31st GST Council Meeting Update
By: –
Goods and Services Tax – GST
Dated:- 10-1-2019
Hi Readers,
This is to inform that the GST council in their 31st council meeting held at New Delhi on 22nd Dec 18 has recommended various changes and thereafter notified by issuance of notification under GST law and its compliance, which are summarized below:
Central Tax Notifications
[Notification No. 67/2018 Central Tax dated 31st December, 2018]
Extension in time limit for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process to 31st Jan 19 and to furnish other details to migration@gstn.org.in to 28th Feb 19.
[Notification No. 68/2018, 69/2018 & 70/2018 Central Tax dated 31st December, 2018]
Time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers as specified in Notification No 31/2018
Particular
Period
Due Date
Prior to change
Jul 17 to Nov 18
31st Dec
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ted 31st December, 2018]
Changes in GST Form-9 & 9C
GSTR-1 and GSTR-3B to be filed before filing of GSTR-9
It is mandatory for a registered person to file all GSTR-1 and GSTR-3B for the FY 2017-18 before filing of GSTR-9.
GSTR-4 to be filed before filing of GSTR-9A
It is mandatory for a registered person under composition scheme to file all GSTR-4 returns for the FY 2017-18 before filing of GSTR-9A
Additional Liability to be paid through DRC-03
Any transaction resulting in additional liability which is declared in GSTR-9 to be discharged in Cash Only by way of DRC-03 form
Input Tax Credit cannot be availed through Form 9 & 9C
Registered person cannot claim any ITC unclaimed during FY-17-18 through Form 9 & 9C return. All unclaimed ITC has to be claimed through GSTR-3B only for which Government has extended the due date till the month of filing of Return for 31st March 2019.
Change in Heading of Form GSTR-9 & GSTR-9A
Amendment of headings in the forms to specify that the retu
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r 19
[Notification No. 76/2018 Central Tax dated 31st December, 2018]
Complete waiver of Late fees for late filling of GSTR-3B for period of Jul 17 to Sept 18, if GSTR-3B filled between period from 22nd Dec 18 to 31st Mar 19
[Notification No. 77/2018 Central Tax dated 31st December, 2018]
Complete waiver of late fees for late filling of GSTR-4 for the period of Jul 17 to Sept 18, if furnished between period from 22nd Dec 18 to 31st Mar 19
[Notification No. 78/2018 Central Tax dated 31st December, 2018]
Extension of time limit for filling of Form GST ITC-04, in respect of goods dispatched to Job worker or received from Job worker to 31st Mar 19 for the period Jul 17 to Dec 18
[Notification No. 79/2018 Central Tax dated 31st December, 2018]
Amendment in Notification No.-2/2018 for insertion of proviso which provides officers for exercising power under Section 73, 74, 75 & 76 through the jurisdictional senior authority.
Central Tax (Rate) Notifications
[Notification No. 24/2018
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such proof of export is not produced within the period mentioned in condition (ii), the Nominated Agency shall pay the amount of central tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption.
[Notification No. 27/2018 – Central Tax (Rate) dated 31st December, 2018]
Change in Rate of tax on supply of Services
* Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of Bio-gas plant, Solar power based devices, Solar power generating system, Wind mills, Wind Operated Electricity Generator (WOEG), Waste to energy plants/devices, Ocean waves/tidal waves energy devices/plants will be taxable at 18%
* Supply of Food & Beverage to School & College will be exempted.
* Transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by specif
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sit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana
* Services provided by CG, SG, UT by way of guaranteeing the loans taken by PSUs or undertakings from Banking Companies shall be exempt
* Services provided by IIM will be qualify as educational institution thus remain exempt [Circular -84/01/2019-GST]
* Services provided by rehabilitation professionals recognized under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income- tax Act, 1961 (43 of 1961).
[Notification No. 29/2018 – Central Tax (Rate) dated 31st December, 2018]
Services Notified under Reverse Charge
* Services provided by business facilitator (BF) to a banking company will be liable to RCM
* Serv
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* It is clarified that the Government departments (i.e. Central Government, State Government, Union territory or a local authority) shall be liable to get registered and pay GST on intra-State and inter-State supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by them to an unregistered person
* It is clarified that in case of revision of prices, after the appointed date, of any goods or services supplied before the appointed day thereby requiring issuance of any supplementary invoice, debit note or credit note, the rate as per the provisions of the GST Acts (both CGST and SGST or IGST) would be applicable
* The provisions of section 51 of the CGST Act are applicable only to such authority or a board or any other body set up by an Act of parliament or a State legislature or established by any Government in which fifty-one per cent. or more participation by way of equity or control is with the Government
* It is clarified that as per the
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the CGST Rules.
* It is also clarified that the registered person shall be liable to pay tax under section 9 of the CGST Act from the date of issue of the order in FORM GST CMP-07.
* Provisions of section 18(1)(c) of the CGST Act shall apply for claiming credit on inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the date immediately preceding the date of issue of the order
Circular No. 78/50/2018-GST, dated 31 December 2018
Clarification on export of services under GST
It is clarified that the supplier of services located in India would be liable to pay integrated tax on reverse charge basis on the import of services on that portion of services which has been provided by the supplier located outside India to the recipient of services located outside India. Furthermore, the said supplier of services located in India would be eligible for taking input tax credit of the integrated tax so paid
Circular No. 79/50/2018-GS
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inputs. Tax rate on output supply being less than the rate of inputs is the reason of ITC accumulation for which refund is claimed.
Refund of accumulated ITC of input services and capital goods arising on account of inverted duty structure
* As per proviso to sub-section (3) of section 54, refund of unutilized ITC shall be allowed:
* “Where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies)”
* Inputs, as defined under clause (59) of section 2, means “any goods other than capital goods…”
* Thus, ITC on account of input services and capital goods shall not be included in the value of “Net ITC” for the purpose of Rule 89(5) and hence the same cannot be claimed as refund under section 54(3)
Refund to be allowed on all 'inputs' as the meaning and scope of term 'inputs' is very wide
* Definition of inputs under clause (59) of section 2 reads as follows:
* “Any
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18 allowed in July 2018? What is the amount of compensation cess to be refunded?
* Clarification:
* Circular 45/2018-CGST clarifies that a registered person making export of goods under LUT shall be eligible for claiming the refund of compensation cess paid on inputs used for making such supplies.
* A registered person, being eligible to claim refund of compensation cess paid during the period July 2017 – May 2018, shall calculate the refund amount for each month as per the formula specified in Rule 89(4), i.e.
Refund amount = (Turnover of zero rated supply of goods + Turnover of zero-rated supply of services)*Net ITC/Adjusted Total Turnover
* The sum of the eligible amount calculated above for the period July 2017 – May 2018 should be less than or equal to the amount actually claimed as refund in the month of July 2018.
* Whether refund of compensation cess paid on purchase of coal used for captive generation of electricity which is in turn used for manufacture of goods exp
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es issued by the supplier in previous month but filed in GSTR-3B of current tax period for the purpose of calculation of refund of unutilized ITC filed for the current tax period.
* It contends that the definition of relevant period mentioned in Rule 89(4) restricts the inclusion of the same, which reads as follows:
* “The period for which the claim has been filed”
* Thus, it has been clarified that refund claim filed for the relevant period is for the amount of Net ITC availed and not restricted only to the purchases made during the period. Moreover, section 16(4) also allows the registered person to claim ITC on or before the due date of filing of return for the month of September following the financial year to which the invoice pertains or the date of filing of annual return, whichever is earlier.
* Hence, if the invoice pertaining to the month of September on which ITC has been availed in the GSTR-3B of the month of October, the ITC for refund computation purpose would be
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* It would be incorrect to classify services of printing of pictures under SAC 998912 as the notes to SAC 998912 – Printing and reproduction services of recorded media, on a fee or contract basis specifically excludes such services
Circular No. 85/50/2018-GST, dated 1 January 2019
Whether supply of food and drinks by an educational institution to its students is eligible for exemption
* Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, Sl. No. 7(i) prescribes GST rate of 5% on supply of food and beverages services. Explanation 1 to the said entry states that such supply can take place at canteen, mess, cafeteria of an institution such as school, college, hospitals etc.
* On the other hand, Notification No. 12/2017-Central Tax (Rate), Sl. No. 66 (a) exempts services provided by an educational institution to its students, faculty and staff.
* A supply which is specifically covered by any entry of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 is exemp
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n has not changed due to amendment of section 140(1)
* the transition of credit of taxes paid under section 66B of the Finance Act, 1994 was never intended to be disallowed under section 140(1)
* Under tax statutes, the word “duties" is used interchangeably with the word “taxes” and in the present context, the two words should not be read in a disharmonious manner
* No transition of credit of cesses, including cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975, would be allowed in terms of Explanation 3 to section 140, which shall become effective from the date the same is notified giving it retrospective effect
Order No 2/2018 – Central Tax dated 31 December 2018
* The said order has extended the time period relating to availment of Input tax credit pertaining to FY 17-18 and amendments in the details furnished in form GSTR-1 for FY 17-18 which are briefed below:
Extension of the due date for availing
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ate of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March,2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019.”
Extending the time period to make amendments in details furnished in form GSTR-1 pertaining to FY 17-18
* Section 37(3) of the CGST Act allows rectification of any error or omission, if any in respect of return already filed. Proviso of the said section specifies that the rectification can be made till the filing of Annual return or due date of filing of September return following the financial year, whichever is earlier.
* Second proviso has been inserted via
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