GST

All about 35th GST Council Meeting Overview

The 35^th GST Council meeting held on June 21, 2019 is the first council meeting chaired by the current and the second female Union Finance Minister, Smt. Nirmala Sitharaman. Various amendments are proposed to be made in this meeting for the simplification of GST Rules.

Let us describe the points which were drawn attention to in this meeting;

Key highlights of the 35^th GST Council Meeting

The following are the major highlights of this meeting

• The due date for filling the GSTR-9, GSTR-9A and GSTR-9C for FY 2017-18 is extended by two months. The new date is 31^st August 2019.

• Introduction of Aadhar-enabled GST Registration
  • This change is introduced to reduce paper work and to simplify the GST Registration process.
  • The GST Council has proposed an upgrade for the verification system of taxpayers and the way to register themselves under GST.
  • Under this the Aadhar number has to be linked with the GSTIN
• Tenure of NAA is extended by two years
  • The previous tenure of NNA was due to end by 30 November 2019
  • The council has extended this tenure by two years
  • Therefore, the NNA can take cases if the there is any rate cutting cases. This stipulates that the GST Council is planning to rationalize GST rates.
• The penalty for failing to deposit profiteered amount after 30 days is 10%
• From January 2020 E-Invoicing will start
  • This new system will be applicable from 1 January 2020
  • Applicable only for B2B invoicing
  • No e-way bill will be needed in the case of e-invoice
  • Returns has to be drawn from these e-invoices
•  E-ticketing is compulsory for multiplexes
• The issue of GST rate cuts for electric vehicles is sent to the Fitment Committee for further discussion
•  The rate cut for GST is put on hold for further discussion with the Attorney General of India
• Other extensions of due dates
  • Due date of Form ITC-04 for July 2017-june 2019 is extended to 31 august 2019
  • Due date of Form CMP-02 is extended to 31 July 2019
• E-way bills will be blocked if;
  • GST Returns GSTR-3B/GSTR-4 is not filled for two consecutive tax periods
  • This will be applicable from 21 August 2019, which previously was 21 June 2019

How the 35^th GST Council Meeting held?

The 35^th GST Council meeting was held on June 21, 2019 in New Delhi. This meeting was chaired by present Financial Meeting of the newly elected Government of India. Altogether, twelve agenda items were discussed in this meeting including the minutes of the 34^th Council meeting.

A Glimpse of the Highlights of the 34^th Council Meeting

The 34^th Council meeting^[1] was held on 19 March 2019, New Delhi. The meeting was chaired by then Finance Minister Mr. Arun Jaitley. The key highlights of the meeting are;

Options with respect of ongoing projects: The promoters will be provided with a one-time option to continue to pay their taxes at a rate at which they were paying previously. This is applicable for taxpayers whose projects are still ongoing.

New tax rates: new tax rates will be applicable to new ongoing projects which have exercised the prescribed activities.

Conditions for the new tax rates: The new tax rates includes 1% for construction of affordable and 5% on other than affordable houses will be available under prescribed conditions

Opting for the new tax rates will transition the ITC as per the prescribed methods for the ongoing projects

Treatment of TDR/FSI and long term lease for projects started after 1 April 2019

Amendment in the ITC rules

Disclaimer

The 35^th council made rules regarding the simplifications of GST Rules. These rules will simplify the GST return system for consumers. Steps are taken towards reducing paperwork and reduce hassle for taxpayers when registering themselves under GST. The meeting also resulted in upgrading of upgrade for the verification system of taxpayers. E-ticketing is compulsory for multiplexes to prevent selling of tickets in black.