Highlights of 27th GST Council Meeting

0
117

Following are the points of 27th meeting of GST Council held on 4th May 2018:

Return Simplification:

GST Council in its 27th meeting approved principles for filing of new return design. The key elements of the new return design are as follows –

  • One monthly Return: All taxpayers excluding composition dealer and Nil return filer shall file one monthly return. Return filing dates shall be based on the turnover of the registered person. Composition dealers and dealers having Nil transaction shall have facility to file quarterly return.
  • Flow of invoices: Only Sales invoice will be required to be uploaded. Sales invoice can be uploaded by the seller at anytime during the month. Buyer can see the invoices uploaded by the seller. There shall not be any need to upload the purchase invoices.
  • In B2B transactions HSN code will be required to be mentioned.
  • There shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery shall be made from the seller however reversal of credit from buyer shall also be an option available with the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.
  • Uploading of invoice by the seller will be blocked is he defaults in payment of tax above a threshold amount.
  • GSTR 2 and GSTR 3 shall continue to remain suspended.
  • New System of single return filing will be introduced within 6 months.
  • In new return design the dealer will be constantly fed with information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them and if after 6 month also this gap remains than input tax credit will be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods. In other words this provisional credit claimed would be available till 6 months.

 Changes in GST Rate:

  • Concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction, so as to incentivise promotion of digital payment.
  • Imposition of Sugar Cess over and above 5% GST and reduction in GST rate on ethanol is proposed.

Change in the Shareholding Pattern of GSTN:

  • To Acquire  entire 51% of equity held by the Non-Governmental Institutions in GSTN, equally by the Centre and the States governments.

Links to download press release of 27th GST council meeting:

  1. CBIC Press Release dt 04.05.2018 on -Changes in GST Rates
  2. CBIC Press Release dt 04.05.2018 on GSTN
  3. CBIC Press Release dt 04.05.2018 on Return Simplification

 

Leave A Comment

Please enter your comment!
Please enter your name here