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  • CCI AD FROM 5th April 2021

Recommendations of GST council related to law &procedure / Rates

Circular No.ES/147/2019-20                                                          September 21, 2019

To: Members of the Council

Sub: Recommendations of GST council related to law &procedure / Rates

Dear Member,

We would like to inform you that GST Council had held its 37st meeting in Goa under the Chairmanship of Union Finance & Corporate Affairs Minister, Smt. Nirmala Sitharaman on 20th September, 2019. In this regard, you may refer to a Press Release issued by the Ministry of Finance.

The GST Council recommended the following Law & Procedure related changes:

  1. Relaxation in filing of annual returns for MSMEs for FY 2017-18 and FY 2018-19–

  • Waiver of the requirement of filing FORM GSTR-9A for Composition Taxpayers.

  • Filing of FORM GSTR-9 for those taxpayers who have aggregate turnover up to Rs. 2 crores made optional for the said tax periods.

  1. A Committee of Officers to be constituted to examine the simplification of Forms for Annual Return and reconciliation statement.

  1. 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.

  1. Imposition of restrictions on availment of input tax credit by the recipients in cases where details of outward supplies are not furnished by the suppliers in the statement under section 37 of the CGST Act, 2017.

  1. Introduction of a New return system from April, 2020 to give ample opportunity to taxpayers as well as the system to adapt and accordingly specifying the due date for furnishing of return in FORM GSTR-3B and details of outward supplies in FORM GSTR-1 for the period October, 2019 - March, 2020.

  1. Issuance of circulars for uniformity in application of law across all jurisdictions:

  • Procedure to claim refund in FORM GST RFD-01A subsequent to favourable order in appeal or any other forum;

  • 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;

  • 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.

  1. Rescinding of Circular No.105/24/2019-GST dated 28.06.2019, ab-initio, which was issued in respect of post-sales discount.

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

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

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

  1. 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.

Further, a uniform GST rate of 12% on Polypropylene/Polyethylene Woven and Non-Woven Bags and sacks, whether or not laminated, of a kind used for packing of goods (from present rates of 5%/12%/18%) (Press Release).

Please note that the above recommendations would be given effect through relevant Circulars/Notifications which alone shall have the force of law.

Members may kindly make a note of the above recommendations

Thanking you,

Yours faithfully,