On 4th May 2018, the 27th GST council meeting has taken place in which various crucial matters have been discussed and decided accordingly. The matters that have been taken up and discussed in the Meet are as follows:-
1. Simplification of Return filing process – In order to simplify the Return filing process,the following decisions have been taken:-
a. One monthly return for all the taxable registered person except composition dealers and dealers having nil tax liability. Frequency of the date of filing shall be staggered based on the turnover of the registered taxable person.
b. The invoices which have been uploaded by the sellers would be the valid document for claiming input tax credit. The buyers would be able to see the invoices at any time during the month. 4 digit HSN code reporting shall be required to achieve uniformity in the reporting system.
c. In case of non payment of tax by the seller, the input tax available to the buyer shall not be reversed. The Revenue authorities shall recover the said tax from the seller. However, in case of exceptional circumstances like missing dealer, closure of business by seller, the reversal of Input tax credit shall be considered from the Buyer.
d. The Council has initiated the step towards the automated process of recovery of tax and reversal of input tax credit. All the recovery and reversal would be done through online issuance of notices and orders.
e. Unloading of invoices by the seller to pass input tax credit who has defaulted in payment of tax above a threshold amount shall be blocked to control misuse of input tax credit facility. Similar safeguards would be built for newly registered dealers.
f. There will be a three stage transition to the new system. Stage I shall be the present system of filing of return GSTR 3B and GSTR 1. GSTR 2 and GSTR 3 shall continue to remain suspended. Stage I will continue for a period not exceeding 6 months by which time new return software would be ready. In stage 2, the new return will have facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, as case of GSTR 3B now.
2. Increasing Government’s stake in GSTN – Presently the Central and State Governments are holding 24.50% equity shares and the rest of the shareholding are being held by the various Non Government Institutions. Based on the nature of the data being maintained and transacted on the GSTN portal, the Government has decided to convert the GSTN into a fully owned Government company.
3. Incentive for Digital payments – In order to pave a step further towards the less cash economy, the council discussed the proposal of a concession of 2% in GST rate on B2C supplies, for which the payment is made through cheque or digital mode, subject to a ceiling of Rs. 100/- per transaction. The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.
4. Sugar Cess – In view of the record production of sugar and consequent depressed sugar prices, the Council discussed the imposition of sugar cess and reduction in GST rate on ethanol in great detail. The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.
The press release of 27th GST Council meeting is available below for ready reference.
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