Milestones/Highlights for the 38th (latest) GST Council

1. Extended deadline of the GSTR-9 and GSTR-9C for fiscal year 2017-18 is January 31, 2020

The deadline of the GSTR-9 and GSTR-9C extends to January 31, 2020, from the previous date on December 31, 2019. Time has been provided to give taxpayers more time to use the offline tool of GSTR line -9C launched on December 21, 2019.

2. Temporary ITC Claim in GSTR-3B further constrained in 38th GST Council Meeting

The amount of ITC available temporarily is limited to 10% from the previous 20%, as invoices or debit notes are not reflected in the GSTR-2A. Therefore, invoices must be settled recursively and communication with the supplier becomes a challenge.

3. Late fees exemption in GSTR-1 by Amnesty Scheme in the latest GST Council Meeting

Exemption from late payment fees for the GSTR-1 for tax periods between July 17 and November 19 was discussed in the latest GST council meeting and if it is filed before January 10, 2020, the late fee will be waived off. If the taxpayer has not yet submitted for more than two consecutive tax periods, their e-bill will be obstructed for generation.

4. Standard Operating Procedures (SOP) if GSTR-3B is not filled specified for taxpayers

The SOP will be posted to tax officials on actions taken for not filing the GSTR-3B. This will help prevent or reverse the counterfeit ITC availed.

5. The deadline for GST returns for specific category of taxpayers

The deadline date for GST returns for some North-Eastern states (November 2019) was to be accepted until December 31, 2019.

6. The GST Council decided to collect 28% tax on all lotteries in the latest GST Council Meeting

• Choices to vote to close the matter
• The date on which it is applicable is March 1, 2020.
• Previously, GST rates on lottery schemes were as follows:
  
  1. State Ownership - 12%
  
  2. State Permitted: 28%

7. Simplified the GST rate to eliminate the inverted tax structure

In the GST council meeting, the council imposed a flat rate of 18% before 12% on bags belonging to HSN code 3923/6305 as of January 1, 2020 (woven, non-woven bags, polyethylene bags, polypropylene strips, the kind used to package the products, including FIBC). It eliminates the inverted tax structure.

8. Goods and services tax exemption for industrial land developers

The offer must be a long-term lease contract for a plot of industrial or financial infrastructure. The central or state government holds 20% or more of the company’s capital shares from before which was at least 50%. Exemption applicable as of January 1, 2020.

9. Other decisions:

Amendments to the Goods and Services Tax Law to be included in the Union 2020-21 budget. Many ideas circulating about the increase in GST income. GRC (Grievance Redressal Committees) will be established at the district/state level to address complaints of a specific/general nature of taxpayers.

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