HIGHLIHTS OF 38TH GST COUNCIL MEETING

Abhilasha Pawar CEO, Founder Director BIZSUTRA CONSULTANT PRIVATE LIMITE

2020-10-12

38th meeting of the GST Council was held on 18th December 2019 under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman. The 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.

Let us check out the complete amendments done under the finance minister Smt. Nirmala Sitharaman in the 38th GST council meeting :

1. Constitution of Grievance Redressal Committees :

Grievance Redressal Committees (GRC) will be constituted at Zonal /state level with both CGST and SGST officiers and including representatives of trade and industry and other GST stakeholders (GST practioners and GSTN etc.). these committees will address grievances of soecific /general nature of taxpayers at Zonal/state level.

1. Extension of Due date for GSTR -9  and GSTR -9C

Due date for annual return in FORM GSTR-9 and reconcillation statement in FORM GSTR-9C for F.Y 2017-18 are further extended to 31.01.2020, earlier it was 31.12.2019, extension of 1 month is granted for taxpayer to make use of offline tool of GSTR-9C.

1. Waiver of late fees of FORM GSTR-1

Waiver of late fees to all taxpayers in respect of all pending FORM GSTR-1 from July 2017 to November 2019 if the same are filed by 10.01.2020.

1. Blocking of E-way bill 

Generation of E-Way Bill shall be blocked for those taxpayers who have not filed their FORM GSTR-1 for two consecutive tax periods.

1. Restriction on provisional ITC further reduce to 10%

      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 of restricted ITC  to 10 per cent from earlier 20 per cent if invoices not uploaded

1. Extension of due date for GST return for certain region

 Due date of filing GST returns for the month of November, 2019  to     be extended in respect of a few North Eastern States.

1. Action to be taken against Fake Invoices

Suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations, to check the menace of fake invoices.

1. Standard Operating Procedure for tax officers

A 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.

1. Council exempts long term lease on industrial plots

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.

1. Uniform rate of 28% for lotteries

Uniform rate of GST @ 28% on both State run and State authorized lottery to be levied with effective from 1st March, 2020.

Prior to this, GST rate on Value of supply of lotteries

• Run by State Government                         : 12%
• Authorised by State Government              : 28%

1. Uniform rate of 18% for woven and Non-woven bags

         The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks of polyethylene or polypropylene strips or the like , whether or not laminated, of a kind used for packing of goods ( HS code 3923/6305)in view of the requests received post the changes recommended on such goods in last meeting and recommended to raise the GST to a uniform rate of 18%(from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1st January, 2020.