Looking for the updates of the 27th GST Council Meeting? Here are the most important.

• Simplification of GST Return Filing:

Initially, a taxpayer was required to file GSTR1 return, GSTR2 return and GSTR3 return. The Government introduced a simplified return called GSTR3B upto December 31, 2017.

• One Monthly Return:

All persons registered under GST, excluding a few exceptions like composition dealer will only have to file one monthly return soon after implementation of new system proposed below. Until then the current filing of GSTR 3B and GSTR 1 return will continue as per schedule. The proposed return filling date will be staggered and based on the turnover of the registered person to manage load on the GSTN. Composition dealers and dealers having nil transaction will have a facility to file quarterly NIL returns. The above change will simplify GST return filing for most taxpayers and make it easier to comply. Currently, those having more than Rs.1.5 crores turnover have to file 2 monthly returns (GSTR3B and GSTR1), while those having less than Rs.1.5 crores turnover are having to file one monthly return (GSTR3B) and one quarterly return (GSTR1).

• Continuous B2B Invoice Uploading and Validation:

B2B invoice uploading and validation will be made unidirectional. Hence, the recipient would not have to accept invoices on the GST portal to claim GST input tax credit. Recipients would be able to continuously see the uploaded invoices during the month and suppliers can upload invoices continuously as well at anytime.

• Transition to New GST Return Filing Procedure:

GSTR 2 and GSTR 3 return filing will continue to remain suspended. The transition to new system of filing GST returns will be done in two stages as follows:

Stage 1:

In stage 1, the current filing of GSTR 1 and GSTR 3B return will continue for a period of 6 months. During this time, the new system will be developed and tested.

Stage 2:

In stage 2, the facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, will be introduced. In stage 2, the dealer will constantly upload invoices and the information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them will be calculated by the system. After 6 months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods.

• Changes to GSTN Ownership:

Currently GSTN is owned by the Government (Central and State) along with five private financial institutions — HDFC, HDFC Bank, ICICI Bank, NSE Strategic Investment and LIC Housing Finance. GSTN is incorporated as a Section 8 Company. Since, the data handled by GSTN is very sensitive, the ownership of GSTN will be fully transferred to the Central Government.

• CESS on Sugar:

The 27th GST Council Meeting also took up the issue of levying 5% GST Cess on sugar and decided to come up with a decision within 2 weeks from now. The proposed Cess levied on sugar will be used by the Government to finance the gap between the cane price mills pay to farmers in accordance with a revenue-sharing formula recommended by the Rangarajan Committee and the benchmark rate – fair and remunerative price (FRP) — fixed by the Central Government. The proposed Cess could be in the range of Rs.1 to R.1.50 per kg of sugar.

• Incentive for Digital Payments:

The Council has discussed in detail the proposal of a concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction, so as to incentivise promotion of digital payment.

Hope this article was helpful. Refer to the topics discussed in the 28th GST council meeting.

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