Detailed Recommendation of GST Council on 31st GST Council Meet

Rec­om­men­da­tions made dur­ing 31stMeeting of the GST Council

The GST Coun­cil in its 31st meet­ing held today at New Del­hi made the fol­low­ing pol­i­cy recommendations:

1. There would be a sin­gle cash ledger for each tax hea The modal­i­ties for imple­men­ta­tion would be finalised in con­sul­ta­tion with GSTN and the Account­ing authorities.
2. A scheme of sin­gle author­i­ty for dis­burse­ment of the refund amount sanc­tioned by either the Cen­tre or the State tax author­i­ties would be imple­ment­ed on pilot ba The modal­i­ties for the same shall be final­ized shortly.
3. The new return fil­ing sys­tem shall be intro­duced on a tri­al basis from 04.2019 and on manda­to­ry basis from 01.07.2019.
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 30.06.2019.
5. The fol­low­ing clar­i­fi­ca­to­ry changes, inter-alia, shall be car­ried out in the formats/instructions accord­ing to which the annu­al return / rec­on­cil­i­a­tion state­ment is to be sub­mit­ted by the taxpayers:

• 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 returns in FORM GSTR‑1&FORM GSTR-3B have to be filed before fil­ing of FORM GSTR‑9&FORM GSTR-9C; All returns in FORM GSTR‑4 have to be filed before fil­ing of FORM GSTR- 9A;
• HSN code  may  be  declared  only  for  those  inward  sup­plies  whose  val­ue inde­pen­dent­ly accounts for 10% or more of the total val­ue of inward supplies;
• Addi­tion­al pay­ments, if any, required to be paid can be done through FORM GST DRC-03 only in cash;
• ITC can­not be availed through FORM GSTR‑9 &FORM GSTR-9C;
• All invoic­es per­tain­ing to pre­vi­ous FY (irre­spec­tive of month in which such invoice is report­ed in FORM GSTR‑1) would be auto-pop­u­lat­ed in Table 8A of FORM GSTR‑9;
• Val­ue of “non-GST sup­ply” shall also include the val­ue of “no sup­ply” and may be report­ed in Table 5D, 5E and 5F of FORM GSTR‑9;
• Ver­i­fi­ca­tion by tax­pay­er who is upload­ing rec­on­cil­i­a­tion state­ment would be includ­ed in FORM GSTR-9C.

6. The due date for fur­nish­ing FORM GSTR‑8 by e‑commerce oper­a­tors for the months of Octo­ber, Novem­ber and Decem­ber, 2018 shall be extend­ed till 31.01.2019.

7. The due date for sub­mit­ting FORM GST ITC-04 for the peri­od July 2017 to Decem­ber 2018 shall be extend­ed till 31.03.2019.

8. ITC in rela­tion to invoic­es issued by the sup­pli­er dur­ing FY 2017–18 may be availed by the recip­i­ent till the due date for fur­nish­ing of FORM GSTR-3B for the month of March, 2019, sub­ject to spec­i­fied conditions.

9. All the sup­port­ing documents/invoices in rela­tion to a claim for refund in FORM GST RFD-01Ashall be uploaded elec­tron­i­cal­ly on the com­mon por­tal at the time of fil­ing of the refund appli­ca­tion itself, there­by obvi­at­ing the need for a tax­pay­er to phys­i­cal­ly vis­it a tax office for sub­mis­sion of a refund appli­ca­tion. GSTN will enable this func­tion­al­i­ty on the com­mon por­tal shortly.

10. The fol­low­ing types of refunds shal­lal­so be made avail­able throughFORM GST 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

11. In case of appli­ca­tions for refund in FORM GST RFD-01A(except those relat­ing to refund of excess bal­ance in the cash ledger)which are gen­er­at­ed on the com­mon por­tal before the roll out of the func­tion­al­i­ty described in point (10) above, and which have not been sub­mit­ted in the juris­dic­tion­al tax office with­in 60 days of the gen­er­a­tion of ARN, the claimants shall be sent com­mu­ni­ca­tions on their reg­is­tered email ids con­tain­ing infor­ma­tion on where to sub­mit the said refund appli­ca If the appli­ca­tions are not sub­mit­ted with­in 15 days of the date of the email, the said refund appli­ca­tions shall be sum­mar­i­ly reject­ed, and the deb­it­ed amount, if any, shall be re-cred­it­ed to the elec­tron­ic cred­it ledger of the claimant.

12. One more win­dow for com­ple­tion of migra­tion process is being allowe The due date for the tax­pay­ers who did not file the com­plete FORM GST REG-26 but received only a Pro­vi­sion­al ID (PID) till 31.12.2017 for fur­nish­ing the req­ui­site details to the juris­dic­tion­al nodal offi­cer shall be extend­ed till 31.01.2019. Also, the due date for fur­nish­ing FORM GSTR-3B and FORM GSTR‑1 for the peri­od July, 2017 to Feb­ru­ary, 2019/quarters July, 2017 to Decem­ber, 2018 by such tax­pay­ers shall be extend­ed till 31.03.2019.

13. Late fee shall be com­plete­ly waived for all tax­pay­ers in case FORM GSTR‑1, FORM GSTR-3B &FORM GSTR‑4 for the months / quar­ters July, 2017 to Sep­tem­ber, 2018, are fur­nished after 22.12.2018 but on or before 31.2019

14. Tax­pay­ers who have not filed the returns for two con­sec­u­tive tax peri­ods shall be restrict­ed from gen­er­at­ing e‑way This pro­vi­sion shall be made effec­tive once GSTN/NIC make avail­able the required functionality.

15. Clar­i­fi­ca­tions shall be issued on cer­tain refund relat­ed mat­ters like refund of ITC accu­mu­lat­ed on account of invert­ed duty struc­ture, dis­bur­sal of refunds with­in the stip­u­lat­ed time, time allowed for avail­ment of ITC on invoic­es, refund of accu­mu­lat­ed ITC of com­pen­sa­tion cess e

16. Changes made by CGST (Amend­ment) Act, 2018, IGST (Amend­ment) Act, 2018, UTGST (Amend­ment) Act, 2018 and GST (Com­pen­sa­tion to States) Amend­ment Act, 2018 and the cor­re­spond­ing changes in SGST Acts would be noti­fied w.e.f. 02.2019.

The req­ui­site Notifications/Circulars for imple­ment­ing the above rec­om­men­da­tions of the GST Coun­cil shall be issued shortly.