Updates of 38th GST Council Meeting
38th GST Council Meeting was held on 18th December 2019. It was the 4th GST Council Meeting under the chairmanship of Finance Minister Nirmala Sitharaman.
The last GST Council meeting i.e 37th Meeting which was held on 20th September 2019 which was held before almost three months back. Click here to read the updates of the 37th GST Council Meeting.
- The GST collection has fallen short by nearly 40% of the budgeted figures until now for the financial year 2019-20.
- On 16th December 2019, two days before the GST Council Meet, Central Government has released Rs. 35,298 Crores as compensation to States and Union Territories. For a few, it was stalled for a few months now.
|Meeting||38th GST Council Meeting|
|Date||Wednesday, 18th December 2019|
|Chairperson||Finance Minister Nirmala Sitharaman|
|Attendees||FMs & Senior Officers from all the States & UTs.|
GST Council comprises of Union Finance Ministers and State Finance Ministers which is the federal decision-making body for the matters of GST.
Major outcomes from 38th GST Council Meeting
⊗ The due date for furnishing the Annual Return & Reconciliation Statement for FY 2017-18
- The due date for furnishing the Annual Return in FORM GSTR 9 for FY 2017-18 has been extended to 31st January 2020.
- The due date for furnishing the Reconciliation Statement in FORM GSTR 9C for FY 2017-18 has been extended to 31st January 2020.
Note: The due date for furnishing the Annual Return in FORM GSTR 9A for FY 2017-18 is 31st December 2020 only as nothing has been mentioned for the GSTR 9A in the press release issued.
Note: The updated Form GSTR 9C is still not made available on the GST portal for filing. As per the information flashing in the news and updates section on the GST portal, it is likely that it will be made available by 21st December 2019.
⊗ Late fees for GSTR 1 will be waived off
- If all the GSTR 1 for the period of July 2017 to November 2019 is filed by 10th January 2020 then the late fees will be waived off.
- Practically, the late fees was not paid by the taxpayers as it was not getting auto-calculated and it was not reflected while filing GSTR 3B.
Thought to ponder
⇒ If a taxpayer files GSTR 1 for the period mentioned in the waiver, will the same be auto-populated in GSTR 2A?
⇒ What happens to the input tax credit arising out of filing GSTR 1/ Can the recipient still claim it?
⇒ What happens to the tax already paid by the recipient as ITC was not reflecting in GSTR 2A? Is the Government planning to refund the same? By any chance with interest?
⇒ While a taxpayer files GSTR 1, they can also give the details of credit note and debit note? Will the ITC already claimed get affected?
⇒ If a taxpayer files GSTR 1 for FY 2017-18, will the same be auto-populated in GSTR 9 of FY 2017-18?
⊗ Blocking of the generation of E waybill
- Until now the generation of e way bill was blocked for taxpayers who failed to furnish GSTR 3B for two consecutive tax periods. Henceforth, even if GSTR 1 is not be filed for two consecutive tax periods generation of e way bill will be blocked.
- For taxpayers who file quarterly return GSTR 1 then if GSTR 1 is not filed for two consecutive quarters it would lead to blocking on the EWB portal.
- For taxpayers who file monthly return GSTR 1 then if GSTR 1 is not filed for two consecutive months it would lead to blocking on the EWB portal.
⊗ Changes in the percentage for claiming ITC as per Rule 36(4)
- ITC in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10% of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.
- Earlier the restriction for invoices or debit notes that are not reflected in his FORM GSTR-2A was 20% of eligible ITC available in respect of invoices or debit notes reflected in his Form GSTR-2A.
Note: Still the section 43A of the CGST Act,2017 is not made effective.
⊗ GST rate on Lottery
- A unanimous decision could not be taken for the GST rate on lotteries so the voting was opted.
- Voting was done to finalize a decision on having a uniform GST rate for a lottery. It is the first time that the GST council has opted for voting to make a decision.
- The GST Council voted in favor of 28% as the uniform rate of GST on lotteries for both state-run and state-authorized lotteries.
- Earlier the GST rate for the State-run lottery was 12% and State-authorized was 28%.
- It will be made effective from 1st March 2020.
⊗ GST rate on Bags covered under HSN Code 3293/6305
- A uniform GST rate of 18% will be levied on all such bags falling under HSN code 3923/6305 including Flexible Intermediate Bulk Containers (FIBC).
- Earlier the GST rate for the above was 12%.
- Bags such as woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for the packing of goods, will be covered here.
- It will be made effective from 1st January 2020.
⊗ GST rate on long term lease of industrial/ financial infrastructure plots
- An exemption is available to an entity, on the upfront amount payable for long term lease of industrial/ financial infrastructure plots.
- To avail the benefit of exemption, the eligible entity is the entity having 20% or more ownership of Central or State Government.
- Earlier the eligible entity for this exemption was entity having 50% or more ownership of Central or State Government.
- It will be made effective from 1st January 2020.