HIGHLIGHTS OF LAW & PROCEDURE RELATED CHANGES PROPOSED IN GST COUNCIL MEETING HELD ON 20.09.2019

[Ganeshan Kalyani]

1. Filing of GSTR-9A is waived for Composition Taxpayers for FY 2017-18 and FY 2018-19. And, filing of annual return in Form GSTR-9 is made optional for the those tax payers whose turnover is up to ₹ 2 Crores.

2. A Committee of Officers to be constituted to examine the simplification of Forms GSTR-9 and 9C which is filing Annual Return and reconciliation statement.

3. Extension of last date for filing of appeals against orders of Appellate Authority before the GST Appellate Tribunal as the Appellate Tribunals are yet not functional.

4. In order to encourage the supplier to furnish details of outward supply in GSTR-1 the recipient will be allowed to claim input tax credit only if the details are auto populated in his GSTR-2A report. This will ultimately induce the recipient to call the supplier and insist on furnishing the outward supply. 

5. New return system now to be introduced from April, 2020 (earlier proposed from October, 2019), in order to give ample opportunity to taxpayers as well as the system to adapt. Till the time the tax payer will continue to file the return in FORM GSTR-3B and details of outward supplies in FORM GSTR-1.

6. Issuance of circulars for uniformity in application of law regarding refund across all jurisdictions:

a. a procedure to claim refund in FORM GST RFD-01A subsequent to favourable order in appeal or any other forum;

b. eligibility to file a refund application in FORM GST RFD-01A for a period and category under which a NIL refund application has already been filed; and

c. a clarification regarding supply of Information Technology enabled Services (ITeS services) (in supersession of Circular No. 107/26/2019-GST dated 18.07.2019) being made on own account or as intermediary.

7. Rescinding of Circular No.105/24/2019-GST dated 28.06.2019, ab-initio, which was issued in respect of post-sales discount. Treatment of GST on discount given for various reasons post sales was elaborated in the said circular. The scenarios mentioned was not acceptable by the tax payers and hence the need arised to set aside.

8. Suitable amendments in CGST Act, UTGST Act, and the corresponding SGST Acts in view of creation of UTs of Jammu & Kashmir and Ladakh.

9. Integrated refund system with disbursal by single authority to be introduced from 24th September, 2019.

10. In principle decision to link Aadhar with registration of taxpayers under GST and examine the possibility of making Aadhar mandatory for claiming refunds.

11. In order to tackle the menace of fake invoices and fraudulent refunds, in principle decision to prescribe reasonable restrictions on passing of credit by risky taxpayers including risky new taxpayers.

The above changes would be given effect through relevant Circulars/Notifications which alone shall have the force of law.

Reference: Press release of GST Council meeting held on 20.09.2019.