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Minutes of the 26th GST Council Meeting held on 10 March, 2018
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....GST 5. Accounting for provisional settlement of IGST and devolution of balance IGST at the end of any financial year 6. Amendments to Anti-Profiteering Rules 7. Grievance Redressal Mechanism in GST regime in light of recent judgements of Hon'ble High Courts of Allahabad and Mumbai 8. Extension of suspension of reverse charge mechanism under section 9(4) of the CGST Act, 2017, section 5(4) of the IGST Act, 2017 and section 7(4) of the UTGST Act, 2017 and provisions relating to TDS (section 51) and TCS (section 52) 9. Minutes of 6th and 7th Meeting of Group of Ministers (GoM) on IT Challenges in GST Implementation for information of the Council and discussion on GSTN issues 10. Decision of date of reintroduction of e-Way Bill requirement 11. Status of e-Wallet scheme for exports and decision on continuance of payment of IGST through advance authorization, EPCG, etc. / exemption to EOU and SEZ units 12. New System of Return Filing 13. Applicability of Goods and Services Tax on Extra Neutral Alcohol (ENA) 14. Any other agenda item with the permission of the Chairperson i. Consideration of representation dated 22.09.2017 by M/s Honda Siel Power Products as per ....
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....on, there are two models, say, Model A which envisages grant of provisional credit to the recipients for missing supplies and Model B which envisages*'admissibility of input tax credit only if supplier uploads the invoices. The model proposed by Shri Nandan Nilekani is nothing but Model B of option II with a new feature that credit will be allowed even when tax is not paid by the supplier. 14.12.1. The CCT, Gujarat, further stated that the model proposed by Shri Nandan Nilekani was a harsher one, which was not earlier agreed to by the Law Committee. He stated that in this model, too much of power was being placed in the hands of the suppliers. He further stated that in the model proposed by Shri Nandan Nilekani (i.e. revised version of Model B), once an invoice was uploaded by the supplier and accepted by the buyer, the buyer would get credit automatically. However, the structure on which GST has been designed has two elements: (i) the seller uploads the invoices; (ii) the payment of tax against the invoice should have been made. If the proposed model was accepted, where the buyer would get credit on the basis of invoice uploaded by the seller without ascertaining payment of t....
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....istributed to the States on pro rata basis. The criteria can be the proportionate rate of the total amount of the IGST credit hitherto distributed an1ong the States. ' The Council agreed to replace the version of the Hon'ble Minister from Kerala recorded in paragraph 6.5 of the Minutes, with the one proposed above. 4.3. The Hon'ble Minister from Haryana stated that his version recorded as the first sentence in paragraph 24.5 of the Minutes ('The Hon'ble Minister from Haryana stated that similar exemption should be available for his State Government for supplies by Pollution Control Board and HSIDC (Haryana State Industrial Development Corporation') should be replaced with the following: 'The Hon'ble Minister from Haryana stated that the exemption of the share of profit petroleum paid to the Central Government from the purview of the levy of GST was similar to various contracts that the State Goverrm1ents enter into with business entities and the same should also be exempted. The agencies of the State Government of Haryana like HSIIDC (Haryana State Industrial Infrastructural Development Corporation) and Pollution Control Board (PCB) have such contra....
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....credit was being made available provisionally on the basis of missing invoices uploaded by the buyer subject to its acceptance later by the seller. He stated that this model could be acceptable to trade and chartered accountants, but Model B of option II would never be acceptable to the stakeholders. He added that for 98% of taxpayers, average number of invoices to be uploaded may be only 9, but a single chartered accountant or consultant handled returns of 100 to 150 taxpayers, both as a supplier and recipient. He gets all the details from taxpayers just 3-4 days before the due date of return filing, and he would need to verify how many invoices were uploaded and all this would lead to a lot of difficulties. The stakeholders would find it easier to receive a mismatch report and accept reversal of credit if mismatch persisted beyond a period of time, as may be approved by the Council. He stated that the best model would be where the buyer accepts invoices with a mechanism for provisional credit for missing invoices of the buyer. He stated that in the said Model, Departmental intervention would not be needed. He suggested to accept Model A of Option II with provisional credit for th....
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....entioned at paragraph 6 above which are available on the CBEC website, www.cbec.gov.in. Agenda item 3: Decisions of the GST Implementation Committee (GIC) for information of the Council 8. The Commissioner (GST Policy Wing), CBEC, made a brief presentation summarising the decisions of the GIC (attached as Annexure 3 of the Minutes). He stated that GIC took a decision by circulation to extend the time limit to file Form GSTR-3B for December, 2017 by two days, i.e. up to 22-01-2018 (implemented by Notification No.02/2018-Central Tax dated 20 January, 2018) and to postpone the implementation of e-Way bill Rules for both inter-State and intra-State movement of goods due to technical glitches as reported by GSTN and it was decided that the rules would come into force from a date to be notified later (implemented by Notification No. 11/2018-Central Tax dated 02 February, 2018). He further stated that during the 12th GIC meeting a proposal, to set up a Grievance Redressal Mechanism to address technical glitches in GSTN, was discussed in view of the orders of the Hon'ble High Courts of Allahabad and Mumbai. However, only a limited decision was taken on the issue and Member (GST), CB....
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....01A; (iii) rescinding Notification No.06/201 8-Central Tax dated 23 January, 2018 as the IGST Act gave no power to levy late fee on late filing of FORM GSTR-5A(supplier of OIDAR services). The Council took note of the decisions of the GIC. 9. For Agenda item 3, the Council took note of the above decisions of the GIC and approved to insert the following explanation in Rule 138(2A) of e-Way bill Rules: "Explanation - For the purposes of this Chapter, the expression ' railways or rail' does not include the 'leasing of parcel space by railways'." Agenda item 4: Review of Revenue position for the months of January and February, 2018 under GST 10. The Secretary invited Shri Udai Singh Kumawat, Joint Secretary, Department of Revenue [JS (DOR)] to make a presentation on this Agenda item. The JS (DOR) made a presentation, which is attached as Annexure 4 to the Minutes. In the presentation, the JS (DOR) stated that the total revenue collection for the month of January, 2018 was Rs. 88,929 crore and for the month of February, 2018, was Rs. 88,047 crore. He stated that the revenue shortfall for all the States for the month of January was lowest so far (Rs. 6,671 crore....
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.... into the States of Maharashtra, Madhya Pradesh and West Bengal on the basis of 'C' Form in the year 2016-17 in comparison with value of goods entering into the States after GST was rolled out and this was done by using the figures of IGST used by taxpayers for payment of SGST with some extrapolation and analysis of those figures. The analysis showed that for the State of West Bengal, the value of goods appears to be under reported as shown entering the State for the period of July, 2017 to March, 2018 (with extrapolation) was approximately to the tune of Rs. 50,000 crore; in Madhya Pradesh, it was around Rs. 60,000 crore and in Maharashtra, it was around Rs. 1,50,000 crore. He stated that these were huge amounts and that the other States could carry out a similar exercise to examine taxpayer-wise under reporting of goods coming into their States during pre and post-GST regime. He stated that this analysis showed the need for enhanced enforcement activity. 10.2. The Hon'ble Minister from Jammu & Kashmir stated that States were not able to do a detailed analysis as they were only getting dumped data. The maximum improvement as shown in the presentation is depicted by th....
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.... proper data analysis and that its results should be brought before the Council to formulate policies. The Secretary informed that GSTN and CBEC had started detailed data analytics across a number of data sets available with them. The outcome of preliminary data analysis had given some interesting insights hike variance between the amount of IGST and Compensation Cess paid by importers at Customs ports and input tax credit of the same claimed in GSTR-3B; and major data gaps between self-declared liability in FORM GSTR-1 and FORM GSTR-3B. The Secretary further stated that an Analytic and Research Management Wing had been created in CBEC and they would be making regular presentations to him on specific issues and statistics. The Hon'ble Minister from Kerala also emphasised the importance of data analytics and research and stated that the Economic Survey had given a lot of insights through data analytics. The Hon'ble Chairperson observed that all relevant data must be shared with the States. 10.4. Shri Tuhin Kanta Pandey, Principal Secretary (Finance), Odisha, stated that the way the analysis had been presented appeared to indicate that shortfall was equal to enforcement or l....
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....ated beyond the assured growth rate of 14%. The JS (DOR) stated that in the case of State of Kerala for the months of November and December, 2017, the amount which was settled provisionally was greater than the States' compensation requirement and that is why no compensation was released for those months and there were other such States as well. The Hon'ble Minister from Kerala stated that during the last meeting of the Council, discussion was held only with regard to provisional release of IGST amount and it was not clear how it got linked to compensation. The JS(DOR) stated that the money provisionally released goes in the form of SGST, hence it is calculated as State revenue for purpose of release of compensation. The Hon'ble Minister from Jammu & Kashmir stated that in such a situation, the Centre should not collect this IGST in instalments next year. The Hon'ble Deputy Chief Minister of Delhi stated that his State would lose revenue if IGST was taken as part of the Consolidated Fund of India and devolved to States because they were not covered under the 42% devolution formula. He added that the distribution of the IGST amount must be settled separately for Delh....
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.... having no shortfall would not be getting compensation. Be stated that this amount should either be treated as revenue of States or compensation should be given. The Secretary stated that the Union Controller General of Accounts (CGA) had suggested to do adjustment in the next financial year against the final settlement. The Hon'ble Minister from Haryana advised that one should stick to the provisions of the Compensation Act, which provides that compensation should be paid after every two months. He stated that provisional settlement should be done after the payment of compensation, otherwise there would be a violation of law. The Secretary stated that there would be no violation of law as the question of giving compensation would arise only if there was a shortfall in revenue of States after taking into account the 14% assured rate of revenue growth. 10.10. The Hon'ble Minister from Haryana stated that in the next financial year, there would be need for additional compensation as additional14% growth would be added and this would have to be paid after every two months. The Hon'ble Chairperson stated that it was, therefore, necessary to keep something in compensation k....
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....ary stated that all money received by Government of India would form part of tl1e Consolidated Fund of India unless it is specifically excluded by the Constitution. The Constitution provides that the part of IGST which is used for settlement of SGST will not form part of Government of India's kitty. By implication, the rest of the money would remain in the Consolidated Fund of India. 10.12. The Hon'ble Deputy Chief Minister of Bihar invited officers from the Council to visit the State of Bihar and analyse the reasons for shortfall in revenue. The Secretary informed that during the officers meeting held on 9 March, 2018, the Chief Economic Advisor had offered to do a diagnostic for Bihar and for a few other States. Shri Rajendra Kumar Tiwari, ACS, Uttar Pradesh, stated that the amount of shortfall in revenue shall increase and he stressed that data should be made available to the States at the earliest. The Secretary stated that he proposed to set up a group of officers to examine why the IGST settlement was not taking place. The ACS, Uttar Pradesh stated that if the amount received as advance had to be repaid, then that may not be treated as revenue of the States. Ms. Smar....
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....t of formulation for 'Explanation to Rule 134, which, after amendment, reads as follows: "Explanation -any other person organisation or entity alleging, under sub-rule (1) of Rule 128, that a registered person has not passed on the benefit to be treated as 'interested party' to file application before NAA''. The Council agreed to the amendments to the Anti Profiteering Rules as proposed in the Agenda notes along with modification as indicated above. 15. For Agenda item 6, the Council approved the changes in the Anti-Profiteering Rules, as proposed in the Agenda notes, with the following further modification in ' Explanation' to Rule 134: "Explanation - any other person alleging, under, sub-rule (1) of Rule 128, that a registered person has not passed on the benefit to be treated as 'interested party' to file application before NAA". Agenda item 7: Grievance Redressal Mechanism in GST Regime in light of recent judgments of Hon'ble High Courts of Allahabad and Mumbai 16. The Secretary informed that this Agenda item was discussed in detail during the officers meeting held on 9 March, 2018. He recalled that this Agenda item was introduced in ....
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.... the reverse charge mechanism was meant to be an anti-evasion tool to prevent leakages and it should not be postponed indefinitely. He added that the reverse charge mechanism also existed under VAT and there must be a definite time frame for introducing reverse charge mechanism in GST. He suggested that reverse charge mechanism for composition taxpayers should not be postponed and for other categories of taxpayers, it should be introduced at the earliest possible and two months' extension seemed fair. 18.2. The Hon'ble Minister from Rajasthan stated that for the composition taxpayers, there was a decision by the Council to increase the threshold of annual turnover to Rs. 1.5 crore but it had not been implemented as yet. The Secretary stated that this change would be done along with other changes to be carried out in the GST law, including the changes relating to return filing. He pointed out that the experience indicated that majority of composition taxpayers had declared an average turnover of Rs. 5 lakh per quarter, which amounted to an annual turnover of Rs. 20 lakh, and in this light, there appeared to be no point at this stage to increase the annual turnover threshold....
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....everse charge mechanism could be worked out for composition taxpayers 1st of July, 2018. He further stated that as far as IT system was concerned, even under the present system, there was full mechanism available for inputing of invoices related to reverse charge, so no difficulty was foreseen with regard to IT system. He added that the reverse charge mechanism was not proposed to be started for non-composition taxpayers at this juncture. He also stated that under VAT, reverse charge mechanism was meant only for composition taxpayers in most of the State Laws. The Hon'ble Minister from Kerala stated that in all States, reverse charge mechanism was applied in the form of purchase tax. Shri Ritvik Pandey, Finance Secretary, Karnataka, stated that there was no purchase tax in the State of Karnataka. Shri Sanjeev Kaushal, Additional Chief Secretary, Haryana, stated that in Punjab and Haryana, the entire purchase tax was under reverse charge including that on purchase of cotton. 18.5. The Secretary stated that there was some criticism that reverse charge mechanism was against informal sector as due to this provision, people would refrain from buying from unregistered sellers. In vi....
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....ism was brought on all, then indirectly, one would be bringing to an end the composition scheme and the exemption threshold limit. Therefore, some other mechanism needed to be worked out. 18.8. The Principal Secretary (Finance), Odisha, stated that if a composition taxpayer purchased from an unregistered seller, he would pay full tax under reverse charge mechanism as would have been the case as if he was buying from a registered seller. However, on his own value addition, he would pay only 1% of tl1e value of his turnover. The Secretary observed that under VAT, composition scheme was only for traders whereas in the GST regime, it was proposed to be brought in for manufacturers as well as traders and also some service providers. The only additional benefit available to composition taxpayers under the GST regime was procedural simplification. He observed that offering composition scheme to medium and small-scale taxpayers up to annual turnover of Rs. 1.5 crore on the lines of the exemption under Central Excise might not be very effective and some other way would need to be found out to give tax benefit to small scale enterprises. The Hon'ble Deputy Chief Minister of Bihar observ....
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....ers of the GoM. The Secretary stated that in view of this discussion, the Council may approve to defer the introduction of reverse charge mechanism by three months and a GoM consisting of the five Hon'ble Ministers would examine the issue in detail. 18.10. Shri Prakash Kumar, Chief Executive Officer (CEO), GSTN, stated that for TCS, it was envisaged that data would go from GSTR-1 to the taxpayer's return and since GSTR-2 was on hold, the date for TCS implementation should be decided only after the new return module was finalised. The Secretary stated that TDS could be implemented from 11 July, 2018 and for TCS, the issue could be reviewed further. 18.11. The Hon'ble Minister from Tamil Nadu in his written speech suggested that the Council may consider granting a one-time amnesty to the taxpayers whose registration had been cancelled for failure to migrate to GST within the given time frame. This would facilitate them to file GST returns and pay tax or the period during which their provisional registration was in force. He also suggested to enable the taxpayers to file GST TRAN-1 as a onetime measure. 19. For Agenda item 8, the Council approved the following: - (i) t....
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....remaining States from 30 April 2018. He suggested that the GIC could be delegated the responsibility to tweak dates for introduction of intra-State e-Way bill system, if so required. 22.1. The Secretary further informed that during the officers meeting held on 9 March, 2018, it was agreed that the States falling in the first lot would be Andhra Pradesh, Kerala, Uttar Pradesh, Telangana and Gujarat. He stated that the CCT, Karnataka, had informed that his State had implemented the e-Way bill system from September, 2017 and would like to continue with the same. He added that during the officers meeting held on 9 March, 2018, the States of Telangana and Uttar Pradesh had also expressed that they would like to continue their system of e-Way bill under their State law until the national e-Way bill Rules were brought into force. The Secretary stated that in the second lot, the States that would implement the e-Way bill system are Bihar, Haryana, Jharkhand, Uttarakhand and Madhya Pradesh. He added that during the officers meeting held on 9 March, 2018, the CCT, Tamil Nadu, had informed that instead of being part of the second lot as mentioned in the agenda item, they would like to be par....
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....e rate of 10%. If Customs duty was increased, smuggling would start in a big way. He stated that it was better to allow import of gold through formal method instead of through informal method. The Hon'ble Minister from Kerala stated that in his State, the annual revenue from gold had been reduced from Rs. 650 crore to Rs. 200 crore. He stated that his State would prepare a note on this issue after full data on supplies under GST was made available. 22.4. The Hon'ble Minister from Tan1il Nadu in his written speech expressed the hope that GSTN would put in place a robust IT infrastructure before the actual implementation of the e-Way Bill system. 23. For Agenda item 10, the Council approved the following: (i) to start e-Way bill system for inter-State movement of goods on all-India basis from 1 April, 2018; (ii) to introduce intra-State e-Way bill system in a staggered manner and the States shall implement it as per the following time schedule: (a) first lot of States consisting of Andhra Pradesh, Kerala, Uttar Pradesh, Telangana and Gujarat from 15 April, 2018; (b) second lot of States consisting of Bihar, Haryana, Jharkhand, Uttarakhand and Himachal Pradesh from 2....
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....1, the Council approved the following: (i) To defer the implementation of e-Wallet scheme by six months i.e. up to 1 October, 2018; (ii) To extend the present dispensation in terms of exemptions etc., which is currently available till 31 March, 2018 for a further period of six months i.e. up to 1 October, 2018. Agenda item 12: New System of Return Filing 26. The Secretary invited the Chairman, GSTN, to make opening remarks to be followed by a presentation by Shri Manish Sinha, Commissioner (Central Excise), CBEC. The Chairman, GSTN in his opening remarks, stated that the new return design had been finalised after detailed and extensive meetings, several rounds of discussion including discussion with the team of Shri Nandan Nilekani, Co-founder and Non-Executive Chairman of the Board of Directors of Infosys Ltd. He stated that the design was then discussed with the GoM on IT related Challenges and subsequently during the officers meeting held on 9 March, 2018. He pointed out that the major differences in the model proposed by Shri Nandan Nilekani and that by the Committee on Return related to availment of provisional input tax credit by recipient; linkage between availment of....
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.... proposed to be done offline. 26.2. The Hon'ble Minister from Kerala stated that the supply details filed in GSTR-1 could be auto-populated in GSTR-2 and samples could be taken to see whether the two matched. The CEO, GSTN, stated that since GSTR-2A was being auto-populated from GSTR-1, the same would match. He explained that the Commissioner (Central Excise), CBEC was referring to a system of return filing where buyer uploaded details of both sales and purchases and it was matched by the system. In such cases, the percentage of mismatch was 30% to 40% based on the experience of four States (Karnataka, Andhra Pradesh, Gujarat and Maharashtra) who had adopted this system of return filing. The Chairman, GSTN, stated that there was agreement with respect to the suggestion by Shri Nandan ijilekani that there should be only one-way traffic for invoice upload i.e. by the supplier. There was convergence that only the seller would upload the invoices. The recipient would be able to continuously view the invoices uploaded by the supplier and its tax payment status and an invoice locking facility could be made available as an IT facilitation measure. An offline tool would be provided to....
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....ise), CBEC, further stated that it was important to maintain a linkage between tax payment and input tax credit availment and, therefore, the concept of provisional credit was very important. He stated that as per the present data, tax payment by a taxpayer was in the ratio of 3:1 for input tax credit and cash. This meant that a taxpayer if required to pay tax of four rupees, was paying the same by utilising three rupees as input tax credit and one rupee in leash. He stated that if 20% of invoices were not uploaded, this would lead to an extra requirement of Rs. 50, 000 crore in cash for tax payment, which would be a very big burden on the economy. He informed that during the meeting of the officers held on 9 March, 2018, a discussion took place regarding a provision to block the facility of invoice uploading for those sellers who had defaulted in payment of tax. He stated that this approach could be more problematic and could lead to penalising multiple buyers of the concerned seller. He added that it was proposed to continue with GSTR-3B and GSTR-1 returns for a period of three months after 1 April, 2018. 26.5. Summarising the presentation, the Secretary stated that the model pr....
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....ment of filing monthly return would be a problem for small traders. The Secretary stated that currently small traders were filing GSTR-1 return quarterly and GSTR-3B return on monthly basis and 30% of GSTR-3B returns were nil returns. The nil return filers could file their returns by a simple click of a button. He stated that if small taxpayers were given three months' time to file returns, then monthly matching of input tax credit would not be possible. Further, the data of settlement of tax for States also came from returns and if returns for small taxpayers was filed on quarterly basis, settlement of funds to the States would also suffer. It was, therefore, desirable that every taxpayer should file one monthly return. 26.7. The Hon'ble Minister from Jammu & Kashmir stated that given the track record of implementation of the IT system, he was reluctant to go along with the proposal. He added that Shri Nandan Nilekani had a track record, he had presented his view through a model and that model was further changed by people whom he did not know and trust. Either Shri Nandan Nilekani should have been given a chance to defend himself or an independent group should have been ....
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....on uploading invoices and not paying taxes, he should be blocked from further uploading invoices. He stated that some such other interventions could also be considered. He further observed that the scheme of provisional credit could also be abused and undoing such abuse could be a time-consuming process. He stated that some caveat regarding uploading of invoices could be introduced for buyers. 26.9. The Secretary raised a question whether payment of tax should be delinked from availment of input tax credit, as suggested in the model of Shri Nandan Nilekani. Another issue to be considered was whether the buyer should be completely absolved of the responsibility from any wrong availment of input tax credit due to non-payment of tax by the seller. He stated that if the tax system was so designed that the tax administration would hold only the sellers accountable, it could lead to reckless trading. Buyers would have no stake in the entire scheme and they would only procure invoices and take input tax credit on this basis. He observed that trade would be taking place across the State borders and IGST would be flowing accordingly. Without a self-policing mechahism, it would be very diff....
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....tax credit to B would also be blocked due to default in tax payment in respect of supplies made to buyer A. The fourth issue related to limitation in the number of tax officers who could take up audit and scrutiny. He stated that in one year, the Central tax administration was able* to do audit of about 40,000 units, return scrutiny of about 30,000 units and anti-evasion cases of about 10,000 units. He stated that the maximum intervention possible by the Central administration would be about 1, 00,000 cases. States could possibly make about 2,00,000 interventions in a year as they have similar number of assessing officers but double the number of support staff. This implied that the Central and the State administrations put together could intervene in only about 3, 00,000 cases in a year against a taxpayer base of close to one crore. It was in this context that a mechanism of self-policing was very important. The fifth issue was in respect of IGST settlement. If there was a default, then the Centre would lose the entire amount already transferred to the State. He suggested that instead of the Centre losing the entire amount, 50% of such losses should also be borne by the States. Th....
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....njab observed that the tenor of discussion reminded him of a quotation from a dictator in Pakistan: "Democracy only works in cold countries and not in hot countries". The Hon'ble Minister from Kamataka stated that this was a very important Agenda item and before taking a final decision, both the models could be looked into more deeply and further simplified. He stated that the final outcome should satisfy the concerns of trade as well as the tax administration. The Hon'ble Deputy Chief Minister of Bihar observed that the GoM on IT Challenges could not arrive at any conclusion on the issue and the Council could take a decision. 26.14. The Secretary stated that once the model is finalised, GSTN would also need to be given a timeframe of three months to develop the requisite software. He suggested that the return model could be finalised during the next meeting of the Council and in the meantime, the GoM on IT Challenges in GST Implementation could further work on this issue. He suggested that officers from other States could also join in the discussions of the GoM. The Hon'ble Chairperson observed that GoM could invite more officers and persons having expert knowledge ....
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....proposal in this Agenda item had arisen on account of the Writ Petition filed before the Hon'ble High Court of Delhi where the Hon'ble Court had directed that the GST Council could appropriately consider the Petitioner's pending representation on the differential GST rates between its products, i.e. petrol/kerosene engines and fixed speed diesel engines below 15 HP. The Petitioner, M/s Honda Siel Power Products Ltd., in its representation dated 22 September, 2017 addressed to the Secretary, Department of Revenue, Union Ministry of Finance, had stated that differential rates of tax between petrol/kerosene engines and fixed speed diesel engines not exceeding 15 HP at the rate of 28% and 12% respectively was arbitrary and founded on erroneous logic. The Secretary informed that views of the members of the Fitment Committee were sought on this issue and they did not favour equalisation of the rate of tax on these two products. The recommendation of the Fitment Committee was that there was no case for reduction in the rate of tax on petrol/kerosene engines up to 15 HP from the present rate of 28% to 12% to bring it at par with the applicable rate of tax on fixed speed diesel ....
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..... Agenda item 14(iii): Appointment of Deputy Commissioner as member of Authority for Advance Ruling- Amendment in Rule 103 of the CGST Rules, 2017 34. The Secretary informed that this Agenda item proposed to amend Rule 103 of the CGST Rules, 2017 to permit appointment of officers up to the rank of Deputy Commissioner as members of the Authority for Advance Ruling. This was proposed because the State of Manipur and the Union Territory of Puducherry had represented that they had no post of Joint Commissioner in their State/UT. The Secretary informed that this proposal was discussed during the meeting of the officers held on 9 March, 2018 wherein it was recognised that making a change in the Rule would not solve the problem of these two administrations as the CGST and the SGST Acts had several other provisions such as issuing authorisation of search and seizure tmder Section 67 and authorising access to business premises under Section 71, where the power was vested in an officer not below the rank of Joint Commissioner. He added that during the officers meeting held on 9 March, 2018, the State of Manipur informed that they had already created the post of two Additional Commissioner....
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.... The Hon'ble Minister from Kerala raised the issue regarding making available State specific data up to the end of the financial year. The CEO, GSTN, stated that they had available with them invoice level data by way of GSTR-1 as well as data of GSTR-3B. These were automatically going to Model 1 States, which also included the State of Kerala. He added that GSTR-2A was generated on the basis of GSTR-1 and that two weeks back, they had made this data available through API (Application Programming Interface). He informed that Kerala officers could now see supplies received by buyers located in Kerala from sellers located anywhere in India. 39. The Hon'ble Deputy Chief Minister of Gujarat stated that the stakeholders had reported that the exporters were facing difficulty in obtaiqing tax refund on exports. The Secretary inforn1ed that the refund situation with respect to both IGST and input tax credit was reviewed during the officers meeting held on 9 March, 2018. He added that he had requested the States to expedite the refund of input tax credit. The Hon'ble Deputy Chief Minister of Gujarat stated that according to his information, the State officers were paying refund ....
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.... INITIALS MINUTE BOOK Annexure 2 List of Officials who attended the 26th GST Council Meeting on 10 March, 2018 State/Centre Name of the Officer Charge NS SI No 1 Govt. of India 2 Govt. of India 3 Govt. of India 4 Govt. of India 5 Govt of India 6 Govt. of India 7 GST Council 8 Govt. of India 9 Govt. of India 10 Govt. of India 11 Govt. of India 12 Govt. of India 13 Govt. of India 14 Govt. of India 15 Govt. of India 16 Govt. of India 17 Govt. of India 18 Govt. of India 19 Govt. of India 20 Govt. of India 21 Govt. of India 22 Govt. of India 23 Govt. of India 24 Govt. of India 25 Govt. of India 26 Govt. of India 27 Govt. of India 28 Govt. of India Dr. Hasmukh Adhia Ms Vanaja N. Sarna Shri Mahender Singh Dr. John Joseph Dr. A B Pandey Shri S.C. Garg Shri Arun Goyal Shri G. C. Murmu Shri P.K. Mohanty Shri P.K. Jain Shri Sandeep Bhatnagar M. Shri Alok Shukla Shri Amitabh Kumar Shri Upender Gupta Shri Udai Singh Kumawat Shri Manish Kumar Sinha Shri G.D. Lohani Shri Yogendra Garg Shri S.K. Rehman Shri Sandip Kumar Shri S. K. Rai Shri D.S. Malik Ms Rajesh Malhotra Shri Saurabh Singh Nagesh Shastri Shri Nagendra Goel Shri Parmod....
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....der Secretary Under Secretary Under Secretary Superintendent Superintendent Superintendent Inspector CHAIRMAN'S INITIALS MINUTE BOOK 59 GST Council Shri Anis Alam Inspector 60 GSTN Shri Prakash Kumar CEO 61 GSTN Ms Kajal Singh EVP (Services) 62 GSTN Shri Vashistha Chaudhary SVP (Services) 63 GSTN Shri Jagmal Singh VP (Services) Govt of India, 64 Shri Kishori Lal Commissioner, Chandigarh CBEC, (Zones) Govt of India, 65 Shri Pradeep Kumar Goel Commissioner, Meerut CBEC, (Zones) Govt of India, Shri Neerav Kumar 66 Commissioner, Bhopal CBEC, (Zones) Mallick Govt of India, 67 Shri Pramod Kumar Commissioner, Delhi CBEC, (Zones) Govt of India, 68 Shri Javed Akhtar Khan Commissioner, Ahmedabad CBEC, (Zones) Govt of India, 69 Shri G. V. Krishna Rao Pr. Commissioner, Bengaluru CBEC, (Zones) Govt of India, 70 Shri Vijay Mohan Jain Commissioner, Rohtak CBEC, (Zones) Govt of India, 71 Shri Virender Choudhary Commissioner, Vadodara CBEC, (Zones) Govt of India, 72 Shri B.K. Mallick Commissioner, Kolkata CBEC, (Zones) Govt of India, 73 Shri Milind Gawai Commissioner, Pune CBEC, (Zones) Govt of India, Pr. Commissioner, 74....
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....khand Shri Brajesh Kumar 112 Karnataka Shri Ritvik Pandey 113 Karnataka 114 Kerala Shri Srikar M.S. 115 Madhya Pradesh 116 Madhya Pradesh 117 Maharashtra 118 Maharashtra 119 Manipur 120 Meghalaya 121 Meghalaya 122 Mizoram 123 Mizoram 124 Mizoram 125 Odisha 126 Odisha 127 Odisha 128 Puducherry 129 Punjab 130 Rajasthan 131 Rajasthan 132 Rajasthan 133 Rajasthan 134 Sikkim 135 Sikkim CHAIRMAN'S INITIALS 136 Tamil Nadu Dr. Rajan Khobragade Shri Raghwendra Kumar Singh Shri Sudip Gupta Shri Rajiv Jalota Shri Dhananjay Akhade Shri Hrisheekesh Modak Shri L Khongsit Shri K. War Shri Vanlalchhuanga Shri R. Zosiamliana Shri C. Vanlalchhuana Shri Tuhin Kanta Pandey Shri Saswat Mishra Shri Sahadev Sahoo Shri G. Srinivas Shri V.K Garg Shri Praveen Gupta Shri Alok Gupta Ms Meenal Bhosle Shri Ketan Sharma Smt. Dipa Basnet Shri Manoj Rai Shri T.V Somanathan Page 34 of 51 Commissioner, CT Addl. Commissioner of State Taxes State Tax officer Finance Secretary (Budget & Resources) Commissioner, CT Commissioner, State GST Dept. Commissioner, CT Dy. Commissioner, CT State Tax Commissioner Jt. Commissioner, State Tax Commissioner, CT Jt. ....
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....0 of 2018 01 to 09 of 2018 GST (Compensation to the States) Act Compensation Cess (Rate) 01 of 2018 Circulars Under the CGST Act 29 to 31 and 33 of 2018 Decisions of GIC by circulation NATION TAX MARKET Extension of time limit to file FORM GST 3B for December, 2017 by two days i.e. upto 22.01.2018 Notification No 02/2018- Central Tax dated 20th January 2018 was issued Postponing the implementation of E-Way Bill Rules for both inter- Sate and intra-State movement of Goods due to technical glitches as reported by GSTN. It was decided that the rules will come in force from a date notified later. Notification No 11/2018 - Central Tax dated 02nd February 2018 was issued Page 37 of 51 ay CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Decisions of the 12th GIC Meeting INATION TAX MARKET It was proposal to set up a Grievance Redressal Mechanism to address technical glitches in GSTN. . In view of the orders of the Hon'ble High Courts of Allahabad & Mumbai and specific direction of the Hon'ble High Court of Mumbai that a grievance redressal mechanism be put in place to address the problems faced by the taxpayers due to glitches in GSTN. ✔Mem....
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....ted in few more cases. Notification No 12/2018 - Central Tax dated 07th March 2018 was issued Change proposed in Officer's Meeting held on 09.03.2018 NATION MARKET Amendments in the e-Way bill rules proposed in Officer's meeting held on 09.03.2018 Facility extended to Railways should not be extended to the goods transported by persons other than railways - Explanation may be inserted below Rule 138(2A): Explanation. For the purposes of this chapter, the expression 'railways or rail' does not include the 'leasing of parcel space by railways'. CHAIRMAN'S INITIALS Page 39 of 51 CHAIRMAN'S INITIALS MINUTE BOOK Decisions of the 13th GIC Meeting (3/4) Amendments in CGST Rules Amendment Date of filing FORM GST TRAN-2 is 31st March, 2018 Change in the declaration form to be submitted in FORM GST RFD-01A Reason for Amendment There is no last date for furnishing FORM GST TRAN-2 in the CGST Rules. • FORM was made available on the common portal only from 11th December, 2017. ⚫ Declaration was only to disallow refund if drawback of central tax, central excise or service tax or integrated tax was availed. • Action Rule 117(4)(b)(iii) a....
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.... 13.10.2017 & notification No. 38/2017- Union Territory Tax (Rate), dated 13.10.2017 respectively. The provisions of section 9(4) of the CGST Act, 2017, section 5(4) of the IGST Act. 2017 and section 7(4) of the UTGST Act, 2017 may remain suspended till 30.09.2018 as proposed amendments to GST Laws are yet to be finalised. Page 41 of 51 CHAIRMAN'S INITIALS M CHAIRMAN'S INITIALS LE MINUTE BOOK INATION Agenda No. 8: Extension of certain provisions (2/2) MARKET Extension of suspension of provisions relating to TDS/TCS Provisions relating to deduction/collection of tax at source (TDS/TCS) under sections 51 and 52 of the CGST Act. 2017 have not yet been notified. âš« The GST Council, in its 22nd meeting held on 06.10.2017, recommended that 9 the deduction/collection of tax shall commence from 01.04.2018. The Law Review Committee has in its report recommended that the provisions relating to TDS/TCS may be kept in abeyance till the system stabilises. âš« TDS/TCS provisions may be kept in abeyance for a further period of six months, until 30.09.2018. Agenda No. 14(iii): Advance Ruling Authority INATION TAX MARKET Appointment of Deputy Commissioner as memb....
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....ame of the State Percentage Percentage No. shortfall January in shortfall 2018 February in 2018 revenue revenue 10. Uttar Pradesh 13.1 18.7 11 Kerala 16.3 21.5 12. West Bengal 16.5 15.8 13. Sikkim 16.6 29.3 14. Rajasthan 17.3 22.7 15. Assam 17.9 20.6 16. Meghalaya 18.8 26.2 17. Goa 19.1 22.9 ल Page 45 of 51 CHAIRMAN'S INITIALS MINUTE BOOK STATES SHOWING MAXIMUM IMPROVEMENT UPTO FEBRUARY, 2018 Name of Percentage Percentage Percentage Sl. No. the State shortfall in shortfall in reduction in revenue in revenue in shortfall in August February, February, 2018 vis- 2017 2018 à -vis-August 2017 1. Mizoram 47.7 -51.1 98.8 2. Manipur 46.6 -29.7 76.3 3. Nagaland 50.5 -1.1 51.7 4. Arunachal 42.6 -6.4 49.0 Pradesh 5. Tripura 59.4 24.3 35.1 6. Meghalaya 52.2 26.2 26.0 7. J&K 63.9 40.8 23.0 CHAIRMAN'S INITIALS STATES SHOWING MAXIMUM IMPROVEMENT UPTO FEBRUARY, 2018 - CONTD... 4 SI. Name of Percentage Percentage Percentage No. the State shortfall in shortfall in reduction in revenue in revenue in shortfall in August 2017 February, 2018 February, 2018 vis- à -vis- August 2017 8. ....
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....34 434 42.8 25.6 26.8 28.6 27.7 28.6 148 324 801 705 45.2 41.2 27.9 393 99.2 295 329 123 673 1437 743 348 275 220 220 189 173 22.7 121 550 820 1096 523 55.6 415 40.5 39.3 402 40.0 121 29 298 428 545 46.8 50.0 37.7 43.8 351 44.6 39 809 1430 689 3L3 340 144 224 227 169 21.5 98 168 530 389 93 F 474 318 294 28.7 295 266 70 33 62 114 523 515 595 436 515 47 B 48.1 42 105 2739 3044 313 28.3 251 25.9 30. 257 28.5 20 409 1258 48.4 32.0 300 405 453 59.2 43.5 19 89 396 960 49.9 483 468 426 488 41.4 50.2 -03 1976 535 1687 6426 1710 950 5140 3357 4287 1477 5774 905 108 11.1 26 80 5.7 79 119 -25 530 1440 400 175 #E -0.2 84 143 5.0 20 -35 1581 2939 3347 13.5 271 172 15.5 181 152 28.7 -51 11 1130 5019 2902 733 22 9 10 2834 בקה 2.0 4.A 10. 55 84 383 #A 19 13 -152 43.0 20.7 9.0 211 108 28.3 425 Tors 42979 2127414764 Shorofalner 36857 20442 13205 33647 6221 15717 283 240 125 209 202 161 21.7 9552 Page 47 of 51 у CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Annexure 5 Presentation on GST Return Filing GST Return Filing राषà¥....
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....ny. (Auto-reversal only if programmable, within acceptable limits and approved by the Council.) Note: GST Council may extend the rectification period or the date for the reversal of input tax credit. INATION TAX MARKET Page 49 of 51 ру CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK April May June July August Continuous viewing of P A April invoices. /Pay Add missing for Add missing N Add missing /Pay for April 1/Pay for April Reconcil Y April invoices invoices invoices -iation D Stateme D -nt. 1rd Apr Revenue gain due to addition of missing April invoices and tax payment (self policing mechanism). Continuous upload/acceptance of invoices Uptond Acrop by Bij 30 Apr 10th May Oct Challenge is auto-reversal of Tinput tax credit. GSTR-3 Continued Accept by Boyer Accept, Finalize, Pay & File ⚫IT Model: Continuous upload and acceptance as part of business cycle. No return. ⚫ITC available only on supplier uploaded invoices. No provisional credit to be given. •ITC linked to admittance of liability and not on payment of tax by the supplier. •Key benefits: Simplicity, incentive aligned and high qualit....