Analysis of 9 major decision taken in 35th GST Council Meeting

Analysis of 9 major decision taken in 35th GST Council Meeting

The 35^thGST Council Meeting was held under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. This was the first meeting of the Council after the swearing in of the new Government. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Revenue Secretary Shri Ajay Bhushan Pandey and other senior officials of the Ministry of Finance.

Here is Analysis of 9 major decision taken in 35th GST Council Meeting

1.) Extension of Due date of filing GST Annual Return GSTR9, GSTR9A & GSTR9C

On account of difficulties being faced by taxpayers in furnishing the annual returns inFORM GSTR-9,FORM GSTR-9Aand reconciliation statement inFORM GSTR-9C, the due date for furnishing these returns/reconciliation statements to be extended till 31.08.2019.

2.) New return system to be introduced in a phased manner

For small taxpayers (with turnover of up to Rs. 5 crores)

Forms Required to be filed	Description of Form	July to September, 2019	October to December, 2019
GST ANX-1	Annexure of outward and inward supplies that require payment of GST under reverse charge	Optional and can be filed on a trial basis	Mandatory to be filed on a quarterly basis, due in January, 2020
GST ANX-2	Annexure of Inward Supplies	Optional and can be filed on a trial basis	No action shall be allowed (View only facility)
GSTR-1 and GSTR-3B	Statement of output supplies and monthly return	Mandatory filing is required	Not required to be filed
PMT-08	Payment of self-assessed tax	Not required to be filed	Mandatory to be filed
GST-RET-01	Quarterly return	Not required to be filed	For this Quarter, due in January, 2020

For large taxpayers (with turnover of more than Rs. 5 crores)

Forms Required to be filed	Description of Form	July to September, 2019	October to December, 2019
GST ANX-1	Annexure of outward and inward supplies that require payment of GST under reverse charge	Optional and can be filed on a trial basis	Mandatory to be filed on a monthly basis
GST ANX-2	Annexure of Inward Supplies		No action shall be allowed (View only facility)
GSTR-1	Statement of output supplies	Mandatory filing is required	Mandatory to be filed on monthly basis (it shall not be required from December 2019)
GSTR-3B	Monthly return	Mandatory filing is required	Mandatory to be filed on monthly basis (it shall not be required from December 2019)
PMT-08	Payment of self-assessed tax	Not required to be filed	Mandatory to be filed
GST-RET-01	Monthly return		Mandatory to be filed in January, 2020

It may be noted that invoices etc. can be uploaded inFORM GST ANX-1on a continuous basis both by large and small taxpayers from October, 2019 onwards.FORM GST ANX-2may be viewed simultaneously during this period but no action shall be allowed on suchFORM GST ANX-2;

3.) Extension to opt for New 6% Presumptive Taxation Scheme for service providers

Last date for filing of intimation, inFORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, has been extended from 30.04.2019 to 31.07.2019

4.) Restriction imposed on generating e-way bill

Rule 138E of the CGST rules, pertaining to blocking of e-way bills on non-filing of returns for two consecutive tax periods, to be brought into effect from 21.08.2019, instead of the earlier notified date of 21.06.2019

5.) Extension to file form GST ITC-04 in respect of goods sent to or received back from job worker

To provide sufficient time to the trade and industry to furnish the declaration inFORM GST ITC-04,relating to job work, the due date for furnishing the said form for the period July, 2017 to June, 2019 to be extended till 31.08.2019

6.) Extension of tenure of National Anti-Profiteering Authority

The tenure of National Anti-Profiteering Authority has been extended by 2 years.

7.) Introduction of e-invoicing

The Council decided to introduce electronic invoicing system in a phase-wise manner for B2B transactions. E-invoicing is a rapidly expanding technology which would help taxpayers in backward integration and automation of tax relevant processes. It would also help tax authorities in combating the menace of tax evasion. The Phase 1 is proposed to be voluntary and it shall be rolled out from January 2020

8.) Setting up of GSTAT

The Council took a decision regarding location of the State and the Area Benches for the Goods and Services Tax Appellate Tribunal (GSTAT) for various States and Union Territories with legislature. It has been decided to have a common State Bench for the States of Sikkim, Nagaland, Manipur and Arunachal Pradesh.

9.) Decisions on rate changes on supply of good and services

Electric Vehicles

On issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle, the Council recommended that the issue be examined in detail by the Fitment Committee and brought before the Council in the next meeting.

Solar Power Generating Systems and Wind Turbines

In terms of order of the Honble High Court of Delhi, GST Council directed that the issue related to valuation of goods and services in a solar power generating system and wind turbine be placed before next Fitment Committee. The recommendations of the Fitment Committee would be placed before the next GST Council meeting.

Lottery

Group of Ministers (GoM) on Lottery submitted report to the Council. After deliberations on the various issues on rate of lottery, the Council recommended that certain issues relating to taxation (rates and destination principle) would require legal opinion of Learned Attorney General.