On 18th December, 2019, Wednesday, 38th GST Council Meeting was held in New Delhi under the chairmanship of our Hon’ble Union Finance Minister Nirmala Sitharaman.
Some major decisions were taken in the Council meeting that shall affect the business were as follows –
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38th GST Council Meeting: Key Takeaways
1. Due Date for GSTR 9 and GSTR 9C extended
The GST Council has once again extended due date for filing GSTR 9 and GSTR 9C for FY 2017-18 to 31st January, 2020. This due date has been extended after taking into view that the new offline utility tool with recent updates will be made available on 21st December, 2019.
2. Provisional ITC claim restricted to 10%
As per Notification No – 49/2019, provisional Input Tax Credit claim was restricted to 20% of ITC available as per GSTR 2A. In this Council, this provisional claim was further restricted to 10% of ITC available as per GSTR 2A. This decision will create additional burden on the businesses, thereby, reconciling purchases with GSTR 2A data and follow-up with the suppliers becomes mandatory
3. GSTR 1 Late Fees
Late fees for GSTR 1 for the period July 2017 to November, 2019 has been waived off through an amnesty scheme if such returns are filed before 10th January, 2019. Where GSTR-1 for the period July 2017 to November,2019 is filed after 10th January, 2020 late fees shall be payable.
4. Blocking of E-way Bill
Earlier, e-way bill generation was blocked if GSTR 3B was not filed for consecutive two tax periods. However, it has now been decided in the Council that even if GSTR 1 is not filed for two consecutive tax periods then e-way bill generation shall be blocked. With the introduction of this rule, the Council not only mandates GSTR 3B filing but also GSTR 1 filing.
5. Extension of Due date for North Eastern States
Due dates for filing GST returns for the month of November, 2019 has been extended for certain North Eastern States.
Sr. No | Particulars | Revised GST Rates | Earlier GST Rate | Applicability Date |
|---|---|---|---|---|
1 | Lotteries – State-owned and State authorised | 28% | State-owned – 12% | 1st January, 2020 |
2 | HSN Code – 3923 / 6305 - Bags (woven and non-woven bags and sacks of polythene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods including FIBC) | 18% | 12% | 1st January, 2020 |
3 | Long-term lease of an industrial or financial infrastructure plots – Where Central or State Government holds 20% or more shares in developer’s capital | Exempted | Earlier share – 50% or more shares | 1st January, 2020 |
Other Important Decisions
1. Grievance Redressal Committee –
Grievance Redressal Committee (GSC) shall be constituted at Zonal/ State level that will include all stakeholders’ representatives to address grievances of specific and general nature of taxpayers at the Zonal / State level
2. Standard Operating Procedure (SOP)
A SOP shall be issued for all tax officers regarding actions to be taken in case GSTR 3B is not filed by the taxpayer.
3. Amendment of law
The Council has approved various law amendments that shall be approved in Budget 2020.
Conclusion
Certain decisions in this Council meeting were taken with the view of increasing revenue from GST for the Government as the GST collection has been dwindling for the past few months.