35th GST Council Meeting Highlights in India
GST council meeting are held very often prior to elections but in the mid- three months the meeting was not arranged due to the election pressure and canvassing for votes. The council meeting was arranged on 21 st June 2019 under the eyes of Mrs Nirmala Sitharaman, who is the second Union Finance Minister. The Union Budget meeting was heading up in a month’s time with many modifications and expectations in the indirect tax issues.
The following highlights were in accord with GST
1. GST annual return due date will be extended upto 31 August 2019 for the Financial Year 2017-18
Where the GST annual return due date extended for filing GSTR-9, GSTR-9A, and GSTR-9C and the extension is permitted for two months from now, which is up till 31 August 2019 for which an Official notification is to be made anytime from now.
2. Aadhaar-permit for GST Registration is to be introduced sooner:
To soothe the current method of GST registration process the necessary paperwork is reduced, with a forward thinking, the GST Council has raised a new system for verification of taxpayers registering themselves under GST at the same time while generation Aadhaar number will be linked to the GSTIN.
3. NAA regime duration is prolonged for two years
National Anti-profiteering Authority (NAA) Possession was given for the GST annual return last date by 30 November 2019. But, GST Council extended this tenure for two years more, to facilitate and approach on all the balance pending cases that were left previously. Hence, the officials are permitted to start with new cases due to lowering interest rate issues, where the GST Council plans to streamline the GST rates.
4. 10% penalty will be applied for delay in hoarding profiteered money
GST Council raised penalty for delay exceeding more than 30 days. A 10% penalty is charged from depositing profiteered amount. This measure encourages taxpayer to submit filing on-time.
5. E-billing starts from January 2020
Raising all the tax invoices on the GST portal. This approved new launching awaits implementation from 1 January 2020 which concentrates only B2B invoicing and this system requires no separate e- way bill also, all the Returns are framed based on the e-invoices. A stepwise pre-planned enforcement is patterned. Soon, Rs 50 crore will be implemented as the limit for the applicability of e-invoicing. Though the GST annual return due date is extended stands as an added advantage for business firms.
6. E-billing is compulsory for theatres
One other important rule passed is approval of the electronic ticketing system by the GST Council implements for multiplexes with more than one screen. This favors the tax compliance related and well-known black ticket cases to be withheld.
7. Lowering the interest rates on electric vehicles, chargers & leasing is deferred and awaits the committee to submit its report.
The decision to slash down the GST rates on electric vehicles and electric chargers are postponed for the next Council meeting. As, it is referred to the Fitment Committee for verification on the feasibility of this rate cut. In the current situation, there are no changes in the 12% and 28% of the GST rates for electric vehicles and electric chargers.
Similarly, the goods valuation rules, the solar power generating systems services, and placing of wind turbines are to be done before the next Fitment Committee. By the next GST Council meeting, the suggestions will be made by this Committee.
8.Lottery for rate cut is put on hold; as the Attorney General is to refer to this Matter earlier
The 35th GST Council meeting discussed the lottery rate cut in one shot and showcased two pending cases in regards to this in front of the high court and supreme courts. Despite these, the matter is referred back to GST Council by the court, for decision making after consulting the Attorney General of India.
9. GST Appellate Tribunal/ GSTAT
The GST council stated once and for all on the judicial authority for the Goods and Service Tax Appellate Tribunal and will arbitrate on the petitions that came into existence from central and state tax authorities’ in-house dispute resolution system. The number of GSTAT required will be decided by the state resulting in two tribunals in a single state.
10. Other Due date extensions
|Form||New due date|
|ITC-04 for July 2017- June 2019||31 August 2019|
|CMP-02 for opting into the composition scheme for service
providers under Notification 2/2019-CT rate
11. In case of Non-filing of GST returns, E-way bills will be blocked
The law stated that where the GST annual returns latest news in GSTR-3B/ GSTR-4 is not required to be filed for two consecutive tax periods, e-way bill generation disabling done for such taxpayers and are brought to force from 21 August 2019, instead of 21st June 2019, which was the earlier notified period of time.
35th GST Council Meeting Expectations
The GST Council Meeting expectations are the discussed and expected changes that are lined up following council meeting are briefly enumerated as under
1. Review status for GSTR-9 submissions:
GSTR-9 seems to be an outline on the GST return. It is presented to the public with a lot of information that is a concise form of intimation. GSTR-1 and GSTR-3B returns do not encompass a few components. GSTR-9 preparation is done through a substantial effort to ensure filing is not delayed. There is a sustained confusion among the taxpayers about this form and the government’s efforts on this matter, is to make sure that the filings improve and taxpayers finish this vital tax compliance in regards to the FY 2017-18.
2. New Simplified GST returns – clear input tax credit system
GST Council is includes its agenda in regards to various issues that needs clarity, among which the basic one is the ITC claiming mechanism proposed according to the scheme of GST 2.0. The return forms ANX-1 and ANX-2 of ITC in GST 2.0 is available automatically. Though, the clear picture portraits on ITC claims filing in the intervening period of GSTR-1 and GSTR-3B. Also, ANX-1 tested result needs a clarified output in detail.
3. Deciding the pertinence of billings
E-invoicing gains a lot of pull up in the previous month in the businesses. Also a few declare that the government plans to introduce compulsory e-billing needs for this industry where the annual returns will be around Rs 50 crores. This can help to control on avoiding tax. This method nullifies the gaps between GSTR-1 and GSTR-3B ensuring the input tax credited cannot be misused.
There are still gaps in understanding the impact of introducing e-invoicing. Among which the existence of very simplified returns for e-invoicing subject on GSTN as the sales particulars have been uploaded already from the time of billing. The impact of this move is to be judged based on the taxpayers, who interact with e-invoicing persons.
4. Geotagging through RFID Effect is brought
E-way bills are also checked through the RFID tagging mechanism. Though, it is yet to come into effect-to-date. This helps to check the unaccounted consignments moving across India.
5. Streamlining of tax rates
Revising on the GST rate on electric vehicles from 12% to 5% to boost sales is discussed. The electric charger rate might be lowered to 18% from the current 28% agenda. GST rate is also reduced for Hybrid vehicles.
In it earlier meetings, GST Council sets up committees for solving problems and study the issues of lottery taxation and other items. A decision is required to prune the structure of taxing the state-run lotteries and private players.
A look forward to the Taxation of solar projects in the agenda. Adding-on to the list, the automobile sector which is focused to acquire the benefits of the GST declining rates from the maximum 28% and currently, this division is having a vision to reduce the movement in sales. Also, rate cut will help in the sales recovery. GST Council may enforce GST on a few items which have been left without GST tax charges for a long time.
Extra-Neutral Alcohol: It is the highly anticipated item, which is also known in short as ENA and is used as the manufacturing input of whisky, gin, country liquor, and so on. Natural Gas & Petroleum products: The next GST Council meeting after the elections commences with the first round of discussions on the pros and cons of settling the GST rates on petroleum products and natural gas.
6. Extended Proposal on the regime of NAA new setup approval for appellate tribunals
The two-year regime of National Anti-profiteering Authority (NAA) ends by 30 November 2019 which might get extended for one more year that is till 30 November 2020. Around 60 plus cases are left pending on the table of the authority. The authority had to verify and pass the orders that might need more time. Though there are numerous ideas laid before the GST council, setting up of more appellate tribunals throughout India is very important and first and foremost criteria.
GST Council proposed an idea prior to the introduction of e-ticketing cinemas. Additionally, the GST Council will answer on the establishing GST Tribunal in States. The decisions made in the last year GST council meeting presented by Revenue Secretary – Ajay Bhushan Pandey, held on March 2019.
These rules are passed by the central to customize the entire society in a common method and prevent sort of fraudulent activities. The new GST announcement is very stressful for many B2B and B2C business circlet.