GST Council 31st meeting recommendations

GST Council 31st meeting recommendations

Hi Readers, in this article we will discuss the GST Council 31st Meeting recommendations. The GST Council in its 31st meeting held December 22, 2018 at New Delhi made the following major policy recommendations; once the same is approved by the GOM (Group of ministers) then the same will be implemented: –

1) There would be a single cash ledger for each tax head. The modalities for implementation would be finalized in consultation with GSTN and the Accounting authorities. If such system will be implemented then it will be big relief for the assesses, who punched the numbers in wrong tax head and which leads to duplication of payment. This will lead to simplification of tax payment process as well as it will avoid the unnecessary hassles for the tax payers.

2) A 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 same will lead to the simplification of the refund process and avoid the travelling of taxpayer to different departments.

3) The new format for the return filing will be introduced from 01st April 2019 onwards and it will be mandatory on or after 01st July 2019.

4) The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till June30, 2019. Earlier it was December 31, 2019 extended to 31st March 2019 through Press note.

Also See, “ GST Reminder Charts for Statutory due dates

5) The following are the clarifications provided by the council w.r.t. filing of the annual return/ reconciliation statement which is due on June 30, 2019. The tax payer must consider these while preparing and filing GSTR 9, GSTR 9A, GSTR 9C: –
  • Amendment of headings in the forms to specify that the return in FORM GSTR-9 & FORM GSTR-9A would be in respect of supplies etc. ‘made during the year’ and not ‘as declared in returns filed during the year’;
  • All the due returns in the form of GSTR1, GSTR 3B, GSTR 4 and others needs to be filed before filing of GSTR 9C, GSTR 9, GSTR9A;
  • Additional taxes due arises due to the GSTR 9, GSTR 9A, GSTRC can be paid only via cash ledger; such tax payables is not allowed to be set off with the input tax credit available in the credit ledger account;
  • Input tax credit cannot be availed by filing of annual GSTRs i.e. GSTR9, GSTR9A, GSTR 9C;
  • HSN code wise details needs to be furnished where the such value exceeds 10% of the total inward value;
  • All the invoices furnished under GSTR1 will be auto-populated in annual forms in Table 8A
  • Value of “non-GST supply” shall also include the value of “no supply” and needs to be reported under Table 5;
  • The verification by the taxpayer who is uploading the reconciliation statement will be included in the FORM of 9C;
  • GSTR-8 i.e. return to be furnished by the e-commence vendor for the period starting from Oct-December 2018 is extended till January 2019.
  • Due date for submitting FORM GST ITC-04 for the period Jul 2017 to Dec 2018 shall be extended till Jan 2019.
  • A big relief for the tax payer who didn’t claim the input tax credit on any of the invoices issued during the FY 2017-18; the same can be claimed in any of GST-3B for till March 2019; this can be considered as last chance for the persons to claim any amount of input tax credit for which they were eligible & missed to claim it by any reason.
  • A major & much awaited relief to the tax payers who are waiting for their refunds to be credited, now need not visit the GST offices regularly as all the requisites documents can be uploaded over the portal. The hassle of visiting the GST offices and waiting for refunds will be soon over.
6) The following are types of refunds can be claimed from the GST portal i.e. 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.

Further to above, if the refund didn’t get processed within the time limit of 60 days from the date of RFD issuance then the tax payer can send an email from its registered email id and the concern official has to respond over it with the specific reason for not processing the refund application. Within 15 days of such email, the tax payer needs to submit the requisite details to the jurisdictional officer & if no response submitted by the tax payer within 15 days of such email then the refund application will be considered deemed rejected & the amount of such refund amount will be re-credited in the respective credit ledger of the tax head.

7) A BIG RELIEF to the tax payer who has lost their input tax credit during the migration process from state VAT Acts or from Service Tax Act to GST Act in July 2017. Such migration can be completed till Jan 2019. The concern tax assessee needs to visit the respective jurisdictional officer with the appropriate documents.

8) Late fees shall be waived off for all taxpayers in case of FORM GSTR-1, GSTR-3B, GSTR-4 for the period starting from July 2017 to September 2018, are furnished after December 22, 2018 but on or before March 31, 2019.

9) Taxpayers who are in default for the not filing GST returns from last two consecutive periods will be restricted from generating the e way bills.

10) GST Council 31st meeting recommendations in respect of rate change and clarification of Goods is below.

Press Note 1

Press Note 2

For any query you can write at taxhouseindia@gmail.com. Before making any decisions do consult with your professional or tax advisor.

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