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GST Council Meeting

GST Council Meeting - Highlights

GST Council in the 38th meeting held on 18th December 2019 at New Delhi took the following decisions relating to changes in GST rates, exemptions,

  • To exempt 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. Presently, the exemption is available to an entity having 50\\% or more ownership of the Central or State Government. This change shall become effective from 1st January 2020. 

  • To levy a single rate of GST @ 28\\% on both State-run and State-authorized lottery. This change shall become effective from 1st March 2020.

  • The Council also considered the rate of 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 ( HS code 3923/6305) in view of the requests received post the changes recommended on such goods in the last meeting and recommended to raise the GST to a uniform rate of 18\\%(from 12\\%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1st January 2020.

Highlights of 38th GST Council Meeting

  • Due date extended for GSTR 9 and 9C

The due date of GSTR-9 and GSTR-9C are extended further till 31 January 2020 from the earlier date of 31 December 2019. It was done to allow more time for taxpayers to use the offline tool of GSTR-9C that is expected to be made available on 21 December 2019.

  • Provisional ITC claim in GSTR-3B further restricted

The amount of ITC availed on a provisional basis restricted to 10\\% from the earlier 20\\%, where invoices or debit notes are not reflected in GSTR-2A. Hence, invoice matching must be frequently done and vendor communication becomes challenging.

  • Late fee waiver on GSTR-1 through an amnesty scheme

Waiver of late fee for GSTR-1 for tax periods between Jul 17 and Nov 19, if filed by 10 January 2020. If the taxpayer does not still file for more than two consecutive tax periods, then the e-way bills of such taxpayers will be blocked from generation.

  • Standard Operating Procedure (SOP) in case of non-filing of GSTR-3B defined for the taxman

The SOP is to be released for the benefit of tax officers about actions taken for the non-filing of GSTR-3B. These will help in blocking or reversal of fake ITC availed.

  • GST return due dates extended for certain category of taxpayers

The due date extension for GST returns for some North Eastern States (November 2019) to be extended till 31 Dec 2019.

  • The GST Council decided to levy 28\% tax on all lotteries

  1. Opts for voting to conclude the matter

  2. Date of applicability is 1 March 2020

  3. Prior, GST rates on lottery schemes were as follows:

    • State-owned – 12\\%

    • State-authorized – 28\\%

  • GST Rate rationalized to remove inverted tax structure

The GST Council imposes a uniform rate of 18\\% from earlier 12\\% on bags belonging to HSN code 3923/6305 from 1 January 2020 (woven and non-woven bags and sacks of polythene or polypropylene strips or the like, whether or not laminated, of a kind used for the packing of goods including FIBC). It effectively removes the inverted tax structure.

  • GST exemption for the industrial land developers

Supply should be a long-term lease of industrial or financial infrastructure plots. The Central or State Government holds 20\\% or more shares in the developer’s capital from the earlier share of at least 50\\%. Exemption to apply from 1 January 2020.

  • Other Decisions

Amendments to the GST law to be taken up in the Union Budget 2020-21. Several thoughts deliberated on GST revenue augmentation. Grievance Redressal Committees (GRC) will be constituted at the Zonal/State level to address grievances of the specific/ general nature of taxpayers.

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