GST Council in the 31st meeting held on 22nd December, 2018 at New Delhi took following decisions relating to changes in GST rates, and clarification (on Goods). The changes/ recommendations would be given effect to through Gazette notifications/ circulars which shall have force of law. In the 31st GST Council meeting, the Council has proposed various relief to the taxpayers, inter-alia, reduction of GST rates on goods and services, extension of due date for filing of Annual return and GST Audit. All such recommendations would be effective after the issuance of necessary notifications in this regard.
Key takeaways from 31st GST Council meeting are as follows:
New Return Filing System
The CBIC has already issued the draft mechanism for new return filing system. This new return filing system shall be introduced on trial basis from April 1, 2019, which shall be made mandatory from July 1, 2019.
Extension of due dates of various returns
a) The GST Council has made the recommendation for extension of due date for filing of GST Annual Return in Form GSTR-9 or GSTR-9A and GST Audit in Form GSTR-9C for financial year 2017-18. The revised due date shall be June 30, 2019.
b) Due date for filing of return in GSTR-8 by e-commerce operators for the months of October, 2018 to December, 2018 shall be extended to January 31, 2019
c) Due date for filing details of goods or capital goods sent to job worker and received back in Form GST ITC-04 extended to March 31, 2019 for the period July, 2017 to December, 2018.
Late fee waived-off
The GST Council has made the recommendations for waiver of late fees for all taxpayers in case of GSTR-1, GSTR-3B and GSTR-4 for the months and quarters comprising the months of July, 2017 to September, 2018. However, waiver of late fees would be available only when return is furnished between December 22, 2018 and March 31, 2019. If any late fees is paid by the taxpayers for late filing of return, he shall not be eligible to get the waiver of such fees by way of credit in the electronic credit ledger.
Now, there is no need to physically visit a tax office for submission of a refund application. GST Council approves of the online facility which would enable the taxpayer to upload all the required documents on GST portal to claim refund of tax. A scheme of single authority disbursement of Refund amount sanctioned by Central of State authorities would be implemented on pilot basis. The clarification 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 etc. The following types of refunds shall be made available through FORM GST RFD01A:-
a) Refund on account of Assessment/ Provisional Assessment/ Appeal/ any other order;
b) Tax paid on an intra-state supply which is subsequently held to be inter-state supply and vice versa;
c) Excess payment of Tax; and
d) Any other refund.
Creation of Centralized AAAR
At present, there is no provision of Centralized Appellate Authority for Advance Ruling (AAAR). The GST Council has recommended the creation of Centralized AAAR to deal with the conflicting decisions made by two or more State AAAR on the same issue.
Taxpayer who have not filed returns : for two consecutive shall be restricted from generating e-way bills. This provision shall be made effective once GSTN make available the required functionality.
CGST (Amendment), Act 2018, IGST (Amendment), Act 2018, and the corresponding changes in SGST Acts would be notified w.e.f. 01st February, 2019.
Reduction in GST rates of goods
a) Rates reduced from 28% to 18% on certain electronic goods, inter-alia, monitors, television (upto 32 inches), digital cameras, video cameras, video games, pulleys, transmission shafts, cranks, gear boxes, etc.
b) Rates reduced from 28% to 5% for parts and accessories for carriage for disabled person.
c) Rates reduced from 18% to 12% for certain goods, i.e., cork roughly squared or debagged, articles of natural, cork agglomerate cork, etc.
d) Rates reduced from 18% to 5% for marble ruble
e) Rates reduced from 12% to 5% for natural cork, walking sticks, fly ash blocks, etc.
f) Renewal energy devices and parts thereof to be taxed at 5%
g) Certain goods exempted from tax, i.e., goods supplied by nominated agencies to exporters of gold Jewelry, proceeds received by government from auction of gifts, etc.
h) Rates reduced to nil for certain goods, i.e., music books, vegetables (cooked, uncooked or frozen), preserved vegetables, etc.
Reduction in GST rates of services
a) GST rates on cinema tickets has been reduced from 28% to 12% for tickets price up to Rs. 100.
b) GST rates on cinema tickets has been reduced from 28% to 18% for tickets price more than Rs. 100.
c) Third party insurance premium of motor vehicle shall be chargeable to GST at 12% instead of 18%.
d) Certain services shall be exempt from tax, i.e., services by bank to Jan Dhan account holders, services by GTAs to government dept., services by Govt. to their undertakings or PSUs by way of guaranteeing loans taken by financial institutions, etc. We herewith attached detailed note of GST rate changes proposed.