On 21st June 2019, the 35th GST council meeting was held in New Delhi. It was the first one held under Nirmala sitharaman, the Union finance minister. The finance minister discussed the simplification of GST rules and about bringing more items under the ambit of GST rates.
Generally, the council meeting is held prior to the general elections, but the meeting could not be held because of the election pressure.
Other discussions held were about tax evasion issues, new GST returns filing system, electronic invoices system, anti-profiteering Authority, and others.
The question of setting up an appellate tribunal for all the Union territories and one for the North-Eastern states were also raised and discussed.
There was deliberation held on the reduction of the tax slab on electric vehicles from 12 to 5 percent; however, without having reached any conclusion.
The key highlights of the discussions held in the meeting are the following-
The introduction of aadhar permit for GST registration– the GST registration being troubling in nature due to a lot of paperwork has been soothed down by attempting to reduce the paperwork. This has been done with the introduction of a new system by the GST council for the verification of the taxpayers registering themselves under GST at the same time while generation aadhar number will be linked to GSTIN. Once Aadhaar card is submitted no other documents would be required as proof and authentication can also be done using Aadhaar OTP.
Extension of the GST annual return due date– an official notification has to be made yet, for the extension of the due date for filing GSTR-9, GSTR-9A, and GSTR-9C and the extension is permitted for two months from now, which is up till 31 August 2019.
Penalty for the delay in hoarding profiteered money– GST Council raised the punishment for deferring surpassing over 30 days. A 10% punishment is charged from keeping a profiteered sum. This measure urges the taxpayer to submit the filing on-schedule.
NAA regime- GST council extended the tenure of the National Anti-profiteering Authority to two more years. Thereby facilitating an approach on all the balance pending cases, left previously. NAA possession was given for the GST annual return last date by 30 Nov 2019. Consequently, the authorities are allowed to begin with new cases because of bringing down interest rate issues, where the GST Council intends to streamline the GST rates.
E-billing made mandatory for theaters– in order to curb black ticketing and tax evasion by the theaters the council has decided to implement e-ticketing for theaters with more than one screen. The electronic ticketing system has been approved.
Non filing of GST returns will result in blocked e way bills– the law expressed that where the GST yearly returns in GSTR-3B/GSTR–4 isn’t required to be petitioned for two successive tax periods, e-way charge age impairing accomplished for such citizens and are brought to force from 21 August 2019, rather than 21st June 2019, which was the prior advised timeframe. New GST returns recording methodology would be completely made viable from the first January 2020.
GST appellate tribunal– The GST council expressed for the last time on the legal expert for the Goods and Service Tax Appellate Tribunal and will parley on the petitions that appeared from Central and state charge experts’ in-house dispute resolution framework. The quantity of GSTAT required will be chosen by the state bringing about two courts in a solitary state.
The proposal has been referred to the Fitment Committee for check of the possibility of cut down the GST rates on electric vehicles and electric chargers, and therefore the proposal has been deferred for the following Council meeting. In the present circumstances, there are no progressions in 12% and 28% of the GST rates for electric vehicles and electric chargers.
Suggestions will be made by the fitment committee by the next council meeting regarding the solar power generating systems services, goods valuation rules, placing of wind turbines.
Lottery for a rate cut is put on hold – There was a discussion about the lottery rate cut in one shot and exhibited two pending cases concerning this before the high court and supreme courts. Regardless of these, the issue is alluded back to GST Council by the court, for basic leadership in the wake of counseling the Attorney General of India.
So as to give enough chance to the citizens and also to the system to adjust to the new return framework will be presented in a phased way, being executed in different phases. The subtleties of this new return structures are portrayed as beneath –
Between July 2019 to September 2019, the new return framework (FORM GST ANX-1&FORM GST ANX-2 only) to be accessible for preliminary for citizens. Citizens to keep on recording FORM GSTR-1 and FORM GSTR-3B as at present;
From October 2019 onwards, FORM GST ANX-1 to be made obligatory. Enormous citizens (having a total turnover of more than ₹ 5 crores in the earlier year) to document FORM GST ANX-1 on a month to month premise while little citizens to record the first FORM GST ANX-1 for the quarter October 2019 to December 2019 in January 2020;
For October and November 2019, huge citizens to keep on documenting FORM GSTR-3B on a month to month premise and will record first FORM GST RET-01for December 2019 in January 2020. It might be noticed that solicitations and so on can be transferred in FORM GST ANX-1 consistently both by enormous and little citizens from October 2019 onwards. Structure GST ANX-2 might be seen at the same time during this period yet no activity will be permitted on such FORM GST ANX-2;
From October 2019, little citizens to quit recording FORM GSTR-3B and to begin documenting FORM GST PMT-08. They will record their first FORM GSTRET-01 for the quarter of October 2019 to December 2019 in January 2020;
From January 2020 onwards, FORM GSTR-3B to be totally eliminated.
