35th GST Council Meeting Analysis
CA Swapnil Munot

Updated on February 9th, 2024

35th GST Council Meeting was held at New Delhi on 21 June 2019 , after more than three months of longer gap. It was the 1st GST Council meeting  under 2nd term of Modi Govt. and also under the chairmanship of Hon’ble Finance Minister Smt. Nirmala Sitharaman.  It was one of the meeting, for press release of the same, whole India, was waiting.

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35th GST Council Meeting Highlights-

  • Extension of due date for GST Annual Return and Audit
  • Roadmap for New GST Return system is finalized
  • Decision taken w.r.t GST Appellate Tribunal 
  • Extension of due date for opting Service Composition Scheme for F.Y. 19-20
  • E Way bill cannot be generated from 21st Aug 2019, if Return is not filed for past two   period. 
  • ITC O4 date again Extended
  • Decision taken w.r.t GST Appellate Tribunal
  • 1. Extension for Due Date for GST Annual Return & Reconciliation Statement

    Various trade association and professional bodies has represented for Extention of time limit for GST Annual Return and Audit. Recently, government has made said forms available which has legal, procedural and technical issues.

    Therefore, on account of difficulties being faced by taxpayers in furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C, the due date for furnishing these returns/reconciliation statements to be extended till 31.08.2019

    2. E-Invoicing

    Since last couple of months, it was heard from media sources that government is seriously looking at E Invoicing. In this regard, The Council decided to introduce electronic invoicing system in a phase-wise manner for B2B transactions. E-invoicing is a rapidly expanding technology which would help taxpayers in backward integration and automation of tax relevant processes. It would also help tax authorities in combating the menace of tax evasion. The Phase 1 is proposed to be voluntary and it shall be rolled out from Jan 2020

    Expectation of Trade / Industry: In this regard, it is expected by trade/Industry that, government should give sufficient time for understanding online portal for the same, making required changes in ERP of Taxpayer. Also, after introduction of the same, hope there would not have been any requirement to prepare E Way bill, as well as preparing hard invoice. Sufficient provision is to be introduced for Transitional Phase as well.

    Government should unfold its card in this regard, at earliest, because Invoicing/Billing is very important concern for taxpayer

    e-Invoice Generation Process From GSTHero Dashboard:

     3. No E-Way Bill , If GST Return is not filled

    Earlier it was decided that Rule 138E of the CGST rules 2018, which is pertaining to blocking of e-way bills on non-filing of returns for two consecutive tax periods, is to be implemented from 21st June 2019. However, considering working capital issue faced by tax payer and to provide sufficient time, it is now decided that said provision to be brought into effect from 21.08.2019, instead of the earlier notified date 21st June 2019.

    Compliance Status: It is very important provision, which will impact running of business, if tax is not paid for 2 months, since E Way bill cannot be generated in such case. Therefore, it is recommended that, tax payer should ensure that, maximum pendency of tax payment and return filing is limited to 2 months only.

    4. Extention of Time Limit for Opting Service Composition Scheme

    Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, to be extended from 30.04.2019 to 31.07.2019

    5. Implementation of New GST Return System

    Recently, government has made available proto type of New GST Return System, for understanding. Last year, in 27th GST Council meeting held on 4th May 2018, Council has approved basic structure of New Return System and in 28th GST Council meeting held on 21st July 2018, council has approved features and format of New Return System. In this meeting, council has finally decided to implement said New Return system from Oct 2019, in phase manner, as per below:
    • Trail Phase: Between July, 2019 to September, 2019, the new return system (FORM GST ANX-1&FORM GST ANX-2 only) to be available for trial for taxpayers. Taxpayers to continue to file FORM GSTR-1 & FORM GSTR-3B as at present
    • Form GST ANX – 1: From October, 2019 onwards, FORM GST ANX-1 to be made compulsory. Large taxpayers (having aggregate turnover of more than Rs. 5 crores in previous year) to file FORM GST ANX-1 on monthly basis whereas small taxpayers to file first FORM GST ANX-1 for the quarter October, 2019 to December, 2019 in January, 2020;
    • It may be noted that invoices etc. can be uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019 onwards. FORM GST ANX-2 may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX-2;
    • Form GST RET – 01:  For October and November, 2019, large taxpayers to continue to file FORM GSTR-3B on monthly basis and will file first FORM GST RET-01 for December, 2019 in January, 2020
    • From October, 2019, small taxpayers to stop filing FORM GSTR-3B and to start filing FORM GST PMT-08. They will file their first FORM GST-RET-01 for the quarter October, 2019 to December, 2019 in January, 2020;
    • From January, 2020 onwards, FORM GSTR-3B to be completely phased out and new returns will be in place.
    Preparation Required: Industry and Tread should start gearing up for New Return System. Changes at ERP, documentation, policies and procedure level may be required, for ensuring preparedness for New Return System.

    6. Job Work Return – ITC 04

    Since last 2 years, ITC 04 has several issues, and practically it becomes very difficult to file said returns. Therefore, on time to time basis, government has extended due date for said return, which is required to be filed on quarterly basis. 

    Again, this meeting, council has decided to extend due date for furnishing the said form for the period July, 2017 to June, 2019 to be extended till 31.08.2019, in order to provide sufficient time to the trade and industry to furnish the declaration in FORM GST ITC-04, relating to job work.

    7. Goods & Service Tax Appellate Tribunal (GSTAT)

    The Council took a decision regarding location of the State and the Area Benches for the Goods and Services Tax Appellate Tribunal (GSTAT) for various States and Union Territories with legislature. It has been decided to have a common State Bench for the States of Sikkim, Nagaland, Manipur and Arunachal Pradesh.

    8. Tenure of NAA

    Considering various profiteering issues are being observed by government under GST, the tenure of National Anti-Profiteering Authority has been extended by 2 years.  Earlier said tenure was for first two years from GST Implementation date.

    9. GST Rate Changes

    No major decision taken on GST Rates in this meeting, as in recent earlier meeting, GST rate was reduced for number of items from 28% to 18%

    • It is decided to rate issues of Electric Vehicles and Solar Power Generating Systems and Wind Turbines, be examined in detail by the Fitment Committee and brought before the Council in the next meeting.
    • Group of Ministers on Lottery submitted report to the Council. After deliberations on the various issues on rate of lottery, the Council recommended that certain issues relating to taxation (rates and destination principle) of Lottery, would require legal opinion of Learned Attorney General.

    10. Amendent In GST Law

    In recent past, council has taken some decision which require amendment in GST Law. Interest liability is to be paid on net amount and not on gross amount is one of such decision. Therefore, it is decided that certain amendments to be carried out in the GST laws to implement the decisions of the GST Council taken in earlier meeting

    This article is only for educational purpose.  These are only recommendation of GST Council and for details of the same, one should refer Notification/ Circular which will be issued by government in due course.

    For any clarification, you may contact the author on: +91 800 7700 800.


    [ Disclaimer: This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. We can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication.]
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    CA Swapnil Munot

    About the author

    He has authored book on GST, titled as “Handbook on GST For Beginners”. Also he has authored Two E Book on - GST E Way Bill and GST Amendment Act.

    He has conducted seminars on GST, Indirect Tax & Foreign Trade Policy at – FIEO, ICAI, MSME, CII, MCCIA, WMTPA, Institute of Cost Accountant of India, Various association, colleges and Institutions etc

    He has conducted 250+ seminars on IDT across India, for Professional, Students, Officers, Practitioners etc

    He is instrumental in obtaining Circular from Department.
    Also, he is Recognized Faculty for GST by ICAI. He is member of IDT Study group Pune of ICAI. He is member of “Taxation Committee”, of MCCIA.

    He is Chairman of ‘CGST – L & R – Committee’ of WMTPA

    He is regularly writing the articles which are published in various leading Taxation Magazine and online portal.

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