• Key Takeaways on Return Filing from 31st GST Council Meeting
  • The GST Council, in its 31st meeting held at Delhi on 22nd December, 2018, recommended major changes relating to GST Return Filing System. Below are the highlights of major changes:-
  • 1. Single cash ledger for each tax head
  • Electronic Cash Ledgeris like a wallet where taxpayer deposits cash to set off the GST liability. There are total five major heads in Electronic Cash Ledger which are IGST, CGST, SGST/UTGST& CESS. These heads are further divided into 5 minor sub-heads- Tax, Interest, Penalty, Fees, and Others.

    The taxpayer has to deposit cash in correct minor head corresponding with major head to offset a particular tax liability. For e.g. if a taxpayer has to pay late fees, then he/she has to deposit the cash in late fee column of CGST/SGST head. This complicates the whole process as depositing the cash in wrong head whether it is minor (Interest, Penalty etc) or major (IGST, CGST etc),cannot be rectified nor utilized for offsetting liability. The taxpayer has to go through the hectic process of refund for claiming wrongly credited cash amount.

    Recommendation of removing minor heads for each tax head will comfort the taxpayers in depositing and setting off tax liability. The above recommendation is expected to take effect from the date of issue of relevant notification/ circular.

  • 2. New Return Filing System
  • New return filling system will be introduced on trial basis from 1st April, 2019 and on mandatory basis from 1st July, 2019.
    However, till date, no clarification/ explanation has been provided with respect to the new return filing system by GST Council.
    The above recommendation is expected to take effect from the date of issue of relevant notification/ circular
  • 3. Value of “non-GST supply” shall be included in “no supply” column and may be reported in Table 5D, 5E and 5F of FORM GSTR-9.
  • Non-GST Supply: Goods or services on which GST is not leviable are called Non GST supply. Input Tax Credit of inputs and / or input services used in providing non GST supply is not available. Examples of Non-GST supplies are alcohol for human consumption, petroleum products, electricity etc.
  • No Supply: There are certain supplies which are not covered under GST. These are classified under Schedule III of the CGST Act as “Activities or transaction which shall be neither supply of goods or services”. Now, the supply of goods and services made during FY 2017-18 which are neither classified as goods or services under GST law will have to be incorporated in “Non-GST Supply” Column in GSTR-9.
    The above recommendation is expected to take effect from the date of issue of relevant notification/ circular.
  • 4. Waiver of late fee for different GST Returns
  • Late fee will be waived for all taxpayers in case of Form GSTR-1, Form GSTR-3B and GSTR-4 for the months/ quarters July, 2017 to September, 2018 which are furnished after 22nd December, 2018 but on or before 31st March, 2019.
    The above has been implemented through Notification No. 75/2018, 76/2018 and 77/2018-Central Tax, dt. 31-12-2018
  • 5. E-way Bill
  • Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN/NIC make available the required functionality.
    The above recommendation is expected to take effect from the date of issue of relevant notification/ circular.
  • 6. Extension of due dates for furnishing different Forms
  • The extended dates for filing various forms have been provided below:-
  • Form Financial Year/ Months Extended till
    FORM GSTR-9, FORM GSTR-9A and FORM GSTR-9C (annual return and reconciliation statement) 2017-18 30.06.2019
    FORM GSTR-8 (filed by e-commerce operators) October, November and December, 2018 31.01.2019.
    GST ITC-04 (Details of goods/capital goods sent to job worker and received back) July 2017 to December 2018 31.03.2019
  • 7. The above timeline has been implemented by Notification No. 78/2018-Central Tax ,dt. 31-12-2018.Refunds
  • The following type of refunds shall also be made available through Form GST RFD- 01A with certain conditions:
    • Refund on account of Assessment/ Provisional Assessment/ Appeal/ Any Other Order;
    • Tax paid on an intra-State supply which is subsequently held to be inter-state Supply and vice-versa;
    • Excess payment of Tax
    • Any other refund
  • The above recommendation is expected to take effect from the date of issue of relevant notification/ circular.
  • The information contained in this newsletter is solely intended to provide general guidance on matters of interest. Nothing herein constitutes professional or legal advice, nor does any information herein constitute a comprehensive or complete statement of the issues discussed. It is recommended that you seek a professional advice to confirm your understanding on the issues dealt above.