Highlights of 35th GST Council Meeting dated 21st June 2019

Looking for the updates / Highlights of the 35th GST Council Meeting? Here are the most important ones.

Extension in due dates for filing GSTR – 9, GSTR – 9A & GSTR – 9C for FY 2017-18

The due date for filing GST annual returns/reconciliation statements has been extended till 31.08.2019 for all taxpayers.

Due date for declaration in FORM GST ITC- 04

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

Amendment pertaining to Blocking of E-way bill for non-filers effective from 21.08.19

Amendment made via insertion of Rule 138E pertaining to blocking of e-way bills on non-filing of returns for two consecutive tax periods shall now be made effective from 21.08.2019 instead of the earlier notified date of 21.06.2019. Notification No. 25 /2019 – Central Tax date. 21.06.2019 has also been issued to effect the said decision.

Opting for composition for service providers filing date extended to 31.07.19

The last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, to be extended from 30.04.2019 to 31.07.2019. Said scheme is for the service providers who are otherwise not eligible for regular composition option. Said form needs to be filed by the tax payer’s opting to pay tax @ 6% under the said scheme.

Tenure of National Anti-Profiteering Authority extended

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

E-invoicing introduced, to be rolled out in January 2020

The Council also decided to introduce an 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. Phase 1 is proposed to be voluntary and it shall be rolled out from January 2020.

State and Area Benches for GST Appellate Tribunal location(GSTAT)

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

Rate of tax – Electric Vehicles: Concession

GST concession by way of lowering the rate of tax in respect of electric vehicle, charger and hiring of the electric vehicle has been sent to the Fitment Committee for examination in detail. The issue to be again brought in the next meeting.

Rate of tax – Lottery

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

Aadhaar to be linked while granting registration under GST.

Taxpayers applying for online GST registration to get registered on the GSTN portal & get GSTN registration number through Aadhaar OTP authentication. In the current system, people have to give various documents, now the Government has decided to use Aadhaar for GST Registration. We await further instructions from the government on the exact process for GST Registration.

New Return Filing System effective from January 1, 2020

New Return Filing System will be introduced in a phased manner. It may be noted that the government has proposed Sahaj and Sugam Forms for GST Filing going forward. The new GST Return filing system would come into effect fully from January 1, 2020.

Amendments in GST Laws

Certain amendments to be carried out in the GST laws to implement the decisions of the GST Council taken in an earlier meeting.

10% Penalty introduced for Profiteering Offences

The department will now be strict regarding profiteering activities by businesses. If any business is found guilty of siphoning off the benefits of tax cuts meant for consumers, an additional penalty of up to 10% of the profiteered amount would be imposed if such business entities don’t pay up fine in 30 days. At present, companies have to deposit a penalty of Rs 25,000.

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