The GST Council In The 38th Meeting Held On 18th December 2019 Proposed Recommendations, Announcing Certain Law & Procedure Changes And Rationalized Rate-Structure. The Proposed Recommendations Will Be Effective From The Date When Relevant Notification Will Be Issued By CBIC.
Important proposed recommendations are as follows:
· Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.
· Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR9C for FY 2017-18 to be extended to 31st January 2020.
· Following measures would be taken to improve filing of FORM GSTR-1:
a) Waiver of late fee to be given to all taxpayers in respect of all pending FORM GSTR-1 from July 2017 to November 2019, if the same are filed by 10th January 2020.
b) E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked.
· Due date of filing GST returns for the month of November, 2019 to be extended in respect of a few North Eastern States
Change in tax rate:
· 28% GST rate on both State run and State authorized lottery with effect from 1st March 2019.
· With effect from 1st January 2019, GST rate on Woven and Non-Woven Bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods falling under HS code 3923/6305) will be 18%.
· Upfront amount payable for long term lease of industrial/financial infrastructure plots by an entity having 20% or more ownership of Central or State Government will be exempt with effect from 1st January 2020. Presently, the exemption is available to an entity having 50% or more ownership of Central or State Government.
Procedural change for departmental officers:
· A Standard Operating Procedure for tax officers would be issued in respect of action to be taken in cases of non-filing of FORM GSTR 3B returns.
· Grievance Redressal Committees (GRC) will be constituted at Zonal/State level with both CGST and SGST officers and including representatives of trade and industry and other GST stakeholders to address grievances of specific/ general nature of taxpayers at the Zonal/ State level.
· To check the menace of fake invoices, suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations.