Looking for the updates of the 31st GST Council Meeting? Here are the most important.

• GST 2.0 to be implemented on a trial basis in April 2019

New return filing system to be started on a trial basis from April 1, 2019, and will be implemented by July 1, 2019

• E-way bills norms made strictly

Taxpayers cannot generate e-way bill if they do not file GST returns for two consecutive tax periods. 

•  Simplification of Form GSTR-9 & GSTR-9C*

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. If any additional payments are to be made they can be done through the FORM GST DRC-03 in cash. ITC cannot be availed through FORM GSTR-9 and FORM GSTR-9C. Verification by a taxpayer who is uploading the reconciliation statement would also be included in FORM GSTR-9C. All monthly/quarterly GST Returns must be filed before filing Annual returns Outward or Inward supplies to be declared in the Annual returns to be ‘supplies made during the financial year’ and not ‘supplies, as declared in GST returns filed’ Value of ‘No Supply’ can be declared under Exempt supplies section at Table 5D, 5E or 5F of GSTR-9. In GSTR-9, Table 8A-ITC as per GSTR-2A – auto-populates all invoices related to FY 2017-18 irrespective of the month of filing GSTR-1 by suppliers

• Due date extensions

The due date for filing of GST Annual Return (GSTR-9) and Reconciliation statement ( GSTR-9C) after GST Audit to be extended till 30th June 2019. GSTR-8 to be filed by e-commerce operators for the period 1st October 2018 to 31st December 2018 will be extended to 31st January 2019. Filing of ITC-04 for the months July 2017 to December 2018 to be extended to 31st March 2019.

• GST Rates adjusted

Third party insurance lowered to 12 per cent GST Slab from the earlier 18%. 6 goods and 1 service have been removed from the 28 % GST Slab tax bracket under the Good Services Tax (GST) regime. GST for cinema tickets being less than Rs 100 has a reduced tax rate from 18% to 12% GST Slab, for tickets equal to or above Rs 100, GST reduced from 28% to 18%. Lithium-ion batteries charges, video games consoles, small sport related items, accessories for carriages for disabled removed from 28% slab. Items claimed to be used by the upper segments such as Air conditioners, dishwashers will remain at 28% GST Slab. Bank charges (savings bank), and Pradhan Mantri Jan Dhan Yojana has been exempted from GST. GST rate on special flights for pilgrims slashed for the economy to 5 per cent and business class to 12 per cent. These include travel by non-scheduled/chartered operations for religious pilgrimage, which is facilitated by GoI under bilateral agreements.

• GoM formed to refer to the revenue trends

The revenue trends include analysing the reasons for structural patterns that affected as revenue collection in some of the States. A 7 Member Group of Ministers (GOM) has been formed to study this. They will be assisted by the National Institute of Public Finance and Planning (NIPFP) who will share the findings with the GOM. Whether or not the tax rates on Lotteries must be 12% and 8% GST Slab on state organised and authorised schemes respectively.

Hope this article was helpful. Refer to the topics discussed in the 32nd GST council meeting.