Decisions taken in 27th GST Council Meeting?
In the 27th GST Council Meeting held at?Prime Minister’s Office (PMO) at New Delhi.
It was?chaired by Union Finance Minister?Arun Jaitley?via video conferencing.
Members at the GST Council Meeting expressed satisfaction over revenue growth.
In the meeting one of the major decision taken was simplification in GST return filing system.
Finance Secretary Hasmukh Adhia said – “The Current Return filing System of?GSTR-3B and GSTR-1? will continue for another six months till the?new software for the return filing system would come into force within six months.”
As per the new Simplified Return Filing System which will be effective :
A new return format has been approved based on recommendations of the group of minsiters of IT Simplification.
Single/One Return per month for taxpayers (Note : Exception?composition dealers and nil taxpayers)
For B2B businesses,?Taxpayers will have?to show all B2B transactions and invoice-wise details for them.
For input tax credit, credit to buyer will only be given if the seller has?uploaded an invoice. If? the?seller does not pay the tax, Government will try and recover the tax from the seller but in case the if it is not recovered from the seller, then tax will be recovered from the buyer.
Provisional credit for a period of six months will be allowed based on taxpayers’ calculations irrespective of seller’s matching report.
Buyer will have to monitor its input tax credit between eligible ITC and provisional ITC.
You may also like : Click here for Official Press Release issued by CBIC of 27th GST Council meeting on 4th May,2018
As of now the Central Government owns 24.5 per cent stake in GST Network or GSTN? and? a 24.5 per cent stake is held by? state governments collectively. Totalling to 49% held by Government and remaining 51?per cent with five private financial insitutitions — HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.
The council has approved the proposal of buying out the stake held by private entities to make GSTN a government-owned entity. It also plans that Central Government will own 50 per cent and the remaining would be collectively held by state governments.
- The issue of imposition of cess on sugar has been deferred for the time being. A committee of ministers will be constituted? which will? consider the circumstances under which a? the cost of sugar is ore than its selling price. And based on their recommendations clear/reduce imposition of cess on sugar.
- GST Council?has formed a panel?of five members to consider incentives for digital payments. To which most of the ministers present agreed for a 2 percent incentive for?for digital payments. One?member of the panel did not favour the proposal of incentive for? digital payments.
Click here for Official Press Release issued by CBIC of 27th GST Council meeting on 4th May,2018
The new Simplified Return Filing System
Stake of?GST Network?
Making digital transaction cheaper & reduction in GST rate of ethanol