Notified Changes after recommendations by GST Council in 31st Meeting dated 22.12.2018

1. ITC for FY 2017-18 – can be availed upto filing of GSTR-3B of March’2019[Order issued vide Order No. 02/2018-Central Tax]

  1. Input Tax Credit w.r.t invoices of F/Y 2017-18 may be availed by recipient till the due date of furnishing FORM GSTR-3B for the month of March 2019. [Subject to conditions as may be specified]
  2. It is to be noted that abovesaid benefit shall be available only in respect of those invoices which are uploaded by the supplier in its GSTR-1.
  3. GSTR-1 for FY 2017-18 can also be amended by the supplier till the due date of furnishing FORM GSTR-3B for the month of March 2019.
  4. We suggest to avail it on or before 31.03.2019

2. Annual Return & GST Audit – Due Date Extended to 30.06.2019 [Order issued vide Order No. 03/2018-Central Tax]

  1. FORM GSTR-9, GSTR-9A, GSTR-9C for F/Y 2017-18 – 30.06.2019

3. Proposed Changes in the Formats/Instructions of Annual Return & GST Audit Forms [New Forms have been notified through amendment in CGST Rules vide Notification No. 74/2018- CT dated 31.12.2018]
Claificatory 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 tax payers;

  1. Supplies “made during the year” have to be reported in FORM GSTR-9 and not “as declared in returns filed during the year”
  2. All returns (GSTR-1/GSTR-3B/GSTR-4) needs to be filed before filing FORM GSTR-9/9A and GSTR 9C.
  3. 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.
  4. Additional payments, if any, required to be paid can be done through FORM GST DRC-03 in cash.
  5. ITC cannot be availed through FORM GSTR-9 and GSTR-9C.
  6. All invoices pertaining to previous F/Y [irrespective of month in which such invoice is reported in FORM GSTR-1] would be auto-populated in Table 8A of FORM GSTR-9.
  7. 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.
  8. Verification by taxpayer who is uploading reconciliation statement would be included in FORM GSTR-9C.

4. Restriction on Generation of E-Way Bill – for Return Defaulters [Amendment made in CGST Rules, however, it shall come into force at a later date to be notified]

  1. Taxpayers (whether as a supplier or recipient) who have not filed the returns for consecutive two months shall be restricted from generating e-way bills. [In case of composition dealer- two consecutive tax period. ]
  2. The restriction on generation of e-way bill shall be applicable to all persons including a consigner, consignee, transporter, an e-commerce operator or a courier agency.
  3. Commissioner on sufficient cause being shown may allow furnishing of e-way bill by order subject to conditions and restrictions as specified by him.

5. Late Fee Waiver on delay filing of Returns [Notified- Notification No. 75/2018-CT,76/2018-CT,77/2018-CT]

  1. Late fee to be completely waived off for all taxpayers in case FORM GSTR-1. GSTR-3B and GSTR-4 for the period July 2017 to September 2018 are furnished after 22.12.2018 but on or before 31.03.2019.

6. ITC-04 (for Job Work) – Due Date Extended to 31.03.2019 [Notified- Notification No. 78/2018-CT]

  1. FORM GST ITC-04 (for job work) for period July 2017 to December 2018: 31.03.2019

7. RCM on Security services (supply of security personnel) and on two other services : (Notified w.e.f. 01.01.2019 – Notification No. 29/2018-CT(R)]

  1. GST is payable under Reverse charge on security services (services provided by way of supply of security personnel) provided by any person other than body corporate to a registered person in the taxable territory.
  2. Sl.No. Category of Supply of Service Supplier of Service Recipient of Service
    12 Services provided by business facilitator (BF) to a banking company Business facilitator (BF) A banking company, located in the taxable territory
    13 Services provided by an agent of business correspondent (BC) to business correspondent (BC). An agent of business correspondent (BC) A business correspondent, located in the taxable territory.

8. Changes/clarification regarding tax rate & exemption of several goods & services have also been recommended during the meeting. [ Changes in tax rates and exemption notification of goods and services are notified w.e.f. 01.01.2019 and various circulars are also issued to clarify some industry specific issues ]

9. New Form of Refund Application (GST-RFD-01) : A new format of refund application GST-RFD-01 has been substituted vide CGST (14th amendment) Rules vide Notification No. 74/2018-CT.

10. No signature or digital signature required on issuance of an electronic invoice/Bill of Supply in accordance with Information Tachnology Act, 2000.

11. NO TDS is to be deducted on supply of goods/services which takes place between persons specified in Section 51(a),(b),(c) and (d) of CGST Act. In other words the person who are required to deduct TDS under GST Law are not required to deduct TDS on supplies done between each other. (Notification No. 73/2018- CT dated 31.12.18)

Recent Announcements:
1. Taxation of Residential Property in Real Estate Sector – [Recently, the Hon’ble Finance Minister has announced to consider 5% rate on under-construction flats in the next GST Council Meeting to be held on 10.01.19. ]

-Authored by:
Adv. Pawan Arora, Joint Partner,
ALA Legal

GST Law India is a blog on GST and allied commercial laws managed by members of the law firm ALA Legal.

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