Key Recommendations of 35th GST Council Meeting dt. 21 June 2019 (New Delhi)
In its 35th meeting held at New Delhi (dt. 21 June 2019) the GST Council has made certain decisions/ recommendations relating to changes in law and procedure and tax rates on goods and services including consideration of simplified new GST Returns filing system, extension of due dates of GST returns, etc., as detailed here-under:
A. Decisions/ Recommendations relating to changes in law and procedure
The GST Council has recommended the following changes related to law and procedure:
i) In order to give ample opportunity to taxpayers as well as the system to adapt, the new return system to be introduced in a phased manner, as described below:
a) Between July, 2019 to September, 2019, the new return system (FORM GST ANX 1 & FORM GST ANX 2 only) to be available for trial for taxpayers. Taxpayers to continue to file FORM GSTR 1 & FORM GSTR 3B as at present;
b) From October, 2019 onwards, FORM GST ANX 1 to be made compulsory. Large taxpayers (having aggregate turnover of more than Rs. 5 crores in previous year) to file FORM GST ANX 1 on monthly basis whereas small taxpayers to file first FORM GST ANX 1 for the quarter October, 2019 to December, 2019 in January, 2020;
c) For October and November, 2019, large taxpayers to continue to file FORM GSTR 3B on monthly basis and will file first FORM GST RET 01 for December, 2019 in January, 2020. It may be noted that invoices etc. can be uploaded in FORM GST ANX 1 on a continuous basis both by large and small taxpayers from October, 2019 onwards. FORM GST ANX 2 may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX 2;
d) From October, 2019, small taxpayers to stop filing FORM GSTR 3B and to start filing FORM GST PMT 08. They will file their first FORM GST RET 01 for the quarter October, 2019 to December, 2019 in January, 2020;
e) From January, 2020 onwards, FORM GSTR 3B to be completely phased out.
ii) On account of difficulties being faced by taxpayers in furnishing the annual returns in FORM GSTR 9, FORM GSTR 9A and reconciliation statement in FORM GSTR 9C, the due date for furnishing these returns/ reconciliation statements to be extended till 31.08.2019.
iii) To provide sufficient time to the trade and industry to furnish the declaration in FORM GST ITC 04, relating to job work, the due date for furnishing the said form for the period July, 2017 to June, 2019 to be extended till 31.08.2019.
iv) Certain amendments to be carried out in the GST laws to implement the decisions of the GST Council taken in earlier meeting.
v) Rule 138E of the CGST rules, pertaining to blocking of e-way bills on non-filing of returns for two consecutive tax periods, to be brought into effect from 21.08.2019, instead of the earlier notified date of 21.06.2019.
vi) Last date for filing of intimation, in FORM GST CMP 02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, to be extended from 30.04.2019 to 31.07.2019.
B. Decisions/ Recommendations relating to change in tax rate for supply of good and services
The Council has recommended following GST rate related changes on supply of goods and services.
On issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle, the Council recommended that the issue be examined in detail by the Fitment Committee and brought before the Council in the next meeting.
Solar Power Generating Systems and Wind Turbines
In terms of order of the Hon’ble High Court of Delhi, GST Council directed that the issue related to valuation of goods and services in a solar power generating system and wind turbine be placed before next Fitment Committee. The recommendations of the Fitment Committee would be placed before the next GST Council meeting.
Group of Ministers (GoM) on Lottery submitted report to the Council. After deliberations on the various issues on rate of lottery, the Council recommended that certain issues relating to taxation (rates and destination principle) would require legal opinion of Learned Attorney General.