Key updates in Goods and Service TaxThe Goods and Service Tax (GST) Council, in its 37th meeting, recommended the following Law & Procedure-related changes in the Goods and Service Tax (GST).Relaxation in filing of Annual Returns (GSTR-9 and GSTR-9A) for Micro, Small and Medium Enterprises (MSMEs) for FY 2017-18 and FY 2018-19 as under:Waiver of filing FORM GSTR-9A for Composition Taxpayers...
Key updates in Goods and Service Tax
The Goods and Service Tax (GST) Council, in its 37th meeting, recommended the following Law & Procedure-related changes in the Goods and Service Tax (GST).
- Relaxation in filing of Annual Returns (GSTR-9 and GSTR-9A) for Micro, Small and Medium Enterprises (MSMEs) for FY 2017-18 and FY 2018-19 as under:
- Waiver of filing FORM GSTR-9A for Composition Taxpayers for the said tax periods;
- Filing of FORM GSTR-9 for taxpayers with aggregate turnover up to Rs. 2 crores made optional;
- To constitute Committee of Officers for simplification of Annual Return and reconciliation statement.
- Extension of filing of appeals against orders of Appellate Authority before the GST Appellate Tribunal as the Appellate Tribunals are not yet functional.
- Imposition of restrictions on availment of Input Tax Credit (ITC) by the recipient in case where outward supplies are not furnished by him.
- Proposal to introduce new system of return filing w.e.f. April 2020 which was earlier proposed from October 2019 in order to give opportunity to taxpayers to adopt new system, Accordingly due dates for GSTR-3B & GSTR-1 are specified from October to March 2020.
- Issuance of circulars for uniformity in application of law across all jurisdictions:
- Procedure to claim refund in FORM GST RFD-01A subsequent to favorable order in appeal;
- Eligibility to file a refund FORM GST RFD-01A for a period and category under which a NIL refund application has already been filed; and
- Clarification regarding supply of Information Technology enabled Services being made on own account or as intermediary.
- Rescinding of Circular No.105/24/2019-GST dated 28.06.2019, ab-initio, which was issued in respect of clarifications on inclusion of post-sales discounts in value of supply in certain cases.
- Aadhaar may become mandatory for claiming refunds
- Imposing reasonable restrictions on passing of credit by risky taxpayers to avoid fake invoices & fraudulent refunds
Changes in GST Rate on Services
Sector-wise rate reduction:
- Hospitality and tourism
To reduce the rate of GST on hotel accommodation service as below: –
| Transaction Value per Unit (Rs) per day | GST Rate w.e.f. 01.10.2019 | GST Rate till 30.9.2019 |
|---|---|---|
| Rs. 1000 and less | Nil | Nil |
| Rs. 1001 to Rs. 7500 | 12% | 18% |
| Rs. 7501 and more | 18% | 28% |
It is proposed to issue notifications giving effect to these recommendations of the Council on 1st October, 2019.
Changes in GST Rate on Goods
The council took the following decisions in respect to rates relating to goods:
GST rates reduction:
| Particulars | Old Rate | New Rate |
|---|---|---|
| Parts of slide fasteners | 18% | 12% |
| Marine Fuel | 18% | 5% |
| Wet grinders | 12% | 5% |
| Dried tamarind and plates & cups made of leaves/flowers/bark | 5% | 0% |
| Cut and polish semi-precious stones | 3% | 0.25% |
Exemptions from GST/IGST
- Imports of specified defence goods not being manufactured indigenously (up to 2024);
- Supply to FIFA & specified persons for organizing Under-17 Women’s Football World Cup in India;
- Supply to Food and Agriculture Organization (FAO) for specified projects in India.
GST rates have been recommended to be increased from:
| Particulars | Old Rate | New Rate |
|---|---|---|
| Goods (covered in chapter 86 of tariff) like railway wagons, coaches, rolling stock | 5% | 12% |
| Caffeinated Beverages | 18% | 28% + 12% Cess |
A uniform GST rate of 12% on Polypropylene/Polyethylene Woven and Non-Woven Bags and sacks, whether or not laminated, of a kind used for packing of goods (from present rates of 5%/12%/18%).
GST concessional rate of 12% during the period 1st July 2017 to 31st December 2018, on pulley, wheels and other parts (falling under Heading 8483) and used as parts of agricultural machinery.
Passenger vehicles of engine capacity 1500 cc for diesel & 1200 cc for petrol with length less than or equal to 4000mm which carries up to 9 persons to attract compensation cess of 3% and 1% respectively.
Note: The rate changes shall be made effective with effect from 1st October 2019.