Amendments by 31st GST Council Meeting
GST Council met on 22nd December 2018 in Delhi and concluded below mention aspects which will be effective from the date of Notification or as decided by the council in their meeting itself.
Here we bifurcated all the relevant changes in various broad categories so that user can find out their specific amendments easily
Payment of Tax
New functionality of “Common Cash ledger” for all type of taxes will be launch soon, this facility would be available subject to consultation with concern authority. As of Now there are different ledger for each class of taxes like CGST and SGST.
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. The modalities for the same shall be finalized shortly. This will speed up pending refund.
Clarifications shall be issued on certain refund related matters like refund of ITC accumulated on account of “inverted duty structure”, disbursal of refunds within the stipulated time, time allowed for availment of ITC on invoices, refund of accumulated ITC of compensation cess etc
All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly.
The following types of refunds shall also be made available through FORM GST RFD- 01A:
- Refund on account of 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 payment of Tax; and
- Any other refund.
Creation of a “Centralised Appellate Authority for Advance Ruling” (AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue
Payment and Interest:
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
Late fee shall be completely waived for all taxpayers in case GSTR-1, GSTR-3B & GSTR-4 for the months/quarters from July, 2017 to September, 2018, if these returns are furnish after 22.12.2018 but on or before 31.03.2019
Taxpayers who did not file the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN/NIC make available the required functionality. However there is no clarity about the type of return whether it is GSTR1 or GSTR 3B.
The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019. Point to be noted that these return can be one pager simplified returns which wasalready suggested by council.
The due date for furnishing the various annual returns like GSTR-9, GSTR-9A and reconciliation statement GSTR-9C for the Financial Year 2017-2018 shall be further extended till 30.06.2019.
The due date for furnishing GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall also be extended till 31.01.2019
Clarification/amendments in Annual Returns
Amendment in the headings of GSTR-9 & GSTR-9A would be in respect of supplies, Words “Supply as declared in returns filed during the year”will be replace with “Supply made during the year”
All returns in GSTR-1 & GSTR-3B have to be filed before filing of GSTR-9 & GSTR-9C. Further GSTR-4 has to be filed before filing of GSTR-9A
HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies;
Additional payments, if any, required arising as an result of GSTR 9, GSTR 9A & GSTR 9C to be paid through FORM GST DRC- 03 only in cash;
ITC cannot be availed through FORM GSTR-9 &FORM GSTR-9C. It means if taxpayer finds any unclaimed ITC, then he has to claim through GSTR 3B then he can claim in Annual returns and Audit.
All invoices pertaining to previous FY (irrespective of month in which such invoice is reported in 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 by taxpayer who is uploading reconciliation statement would be included in GSTR-9C.
ITC in relation to invoices issued by the supplier during FY 2017-18 can be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions. It indicates that government can prescribe certain condition to claim ITC of FY 2017-18.
Changes in rate of various goods:
Goods moved from 28% to 18%
- Pulleys, transmission shafts and cranks, gear boxes etc. falling under HS Code 8483
- Monitors and TVs of upto the screen size of 32 inches
- Re-treaded or used pneumatic tyres of rubber
- Power banks of lithiumion batteries.
- Digital cameras and video camera recorders
- Video game consoles and other games and sports requisites falling under HSN code 9504
Goods moved from 28% to 5%
- Parts and accessories for the carriages for disabled persons
Goods moved from 18% to 12%
- Cork roughly squared or debagged
- Articles of natural cork
- Agglomerated cork
Goods moved from 18% to 5%
- Marble rubble
Goods moved from 12% to 5%
- Natural cork
- Walking Stick
- Fly ash Blocks
Newly Nil Rated goods
- Music Books (Earlier was covered under 12%)
- Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container
- Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
Changes in GST rate for Services:
- 18% GST will be levied on all movie tickets price exceeding INR 100, earlier it was 28%
- 12 % GST will be levied on third party insurance premium of goods carrying vehicles
- Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under PradhanMantri Jan DhanYojana (PMJDY) shall be exempted.
- Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services