GST Updates- 38th Council Meeting

38th GST Council meeting was held on 18 December 2019 at New Delhi. The agenda of council included major rate revisions, relook into the cases of inverted tax structure and simplification of the upcoming new GST return system.

The 38th GST council meeting has been concluded with several major and minor changes in the GST rates as well as in the annual return filing due dates, penalty and ITC related provisions.

Below are the highlights of the Council Meeting:-

  • Waiver of FORM GSTR-1 late fees for period(s) July-2017 to November-2019, if return filed by 10th January 2020 vide Notification 75/2018-CT dated 31-12-2018
  • Reduced late fee for delayed filing of GSTR-1 from Rs. 200/- per day to Rs. 50/- per day. For NIL returns it was reduced to Rs. 20/- per day vide Notification 4/2018-CT dated 23-01-2018
  • FORM GSTR-9 and 9C due date for FY 2017-18 extended to 31st January 2020. For FY 2018-19 due date for Form-9 & 9C is 31st March 2020.
  • E-way Bill for taxpayers who have not filed their FORM  GSTR-1 for two tax periods shall be blocked as recommended by the council
  • Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.
  • Reduction from 20% to 10% of un-reflected invoices or debit notes, tightens the pro-activeness towards compliance both on part of seller and buyer.
  • Due date of filing GST returns for the month of November, 2019 to be extended in respect of a few North Eastern States.
  • 28% Tax on both State run and State authorized lottery. This change shall become effective from 1st March, 2020. Prior, GST rates on lottery schemes were 12 % for State-owned – 12% & 28% for State-authorized
  • GST rate increased to 18% from 12% on HSN code 3923/6305 starting from 1st January 2020 (woven and non-woven bags and sacks of polythene or polypropylene strips or same, both or not laminate)
  •  To exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government. This change shall become effective from 1st January, 2020.
  • Grievance Redressal Committees (GRC) will be constituted at Zonal/State level with both CGST and SGST officers and including representatives of trade and industry and other GST stakeholders (GST practitioners and GSTN etc.). These committees will address grievances of specific/ general nature of taxpayers at the Zonal/ State level.
  • Standard Operating Procedure for tax officers would be issued in respect of action to be taken in cases of non-filing of FORM GSTR 3B returns.
  • The council has also recommended that suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations.

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