TaxTMI 
TaxTMI 
Minutes of the 27th GST Council Meeting held on 04th May, 2018
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.... of Revenue position 5. Clarification regarding applicability of Integrated Goods and Services Tax on goods supplied while being deposited in a warehouse 6. Change in the shareholding pattern of GSTN 7. Incentivizing Digital Payments in GST regime (Carry forward item from the 25^th Council Meeting) 8. Imposition of Cess on Sugar under GST and reduction of GST rate on Ethanol 9. New System of Returns Filing 10. Any other agenda item with the permission of the Chairperson --Implementation Schedule of Intra State e-Way Bill in the States 11. Date of the next meeting of the GST Council 3. The Chairperson welcomed all the members present in the meeting. Before the beginning of the meeting, the Chairperson placed on record the appreciation for very active participation of Dr. Haseeb Drabu, Ex-Finance Minister of J & K State in the Council meetings during his membership of the Council. He informed that there were 3-4 main agenda items for discussion while others were of procedural nature. After these preliminary observations, discussion on the Agenda items was taken up. Discussion on agenda items Agenda Item 1: Confir....
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....tem 2, the Council approved deemed ratification of the following notifications, circulars and orders which are available on www.cbic.gov.in : Act/Rules Type Notification Nos. CGST Act/ CGST Rules Central Tax 14 to 21 of 2018 Central Tax (Rate) 10 of 2018 IGST Act Integrated Tax (Rate) 11 of 2018 UTGST Act Union territory Tax 02 to 06 of 2018 Union territory Tax (Rate) 10 of 2018 Circulars Under the CGST Act 36 to 43 of 2018 Orders [Under the CGST Act 01 and 02 of 2018 The Notifications, Circulars and Orders issued by all the member States which are pari materia with the above notifications, circulars and orders were also deemed to be ratified. Agenda Item 3: Decisions of the GST Implementation Committee (GIC) for information of the Council. 8. Secretary stated that in between 26^th and 27^th GST Council meetings, certain decisions were taken by the GIC in its 14th, 15th and 16th meetings held on 19.3.2018, 26.3.2018 and 10.4.2018 respectively. He informed that in the Officers' meeting held on 03.05.2018, the officers had no comments on the agenda. However, an important judgement of Hon'ble High Court....
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....shortfall was 18% which was mainly due to 14% increase in the protected revenue. 10.2. Joint Secretary (Revenue), informed that revenue gap position of different States has been shared in the Agenda Notes. The States like Himachal Pradesh, Uttarakhand, Punjab and Jammu & Kashmir had more than 30% revenue gap; the States like West Bengal, Gujarat and Karnataka were between 20% -30% and the States like U.P., Rajasthan, Maharashtra and Andhra Pradesh had revenue gap below 20%. Further, North Eastern States like Nagaland, Manipur, Mizoram and Arunachal Pradesh either were at par or were getting more revenue than the protected base revenue whereas States like Assam, Tripura and Meghalaya had revenue shortfall. He further informed that return filing was hovering around 64% by due date whereas cumulative returns filed for July 2017 had reached 96% and suggested that some action for enforcing compliance was needed. 10.3. Hon'ble Deputy Chief Minister of Bihar stated that the Centre should send officers to assess reasons of shortfall as revenue gap was 38% in their case. He further suggested that besides Bihar, team of officers might visit other States also where revenue shortfall....
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....unjab was a higher compensation State which was not good for them and stated that Chief Economic Adviser had agreed to do a case study for them. He again invited Chief Economic Advisor to visit Punjab and suggest ways to bridge the revenue gap. Hon'ble Chairperson observed that Chief Economic Advisor might visit those States which needed analysis of this kind, and as a test case, he might visit Punjab first, followed by Bihar. Hon'ble Finance Minister from Punjab further stated that Accountant General of Punjab had made a correction in revenue figures for the base year 2015-16. They had written a letter to the Union Finance Secretary on the issue and requested for an early decision. 10.9. Hon'ble Chief Minister of Puducherry stated that earlier their revenues were coming from trade that took place with adjoining States like Tamil Nadu and people used to make purchases in Puducherry due to lower tax rates. Now with same tax rates in GST, people made purchases in Tamil Nadu and Puducherry's GST collection had gone down. They were trying to improve revenue from services sector in Puducherry and also requested for the visit of Chief Economic Adviser to suggest revenu....
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.... though their revenue shortfall was high, but they were doing very well in return filing. The main reason for short fall appeared to be service sector and the high tax rate on Tobacco under VAT which had now been substantially reduced. He explained that cess, instead of tax on Tobacco, had gone up, which had not been taken into account while preparing revenue shortfall data. Further, TDS system had not been put in place resulting into no tax from work contractors. He further added that as the State did not have developed services sector, it had no experience of administration of service tax and they had started intensive training in that direction. He also stated that average revenue from service sector was only Rs. 2-3 crore per month. He also requested that team of officers from Centre may be deputed to Himachal Pradesh to suggest the ways for revenue augmentation. 10.14. Hon'ble Minister from West Bengal stated that the States could have regular compensation mechanism on monthly basis or some other frequency, so that the State could do better planning. Secretary stated that IGST could not be identified as belonging to a particular State and the Centre until the assessee u....
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.... and Bihar, to analyze reasons for revenue shortfall and suggest revenue augmentation measures. Agenda Item 5: Clarification regarding applicability of Integrated Goods and Services Tax on goods supplied while being deposited in a warehouse 12. Secretary introducing the agenda informed that it was more of a technical issue that as discussed was discussed extensively in the Officer's meeting held on 03.05.2018 and was agreed to by all the officers. He stated that goods imported into India were subjected to Customs Duties including Integrated Tax under sub-section (7) of Section 3 of the Customs Tariff Act, 1975 and the payment of duty on such imports could be deferred by storing the goods in the Customs bonded warehouse. During such storage, the importer had the option to supply such goods to any other person even before clearance from the bonded warehouse. It had been clarified vide Circular No. 46/2017-Customs dated 24.11.2017 that Integrated Tax would be payable on such supplies and buyer would also pay the deferred Customs Duty at the time of clearance of goods from the warehouse. It had been represented that in this scenario, the buyer is being saddled with double pay....
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....rs from Government of India, 2 Directors being Chairman & CEO and remaining 3 Directors would be the Independent Directors to be appointed by the GSTN Board. After the conversion, the additional equity of Rs. 5.1 crore would be distributed between the State and Centre and share of each State would be in the same proportion as at present. 14.1. Hon'ble Minister from Assam welcomed the proposal and stated that it could be accepted. Hon'ble Minister from West Bengal also welcomed the proposal but expressed concerns vis-a-vis human resources and stated that as per the proposal, existing employees would continue for 5 years with same kind of package. He further enquired whether it was necessary to have a special resolution of the Council to strengthen what was being done so that continuity of human capital was maintained, i.e. their terms of employment could not be changed suddenly, and they do not leave the company causing disruption to the operations. 14.2. Hon'ble Chairperson stated that when the present structure had been conceived, the thinking would have been to keep it as a non-governmental entity so that it had flexibility in hiring the best talent. He further ....
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....r suggested that whatever decision might be taken, let everyone be on board and the ideas that come up, get discussed in the Council before actually going to the Cabinet. Further, a PSU with HR flexibility was almost like an oxymoron and hence, it should be ensured legally that HR policy did not get diluted over time; otherwise GSTN could become another PSU with all the problems. 14.7. Hon'ble Chief Minister of Puducherry stated that it was a good move as whatever equity in GSTN was available, would be shared between Centre and States. He also welcomed the proposal regarding HR that the people who were experts in the field had to be retained and if the existing system of PSUs was followed, then it would be difficult to get experts in the field to improve the efficiency. He further stated that the Council might adopt a resolution regarding flexibility in HR matters and if Cabinet approval was required, the proposal of required HR flexibility should be got approved. 14.8. Hon'ble Minister from Tripura stated that he fully supported the proposal of making the GSTN wholly Government owned Company. About the HR certain apprehensions had been floated in the Council, but he ....
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....t it was to incentivize digital payment by customers so that these transactions could not be suppressed by traders in their GST returns. He explained that the proposal in the agenda was to give 2% discount in the GST tax rate to the customers who used digital means to pay for the transactions with overall ceiling of Rs. 100 per transaction, so that the customers were incentivized to make payment using digital means. He further stated that this incentive would not be available in case of transactions relating to the composition dealers or in case where GST tax. rate was less than 3%. 16.1. Hon'ble Minister from Punjab welcomed the initiative and termed it as a great proposal. He further stated that as per the World Bank Report, in India, efficiency of GST collection was 45% only, indicating that there were leakages in GST revenue, and this move would be a very good initiative in checking the leakages. He further suggested that in order to improve efficacy of the proposal, following be also considered: - a. Benefit of reduced tax rate or rebate might be restricted to specified goods and services, while some of goods or services such as travel by rail and air, sale and....
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.... also stated that common man's items being of small value might not attract digital payment and this proposal should be kept pending at this stage. 16.5. Hon'ble Minister from Assam welcomed the proposal. He also supported the idea of keeping some items in the negative list, where the benefit of rebate should not be available, and added that Council should support the proposal. Hon'ble Minister from Chhattisgarh also supported the proposal and submitted that in his State, in the VAT regime, similar incentives were given, and this would bring down parallel economy. Hon'ble Minister from Uttar Pradesh also welcomed the proposal and stated that it had already been proposed in the agenda that the benefit of reduced tax would be limited to a maximum of Rs. 100 per transaction and perhaps there was no need for a negative list. He further stated that the proposal was practical and should be implemented. Hon'ble Minister from Tamil Nadu also supported the proposal and stated that there may be loss of tax revenue in short run. 16.6. Hon'ble Minister from Kerala stated that the stand of his State on this proposal remains the same as it was in the last meeting. He furthe....
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....gree with the proposal of allowing rebate in case of payment by digital means since it was discriminatory in nature, as had been pointed out by Hon'ble Chief Minister of Puducherry and Hon'ble Minister from Kerala with reference to villagers and small traders. He further stated that the village economy, the informal sector and small businesses were badly hit by demonetization. Moreover, the current proposal kept composition scheme of the incentive scheme. In his opinion, a large section of economy i.e. villagers and composition scheme dealers would be left out of the scheme and hence it was discriminatory. He further stated that now these sections of economy had started bouncing back and demand was recovering after demonetization, they should not be disturbed again. Secondly, nobody during the entire discussion so far, had pointed out about revenue loss on account of this proposal. 16.10. Hon'ble Minister from West Bengal explained further that as per the data in the agenda note, Rs. 900, 1200 and 1400 transaction size had been considered for estimating the revenue loss. He added that as per his observation, Rs. 1400 was a very small transaction size to estimate the ....
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....hat in his State, services sector and small traders were very large in numbers and implications of the proposal might be positive in respect of revenue from these sectors. He further stated that the proposal would have to be reviewed from time to time. Hon'ble Ministers from Rajasthan and Tripura also supported the proposal and termed it as progressive. Hon'ble Minister from Tripura stated that this would bring in a lot of transparency and make accounting easier leading to reduction in rural-urban divide. He further stated that the idea of increasing the upper ceiling of Rs. 100 per transaction and introducing a negative list might be reconsidered. 16.13. Hon'ble Minister from Manipur supported the proposal in principle and stated that his State had some practical difficulties such as limited network availability and coverage of only about 10-20% of the population by banking services. He added that to implement the proposal, network coverage in the North Eastern States had to be improved. He further stated that even after improvement of network coverage, there would still be problem of banking coverage and unless these two issues were addressed, this scheme would not....
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....ould result in revenue gain as the traders would be forced to disclose these transactions in their returns and pay tax. He concluded that overall there would be gain in revenues. 16.17. Hon'ble Minister from West Bengal stated that he differed from the analysis given in the Agenda notes. Referring to the Table 'A', he submitted that if the average transaction size of Rs. 1400 was taken and 40% of transactions were done digitally, then the revenue loss would be Rs. 11,939 crore as indicated in the agenda note Hon'ble Minister from West Bengal also stated that in his opinion, the proposed agenda seemed to be based on unsubstantiated and unresearched estimates and if there was any other research, which was not part of the Agenda note, the same could be shared: He further added that the entire estimate was based on transaction size of Rs. 1400 only, which was small as compared to transactions in medium and high value white goods and this revenue loss would then go up if these were added. The advantage of lower tax on digital transactions would go to-the people who already have the means to use digital payments. He summarized his arguments as follows: a. As f....
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....question to be answered was how much shifting will happen from cash to digital due to this incentive of Rs. 100 per transaction. He stated that the proposal would end up giving additional concessions to 'existing stock' of people who were already on digital mode and were better off. He proposed that the States who thought it was a good proposal and wanted to fast digitalize their States, be allowed to adopt it and the States who did not find it a good proposal should not be forced to take the reduction in revenue due to this proposal. 16.22. Hon'ble Deputy Chief Minister of Bihar stated that so far as the question of discrimination is concerned, in rural areas, the traders were mostly below Rs. 20 lakhs and out of tax net and hence there would be no discrimination. He further stated that there was a need for reduced cash economy. He had discussed the proposal with traders in his State who were in support of this move. He proposed that in the beginning, the incentive limit could be fixed at maximum of Rs. 100 per transaction and going forward, it could be increased so that large number of people shift to digitization. Hon'ble Minister from Assam concurred with the....
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.... cess @ Rs. 3 per Kg over and above 5% GST on sugar in order to create a separate fund for Government intervention in the interest of sugarcane farmers. He further informed that sugar industry was peculiar and highly cyclical industry, where price of raw material was determined by Government whereas the price of final product was market driven. As a result, in the year of excessive production of sugar, price of final product crashed whereas the price of raw material did not change, resulting in huge arrears on the part of mill owners to be paid to sugar cane farmers. To tide over this crisis, proposal before the Council was to allow a levy of sugar cess, which would be used mainly to clear the sugarcane procurement arrears of the mill owners to the farmers. 18.1. Second part of the proposal was regarding reduction in GST rates on ethanol from 18% to 12% for blending in petrol. He informed that during the discussion in the officer's meeting held the day before, some officers had observed that while there could be a case to reduce GST on ethanol for blending with petrol, it would not be advisable to reduce GST on ethanol for manufacture of alcoholic liquor for human consumptio....
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....ethanol going to liquor industry should remain at 18%. He supported the proposal stating that the sugarcane growers would get much needed relief. The Hon'ble Minister from Uttarakhand also :supported the proposal and stated that in Uttarakhand, during 2018, the average cost of sugar was Rs. 4990 per quintal, whereas the present rate of sugar in the market was Rs. 2600 per quintal. There was a loss even after selling molasses @ Rs. 40 to 50 per quintal. During 2014;15, 2015-16 and in 2016-17, Rs. 8.15 crore, Rs. 13.45 crore, Rs. 42.23 crore respectively was realised through sugar cess (total Rs. 63.83 crore) while in 2014 and 2015, for the revival and modernization of sugar industry, the State got loan of Rs. 77.37 crore and Rs. 69.44 crore respectively at 12% interest rate. He submitted that State should get assistance for the modernization of sugar industry and providing assistance to sugarcane growers through the money realised from imposition of this cess. 18.4. The Hon'ble Ministers from Uttar Pradesh and Tripura also supported the proposal. Hon'ble Minister from Uttar Pradesh stated that using cess to pay farmers would be very good and State Governments should a....
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....h and Private Procurement and Stock Scheme. If the third option was modified, then*farmers could benefit significantly; otherwise only mill owners would benefit and they would not pass on the benefit to the farmers. 18.7. Secretary intervened and informed that the sugar prices had gone down drastically during last 2-3 months, and if immediate steps were not taken during this year, then there could be a situation next year where production was affected due to mills going out of business and consumer price of sugar might go up substantially making consumers suffer more. Thus, in case of cyclical products, there was a need for some sort of stabilising mechanism and imposition of cess was one such way to stabilise at a price which might not be too good for consumers and not too bad for mill owners. Further, Rs. 3 per Kg was the maximum ceiling and the actual cess to be levied by the Government of India would depend upon the prevailing situation. 18.8. Shri Ravikant., Secretary, Food, Government of India, informed that the Government determined the price of sugarcane to be paid to the farmers and mill owners were obliged to purchase it. There was no control on price of sugar and t....
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....t ways to establish a price stabilising fund, might be arising out of cess, so that other crops like cotton etc. also got the benefit. 18.10. The Hon'ble Deputy Chief Minister of Delhi stated that the Council had agreed to the principle of 'One Nation, One Tax' but a new tax was being introduced from back door. It would open a new window, where many other industries/sectors would come with demand to impose some cess for bailout. Hence, tradition of bailout package should not be started as it was against the principle of ' One Nation, One Tax' . 18.11. Hon'ble Chief Minister of Puducherry opposed imposition of cess on the grounds that / earlier cess was collected by the Government under the Sugar Cess Act and the same had been removed by Taxation Laws (Amendment) Act, 2017 with the aim of 'One Nation, One Tax'. By bringing cess on sugar, certain States would be benefited and certain States would be (affected badly. Consumers of States not having sugar mills would be compensating the other States. Hence, for benefit of some States, other States should not suffer. He further added that it was practically impossible for money going directly to the ....
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....an support should be given without interest so that they could work for survival of sugar industry. He informed that in his State, there was stock of 41.5 lakh quintals of sugar and due to lower price, it' was not selling. Therefore, neither sugarcane grower would survive nor sugar mill would survive without being supported by the Council. 18.15. Chief Economic Advisor stated that the Council needed to make a distinction between objectives and instruments. The objective of helping sugar farmers was extremely important but current issue was regarding appropriate instrument to deal with this situation. He felt that use of GST was not appropriate as it undermines the sanctity and simplicity of GST. He added that the Council should not use tax instrument for every change of cycle of one particular commodity and national policy should not be distorted for few States. As regards proposal to reduce tax on ethanol, he stated that end use based tariff exemptions should be avoided as these would be prone to misuse. 18.16. Hon'ble Chairperson observed that as informed by Secretary Food, sugar price in market was around Rs. 26 to 28 per Kg, which was Rs. 5 below the cost price. I....
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....e being similar to food grain, but jute was being used in milling industry like sugar and continuity in value chain was desired. He further stated that jute industry had international competition from Bangladesh and even then, they had sacrificed Jute Cess. The proposed cess would create a movement in the country for similar packages, which would be against the principles of GST. He further added that Hon'ble Chairperson had been very impartial in maintaining the fundamental principles of GST and they needed to be maintained 18.18. Hon'ble Minister from Punjab suggested that instead of sacrificing the principle, GST rate on sugar might be increased from 5% to 12%, for a limited period say six months to one year. Secretary explained that the additional tax would be shared 50-50 between Centre the States and out of central pool, again 42% of the money would be devolved to the States leaving only 58% with the Centre. So, increased tax rate on sugar was not a correct proposal as consumers then would suffer more while less benefit would go to the farmers. Thus, to stabilise the price of sugar, the Council should consider putting some cess and use this cess for welfare of the ....
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....in silent in a crisis situation when industry was suffering due to sale price being below the cost price and would have to bail out the industry to avoid its collapse. He added that the measures being suggested by some States were impractical. The States had right to bring such matters before the Council and the Council had powers to recommend cess. He stated that too much of politics was being seen behind the proposal and it was clouding the minds. 18.21. Hon'ble Minister from Assam stated that even though Assam was a poor State yet it was not opposing the proposal. Later on, when Assam faced floods, they would come to the Council for help. There could be a genuine argument on the quantum of cess, but to say that this was a distortion of GST and one State should not subsidize other States, would be a dangerous argument. It was not the spirit on which this Council had acted so far. There could be two opinions on an issue but the States should stand for each other at any cost. 18.22. Hon'ble Minister from Kerala stated that the question was not of cross-subsidy but that commercial crops in a number of States were in doldrums and his State Government was paying a direct....
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.... was cleared from the Council, it would be placed before the Cabinet for issuing Ordinance. Hon'ble Minister from Kerala stated that based on the same principle, there should be additional cess for all agricultural products. 18.25. The Chief Economic Advisor stated that having identified that there was a need to help the sugarcane farmers, there could be number of ways to raise revenue and the Council could try to identify them. He suggested that a small Committee could be formed to find resources, which were least distortionary to GST and cause least inconvenience to the consumers. Hon'ble Minister from Assam stated that putting cess was not a distortion of GST. Chief Economic Advisor clarified that he was not challenging the legal powers of the GST Council but only advising that there were better ways of raising required resources. 18.26. Hon'ble Chairperson observed that based on discussions, 3 scenarios were emerging. First and immediate problem was in 10 States involving large number of cane growers; second was relating to some other member States, which had similar problem in relation to other crops; and the third was similar potential problem~ arising in fu....
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....8. Secretary clarified that it was wrong to say that putting cess on one item was distortion of GST as the Council had already adopted the concept of cess for compensation that covered more than 10 items like tobacco, automobiles, etc. He reminded that when cess mechanism for compensation was discussed, the Council debated at length whether it was better to have cess or additional GST. Thus, the cess imposition was not a distortion when it benefited States but, in this situation, all were advising that Govt. of India should bear the cost. He stated that the Government of lndia would have suffered big indirect tax loss last year but for IGST balance available. There was no mechanism for absorbing shock of GST for Central Government and no guarantee was given to Govt. of India by anyone. He added that when cess on 11 commodities was already there, if one more commodity was added to the cess basket, and this kitty used only for specific purpose, he did not see anything wrong in it. Further, consumers could easily bear the increase and it would be collected at single point. He reiterated that it was good for the future economic growth, welfare of the consumers and sugarcane farmers. In....
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....es came with their proposals of cess and in such a situation, one State's interest would have to be decided against another State's interest. Hon'ble Chairperson responded that the Council would consider the proposal on its own merit as and when a request would come rather than presuming that it would be accepting or rejecting every such proposal. Hon'ble Minister from West Bengal reiterated that the proposal was not acceptable to him on fundamental principles. 18.31. Hon'ble Minister from Uttarakhand stated that the issue should be considered sympathetically. He stated that presently the cost price of sugar is Rs. 4990 per quintal, whereas the sale price including molasses sale was not more than Rs. 3000 per quintal, and it was a near disaster situation. He added that there had been many amendments in the Constitution and when the Council was empowered to impose cess, it should be imposed rather than making a political issue out of it. He requested that the proposal should be approved by the Council as it was a question relating to the farmers who would stop growing sugarcane. 18.32. Hon'ble Chief Minister of Puducherry stated that there were sharp di....
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....ving more money with the Centre. Hon'ble Minister from Goa said that increase in tax on sugar was a retrograde step. CCT, Tamil Nadu clarified that he was only making a technical point to dispel apprehension that in case of increase in tax rate, the Centre would get only a small amount of money and that the States would have extra money to be used in the budgetary process. Chief Economic Advisor stated that it was agreed that money was needed for sugarcane farmers and national efforts were required to raise Rs. 6700 crore. He suggested that instead of raising money from sugar consumers, the Centre and States. could raise other taxes, e.g. Tax on alcoholic beverages. Thus, 3-4 ministers of sugar producing States and some other States could sit together and come up with 3-4 ideas on the issue. Hon'ble Minister from West Bengal stated that data wise, it was not correct that the crisis situation was there in 10 States. As per his calculations, the situation was bad only in 5 States viz, Uttar Pradesh, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh and out of them, Tamil Nadu had opposed it, while Karnataka had not said anything. Hon'ble Deputy Chief Minister of Gujar....
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....ty Chief Minister of Bihar and two models were discussed in detail. These models had two fundamental differences - firstly, whether provisional credit was to be allowed or not and secondly, if the seller had not paid the taxes, whether the recovery should be made from the buyer or from the seller. 20.1. A middle ground has been incorporated in the proposed new model wherein during the transitional period, provisional credit will continue to be available for six months or so but will eventually go away. With respect to the recovery of tax, the first effort would be made to recover from the seller but only in special circumstances such as missing seller or seller without any assets, the buyer's credit would be reversed. Apart from these, other points that were common in both the models have been retained. 20.2. The new return design envisaged one return per month for all the dealers except 'nil' filers and composition dealers who would continue to file quarterly return. The document flow and upload would be uni-directional. The transition from old return to new return system would be in 3 stages. The total information which was being collected in return would be rat....
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....egal scrutiny and drafting. 20.7. Secretary explained that it had been consistent stand of many that availability of input tax credit should not be linked with payment of taxes but was being opposed by the States. He added that even if the seller did not pay taxes after uploading the invoice online, the first liability of paying taxes would remain with the seller. If the seller did not pay the taxes, the State concerned following due process of issuing notice and adjudication etc. can recover the tax from the seller. However, where ultimately the seller did not pay the tax, the purchaser is not absolved of the responsibility to pay tax in the proposed model. Thus, the first responsibility of paying taxes would remain with the seller but responsibility remained with the buyer also in case the seller did not pay the tax. He added that no major change in law was required. In order to achieve simplicity in return filing, the new model proposed to do away with the automatic reversal process and it would be notice-based. The notice and reply would be handled through the system and with the introduction of new model, the credit flow would not be affected. He stated that in the new mode....
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....ction dealers shall file one monthly return and return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having Nil transaction shall have facility to file quarterly return. ii. There shall be unidirectional flow of invoices uploaded by the seller on any time basis during the month, which would be the valid document to avail input tax credit by the buyers. Buyer would also be able to continuously see the uploaded invoices during the month but there would not be any need for him .to upload his purchase invoices. Invoices for B2B transaction shall need to use HSN at four-digit level or more to achieve uniformity in the reporting system. iii. The B2B dealers shall fill invoice wise details of the outward supply made by them while the input tax credit would be calculated automatically by the system based on invoices uploaded by his sellers. Based on these, the system would automatically calculate his tax liability and Input Tax credit availability. Taxpayer should also be given user friendly IT interface and offline IT tool to upload the invoices. iv. There would not....
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....3.5.2018. Officers from Maharashtra, Manipur and all UTs without Legislature had agreed to implement the intra-State e-way bill from 25^th May 2018 whereas Chhattisgarh, Goa, Odisha, Mizoram and Punjab had agreed for its implementation from 1^st June 2018. He further added that from the point of view of load on the system, there should be at least one day gap between the implementation of e-way bill in big States like Tamil Nadu, Punjab, West Bengal, Odisha, etc. and therefore, he sought the permission of the Council to extend the implementation by two days. Accordingly, he proposed that Tamil Nadu would implement intra-State e-way bill from 2^nd June and West Bengal from 3^rd June, 2018. 22.1. He further stated that Jammu & Kashmir and NCT of Delhi had yet not indicated the dates. Shri. H. Rajesh Prasad, CCT, Delhi stated that Delhi wanted to remain completely exempted from intra-State e-way bill. Secretary stated that exemption from intra-State e-way bill was not a good idea and it should be implemented though flexibility in the e-way bill system to the extent permitted, could be taken advantage of. Further, prior consultation with the Centre was also required as no State coul....
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....npreet Singh Badal Shri Rajpal Singh Shekawat 21 Tamil Nadu Shri D. Jayakumar 22 Telangana Shri Etela Rajender 23 Tripura Shri Jishnu Debbarma Annexure 1 List of Hon'ble Ministers who attended the 27th GST Council Meeting held on 04.05.2018 Name of Hon'ble Minister Dr. Himanta Biswa Sarma Shri Sushil Kumar Modi Charge Union Finance Minister Minister of State (Finance) Finance Minister Deputy Chief Minister Minister - Dept. of Commercial taxes Deputy Chief Minister Minister for Panchayat Deputy Chief Minister Minster for Industries Minister for Social Justice & Empowerment Minister - Department of Urban Development, Housing and Transport Finance Minister Minister of State of Energy, Tourism, Food & Drugs Administration and GAD Deputy Chief Minister Finance Minister Minister for Urban Development Affairs Minister - Finance & Excise Chief Minister Finance Minister Minister for industries Minister for Fisheries and Personnel & Administrative Reforms Finance Minister Deputy Chief Minister 24 Uttar Pradesh Shri Rajesh Kumar Agarwal Fi....
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....icer 1. Andhra Pradesh Dr D.Sambasiva Rao 2. Andhra Pradesh 3. Andhra Pradesh 4. Andhra Pradesh 5. Assam Shri J.Syamala Rao Shri Ramesh Babu Shri D.Venkateshwar Shri V.B. Pyarelal 6. Assam 7. Bihar JAYNA BOOK DEPOT 8. Bihar 9. Bihar 10. Chhattisgarh 11. Chhattisgarh 12. Delhi 13. Goa 14. Gujarat 15. Gujarat 16. Haryana 17. Haryana 18. Haryana 19. Himachal Pradesh 20. Himachal Pradesh 21. Jammu & Kashmir 22. Jammu & Kashmir 23. Jharkhand 24. Jharkhand 25. Karnataka 26. Kerala 27. Madhya Pradesh 28. Madhya Pradesh 29. Madhya Pradesh Maharashtra 30. Shri Anurag Goel Smt. Sujata Chaturvedi Shri Arun Kumar Mishra Dr. Pratima Shri Amitabh Jain Smt Sangeetha P Shri H. Rajesh Prasad Shri Dipak Bandekar Shri Arvind Agarwal Shri Sanjiv Kumar Smt Ashima Brar Shri Vijay Kumar Singh Shri Rajeev Chowdhary Shri Jagdish Chander Sharma Shri Sanjay Bhardwaj Dr. Shamim Ahmad Wani Shri Waseem Raza Shri K.K. Khandelwal Shri Ajay Kumar Sinha Shri Srikar M.S. Dr. Rajan Khobragade Shri Manoj Govil M....
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....Commissioner, CT Jt. Commissioner, CT Asstt. Commissioner Asstt. Commissioner Asstt. Commissioner Asstt. Commissioner Scientist E, NIC Secretary Commissioner (State Taxes) Principal Secretary Finance Commissioner, CT Addl. Commissioner, CT Secretary (Finance) Commissioner (ST) Advisor (Finance) Secretary Finance (Revenue) Commissioner, CT OSD, Finance Secretary, CT Jt. Commissioner, CT Commissioner, CT Secretary Addl. Commissioner Principal Secretary (Revenue) Commissioner (CT) Addl Commissioner Chief Resident Commissioner, Tripura Bhavan Addl. Chief Secretary, CT Commissioner, CT Joint Secretary Addl. Commissioner, CT Commissioner, State Tax Additional Commissioner of State Tax Senior Joint Commissioner Page 34 of 42 JAYNA BOOK DEPOT MINUTE BOOK Annexure 3 Estd. 1949 JAYNA 2 Presentation for the 27th Meeting of GST Council Agenda Deemed Ratification of Notifications / Circulars etc. Decisions taken by GIC Issues for approval of GST Council Page 35 of 42 INATION TAX MARKET CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINU....
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....return in FORM GSTR-6 by an Input Service Distributor ✓ Notification No. 19/2018 - CT dated 28.03.2018 issued Extension of due date for filing of FORM GST TRAN-2 ✓ Order No. 01/2018-GST dated 28.03.2018 issued CHAIRMAN'S INITIALS Page 37 of 42 CHAIRMAN'S INITIALS MINUTE BOOK Agenda Note No. 3: Decisions of GIC post 10.03.2018 (3/5) 9 Decisions in 15th GIC Meeting (26.03.2018 Contd...) • NATION TAX MARKET Extension of time limit for filing refund claims by UIN, CSD and other persons notified under section 55 of the CGST Act ✓ Notification No. 20/2018 - CT dated 28.03.2018 issued Extension of due date for filing the return in FORM GSTR-6 by an Input Service Distributor Notification No. 19/2018 - CT dated 28.03.2018 issued âš« Extension of due date for filing of FORM GST TRAN-2 Order No. 01/2018-GST dated 28.03.2018 issued INATION TAX MARKET Agenda Note No. 3: Decisions of GIC post 10.03.2018 (4/5) Decisions in 16th GIC Meeting (10.04.2018) • Notification of Final Return to be filed in FORM GSTR-10 Amendment in Rule 89(5) of the CGST Rules, 2017 â€....
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....IALS MINUTE BOOK Annexure 4 Return Design - Fusion Model •Periodicity of return Flow of documents and information Transition Provisional input tax Credit Credit matching Partial Payment of tax Other steps for simplification Periodicity of return & Flow of documents "All taxpayers to file monthly return except composition dealers and NIL returns which would be quarterly. - ■Staggering of the dates of returns Large taxpayers by 20th, Small by 25th and Nil quarterly. ■Unidirectional flow of documents from seller with continuous upload of invoice with viewing and locking by the buyer to control input tax credit. Locking may be deemed to reduce compliance. Page 40 of 42 JAYNA BOOK DEPOT Estd. 1949 JB JAYNA MINUTE BOOK Transition to be in three stages Stage 1: GSTR 3B + GSTR 1 plus any extra information to close cycle. ■Stage 2: GSTR 3B+ new return. Provisional Credit available. (Information on missing and rejected invoices/credit thereon may be collected and cost imposed to expedite transition). Stage 3: Only the new return. ■GSTR 3B withdr....