IMPORTANT HIGHLIGHTS OF GST COUNCIL MEETING DATED 22-12-2018

1.   Facility of Generating E-way bill will be restricted if tax payer failed to file the returns for two consecutive tax periods

Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN/NIC make available the required functionality.

2.   Late Fee

Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.

3.   Due date for GST ITC-04 extended till 31-03-2019

The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.

4.   Period for filing Annual Return under GST extended

The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 — 2018 shall be further extended till 30.06.2019.

5.   ITC for the last financial year against invoices can be availed upto 31-03-2019

ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 201 9, subject to specified conditions.

6.   Advance Ruling

In case of conflict on advance ruling, then the decision of Centralized Authority is binding.

7.   Due date for furnishing GSTR-8 by E-commerce operators extended

The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till 31.01.2019.

8.   Single Cash Ledger for each tax head

There would be a single cash ledger for each tax head. The modalities for implementation would be finalised in consultation with GSTN and the Accounting authorities.

9.   Refund

A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on pilot basis. The modalities for the same shall be finalized shortly.

10.  Invoices / Documents can be uploaded through portal

All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-OIA shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly.

  11.      New return filing system shall be introduced

The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.

The following clarificatory changes, inter-alia, shall be carried out in the formats/instructions according to which the annual return / reconciliation statement is to be submitted by the taxpayers:

·       Amendment of headings in the forms to specify that the return in FORM GSTR-9& FORM GSTR-9A would be in respect of supplies etc. 'made during the year' and not 'as declared in returns filed during the year';

·      All returns in FORM GSTR-I &FORM GSTR-3B have to be filed before filing of FORM GSTR-9 & FORM GSTR-9C;

·        All returns in FORM GSTR-4 have to be filed before filing of FORM GSTR-9A;

·   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;

·       Additional payments, if any, required to be paid can be done through FORM GST DRC-03 only in cash;

·        ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C;

·   All invoices pertaining to previous FY (irrespective of month in which such invoice is reported in FORM GSTR-I) would be auto-populated in Table 8A of FORM GSTR-9;

·       Value of "non-GST supply" shall also include the value of "no supply" and may be reported in Table SD, 5E and 5F of FORM GSTR-9;

·    Verification by taxpayer who is uploading reconciliation statement would be included in FORM GSTR-9C.

The following types of refunds shall also be made available through FORM GST RFD-OIA:

·        Refund on account of Assessment/Provisional Assessment/Appeal /Any Other Order;

·        Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa;

·        Excess payment of Tax; and

·        Any other refund.

In case of applications for refund in FORM GST RFD-OIA (except those relating to refund of excess balance in the cash ledger) which are generated on the common portal before the roll out of the functionality described in point (10) above, and which have not been submitted in the jurisdictional tax office within 60 days of the generation of ARN, the claimants shall be sent communications on their registered email ids containing information on where to submit the said refund applications. If the applications are not submitted within 15 days of the date of the email, the said refund applications shall be summarily rejected, and the debited amount, if any, shall be re-credited to the electronic credit ledger of the claimant.

Clarifications on refund matters

Clarifications shall be issued on certain refund related matters like refund of ITC accumulated on account of inverted duty structure, disbursal of refunds within the stipulated time, time allowed for availment of ITC on invoices, refund of accumulated ITC of compensation cess etc.

Changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.

The requisite Notifications/Circulars for implementing the above recommendations of the GST Council shall be issued shortly. (PIB)

Extension of the due date for filing of Annual GST returns to 31st March 2019

Government extends deadline for filing annual GST return by by three months 

Extension of the due date for filing of returns in FORM GSTR-9, 9A and 9C for the part of the Financial Year July 2017 to March 2018 from 31st December 2018 to 31st March 2019.

Press Release in this regard is attached. Notification is awaited.

No direct confiscation U/s 130 under the Goods & Services Tax Act, 2017

To download order dated 10th of October, 2018, passed by Hon'ble Punjab & Haryana High Court, in case of "M/s R.R. Enterprises, Ludhiana V/s State of Punjab and others", CWP No. 23203 of 2018,

CLICK HERE

Hon'ble High Court ordered to release interest accrued due to delay in refund

Hon'ble Punjab & Haryana High Court, Chandigarh in Civil Writ Petition (CWP) no. 18314 of 2018, titled as "M/s Sukhdev & Company V/s State of Punjab and others", ordered that the amount of interest due to the petitioner be paid to the firm within four weeks.

In the said case, Mr. M. P. Singh, Financial Commissioner, Taxation, Punjab presented in person in Court. He submitted that after the introduction of GST from July 1, 2017, the process of refund of any excess amount paid by the assessees is streamlined. He further submitted that about a sum of  Rs.750 crores is to be refunded to the assessees under the Punjab Value Added Tax Act, 2005 (for short 'the VAT Act').

For detailed order Please CLICK HERE

Hon'ble Punjab & Haryana High Court ordered to release interest alongwith refund

Key-important Points of 28th GST Council Meeting Held on 21st July, 2018

Under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs 28th GST Council Meeting was held and in which, the new return formats and associated changes in law are approved. The formats and business process approved on 21 July 2018 were in line with the basic principles with one major change i.e the option of filing quarterly return with monthly payment of tax in a simplified return format by the small taxpayers.

The GST Council has recommended following key points on 21st July, 2018 :

• Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
• Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
• Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council.
• Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
• opening of migration window for taxpayers till 31st August ,2018
• All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. The return is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier

• NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.

• The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return.
• The Council approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply.

• Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.

• As a green initiative, GST on supply of e-books has been reduced from 18 to 5%.

• 5% GST is being extended to footwear having a retail sale price up to Rs. 1000 per pair. Footwear having a retail sale price exceeding Rs. 1000 per pair will continue to attract 18%

• Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.

• The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya,Sikkim and Uttarakhand To be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.

• Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.

• Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.

• Scope of input tax credit is being widened, and it would now be made available in respect of the following:
  1. Most of the activities or transactions specified in Schedule III;
  2. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;
  3. Motor vehicles for transportation of money for or by a banking company or financial institution;
  4. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
  5. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.

• The following transactions to be treated as no supply (no tax payable) under Schedule III:
  1. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
  2. Supply of warehoused goods to any person before clearance for home consumption; and
  3. Supply of goods in case of high sea sales.
• Recovery can be made from distinct persons, even if present in different State/Union territories.
• The order of cross-utilisation of input tax credit is being rationalised.
• In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with.

• Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
• Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.
• Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
• Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.

• Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.

EWay Bill is mandatory from 01.06.2018. Notification is attached.

Punjab Government has also implemented EWay Bill for Intra-State Movement of Goods from 1st June 2018. The copy of Press Release is attached below.