19

  • GSTR 9A
    • Composition taxpayers are granted a waiver from furnishing the annual return for the FY 2017-18 and 2018-19.
  • GSTR 9 
    • Furnishing of annual return will be optional for the taxpayers whose annual turnover is up to Rs 2 crores for the FY 2017-18 and 2018-19.
    • Furnishing of annual return is mandatory for the taxpayers whose annual turnover is above Rs 2 crores for the FY 2017-18 and 2018-19.

Note: Annual Return (Form GSTR 9) and the Annual Reconciliation Statement (Form GSTR 9C) will be simplified. A Committee of Officers to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.

Due date of filing Appeal before Appellate Tribunals 

  • As the newly constituted Appellate Tribunals are yet not functional, taxpayers are granted more time to file an appeal against orders of Appellate Authority. Due date is extended for the same and will be notified.

Impose restriction on ITC

  • If the taxpayer(supplier) has not filed GSTR -1 (i.e. statement of outward supplies ) u/s 37 of CGST Act,2017. The recipient will not be allowed to avail the ITC in respect of the transaction with the supplier. If the input tax credit is not reflected in GSTR 2A for a recipient the credit cannot be availed.

Postponement of New GST Return filing system

  • New return filing system which was proposed to begin from October 2019 is likely to be implemented from April 2020.
  • Due dates for GSTR 1 and GSTR 3B for the period of October 2019  to  March 2020 will be notified.

Circulars will be issued for uniformity in the application of the law across all jurisdictions

  • What is the procedure to claim the refund (FORM RFD-01A) subsequent to a favorable order in appeal or any other forum?
  • What is the eligibility to file a refund application (FORM GST RFD-01A) for a period and category under which a NIL refund application has already been filed?
  • Clarification regarding supply of Information Technology enabled Services (ITeS services) (in supersession of Circular No. 107/26/2019-GST dated 18.07.2019) being made on own account or as an intermediary.

Circulars to be rescinded

  • A CGST Circular No.105/24/2019 dated 28th June 2019 which was issued for clarification on various doubts related to the treatment of secondary or post-sales discounts under GST will be rescinded ab-initio (nullified from the beginning).

Jammu & Kashmir and Ladakh

  • All the required suitable amendments in the CGST Act, the UTGST Act, and the corresponding SGST Acts will be made in order to create  Jammu & Kashmir and Ladakh as Union Territories.

GST Refunds

  • An integrated refund system with disbursal by a single authority will be introduced from 24th September 2019. Announcement about integrated refund system was made by the Honorable Finance Minister while addressing the media in the month of August 2019.

GST ⇔ Aadhar

  • Aadhar to be made mandatory/ linked with the registration of taxpayers under GST.
  • Explore the possibility of making Aadhar mandatory for claiming refunds under GST.

Tackle GST Frauds

  • Reasonable restrictions on passing of input tax credit by risky taxpayers including risky new taxpayers will be imposed (mostly by GSTN portal/system) in order to tackle the menace of fake invoices and fraudulent refunds under the GST.

Revision in GST Rates 

The changes announced in today’s meeting shall be effective from 1st October 2019 and notification for the same shall be issued.

⇒ GST rates reduced for Hotel Accommodation services 

  • If the room tariff is up to Rs 1,000/- GST rate will be NIL.
  • If the room tariff is between Rs 1,000/- to Rs 7,500/-  GST rate will be 12%.
  • If the room tariff is up to Rs 7,500/- GST rate will be 18%.

⇒ GST rates for Job work 

  • GST rate for job work services in relation to diamonds reduced from 5% to 1.5%.
  • GST rate for machine job work services in relation to the engineering industry reduced from 18% to 12%.
  • GST rate for job work services in relation to the bus body building will remain the same as present 18%.

⇒  GST rates for Warehousing to be exempted prospectively

  • If services of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibers such as cotton, flax, jute, etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, rice, coffee, and tea are provided.

 

The article is compiled by CA Ankita Khetan. If you have any queries concerning the above article. Please write to us either in the comments section below or email the author on info.financepost@gmail.com.

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