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

  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. We suggest to avail it on or before 31.03.2019

2. Annual Return & GST Audit – Due Date Extended to 30.06.2019

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

3. No Interest on delay payment of Tax payable through Electronic Credit Ledger

  1. Proposed amendment under section 50: Interest u/s 50 should be charged only on the amount payable through electronic cash ledger, i.e., on the net tax liability to be paid in cash.
  2. In our view Government would provide some method to compute the interest as well, i.e., of which period ITC has to be considered and the situation where available ITC of respective month has already been utilized in subsequent period.
  3. Further, the situation where taxpayer has buffer/excess amount in its Cash Ledger at the end of respective month till the date of payment, has not been covered in above proposal. In our view the same should also be taken care of by the Government.

4. Simplified Return System

  1. Simplified new return filing system to be introduced on trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.

5. Proposed Changes in the Formats/Instructions of Annual Return & GST Audit Forms
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.

6. Single Cash Ledger

  1. All cash ledgers of each tax head (i.e. CGST, IGST, SGST/UTGST) would be combined into a single cash ledger

7. Restriction on Generation of E-Way Bill – for Return Defaulters

  1. Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills.

8. Late Fee Waiver on delay filing of Returns

  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.

9. ITC-04 (for Job Work) – Due Date Extended to 31.03.2019

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

10. Amendment in Acts to be notified w.e.f. 01.02.2019.
11. Constitution of Centralized AAAR

  1. Creation of Centralized Appellate Authority for Advance Ruling to deal with conflicting decisions between two or more State AAAR on the same issue.

12. RCM proposed on Security services (supply of security personnel) provided to a registered person.
13. Taxation of Residential Property in Real Estate Sector – Issue referred to Law Committee and GST Council Meeting would take a view in its next meeting.
14. Changes/clarification regarding tax rate & exemption of several goods & services have also been recommended during the meeting.

-Authored by:
Adv. Pawan Arora, Joint Partner
-Co-authored by:
Adv. Ditipriya Dutta Chowdhury, Associate

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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