TaxTMI 
TaxTMI 
Minutes of the 38th GST Council Meeting held on 18th December 2019
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....tee for the consideration of the GST Council 6. Issues recommended by the Law Committee for the consideration of the GST Council i. Standard Operating Procedure to be followed in case of non-filers of returns ii. Proposed amendments in the CGST Act. 2017 7. Creation of Public Grievance Redressal Committee as per Hon'ble High Court of Delhi's order in the case of Sales Tax Bar Association 8. Status of Group of Ministers (GoMs) constituted for various agenda items 9. Deemed ratification by the GST Council of Notifications, Circulars and Orders issued by the Central Government 10. Decisions of the GST Implementation Committee (GIC) for information of the Council 11. Decisions/Recommendations of the IT Grievance Redressal Committee for information of the Council 12. Quarterly Report of the NAA for the quarter July to September 2019 for the information of the GST Council 13. Presentation on developments regarding implementation of i. GST EWB System - FASTag Integration ii. New Return System iii. Integrated refund system with disbursal by single authority iv. Generation of electronic Invoice Reference Number v. Linking GST registration with Aadhaar and propo....
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....he Minutes of the 37th GST Council Meeting (hereinafter referred to as Minutes) held on 20th September, 2019 in Goa. He stated that the Minutes was circulated to all the States in advance and sonic corrections had been suggested by the States during the Officers' Meeting held on 17th December, 2019. 4.1. The following three changes were proposed by the State of Odisha to the version of the Hon'ble Member from Odisha recorded in the Minutes: i. In paragraph 4.23 of the Minutes, to replace the presently recorded version (They also suffered loss to the tune of ₹ 600 crores on account of Sales Tax.) with the following version: 'They also suffered loss of VAT to the tune of ₹ 600 crores on account of paddy and pulses.' ii. In paragraph 22 of the Minutes, to replace the last line (The Hon'ble Minister from Odisha suggested that there should be a check in (1st System where a registered taxpayer should not be allowed to file FORM GSTR-3B unless he/she had file FORM GSTR-1 in previous month.) with the following version: The Hon'ble Minister from Odisha suggested that there should be a check in GST System where a registered taxpayer should not be allowed to tile FORM GSTR-1 ....
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....mplies.' 5.4. To replace the sentence 'He further stated that Puducherry was entitled to 71% of the IGST amount collected by the Centre.' in paragraph 14.4 of the Minutes with 'He further stated that Puducherry was entitled to 0.27% of the lGST amount apportioned to the States which would work out to ₹ 219 crore.' 5.5. To substitute the words revenue implication' in paragraph 34.9 of the Minutes with the word 'turnover'. 5.6. The Secretary also requested to be allowed to formally sign the already confirmed Minutes of the 34th GSTnd articles of textiles fall Council Meeting held under the Chairmanship of the then Hon'ble Finance Minister and Chairperson of the Council, Late Arun Jaitley, on 19-3-2019 in New Delhi so that it can be put in public domain. Agenda Item 2: Issues concern in GST on Lottery 6. The Secretary invited Shri Manish Kumar Sinha. Joint Secretary, TRU-lI to brief the agenda to the Council. 6.1. Dr. Thomas T M Isaac, the Hon'ble Minister from Kerala intervened and stated that he and few other Hon'ble Ministers had requested for discussion on the issue of compensation to the States. However, he could not find the Agenda on compensation to the States list....
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....as an agenda, did it not merit a response. He further requested the Chairperson to reassure the Members that the issues which were of obvious importance would be taken up. The Hon'ble Minister from Kerala stated that the suggestion made by the Hon'ble Deputy Chief Minister of Bihar was acceptable and the issue of compensation to States could be clubbed along with Agenda item3. The Hon'ble Chairperson stated that there was absolutely no hesitation in discussing this issue; that she would like to quell any worry that Centre did not want to discuss compensation. She added that it had been told to her that the issues on revenue augmentation was discussed during the Officer's Meeting held on 17th December 2019 and a presentation was to be made in this regard as part of Agenda item 3 and compensation issues would be discussed as part of that Agenda in an elaborate manner. The Council agreed to discuss the issues related to revenue and compensation in Agenda item 3 and continued with discussion on issues concerning GST on Lottery. 6.3. The Joint Secretary, TRU-Il (JS, TRU-lI) initiated the discussion with a presentation (attached as Annexure 3) on this agenda item by stating that it was ....
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....ld be high i.e. 28% or 18%. (ii) The constitutional challenge to the dual rate structure should be defended forcefully. The JS, TRU-Il stated that in the 35th GST Council Meeting held on 20th June 2019, the Council was directed to seek legal opinion from Learned Attorney General of India as to whether differential rate could be levied on lottery and whether it would violate Article 304 of the Constitution. He drew the attention to the opinion furnished by the learned Attorney General of India that there would be no impediment arising from the Constitution of India to the levy of a uniform rate of GST on 'State Run Lotteries' and State Authorised Lotteries'; that Article 304 of the Constitution of India had no bearing on the levy of differential GST on 'State Run Lotteries' and State Authorised Lotteries'; and that these two lotteries could be treated as different goods. 6.5. The JS, TRU-II also drew attention to a Writ Petition (C) No. 961/2018 filed in the Hon'ble Supreme Court relating to levy of GST on lottery on the grounds that GST could not be levied on lottery 'as goods'; GST on lotteries should be imposed after excluding the prize money component of the lottery ticket s....
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....wn view point on the issue. He stated that Kerala Government run its own lottery (State Run Lottery); however, the North-Eastern States did not have requisite infrastructure to run their own lotteries. Therefore, they had to outsource it to someone to run their lotteries. He likened it to State-operated bus service where the State also outsourced the bus service to private agencies to operate it under the State's banner and the consumer did not have to pay differential rate for using the bus services irrespective of it being State run or State authorised. Similarly, there was no difference between the two kinds of lotteries, He added that irrespective of the argument of continuing the differential rate structure on lotteries, by having two different GST rates on lotteries, North-Eastern States were being discriminated. Therefore, he supported a Division to decide the issue. He also added that as lottery was a sin good, the GST rate might be pegged at higher rate of 28%. 6.8. Shri Mauvin Godinho, the Hon'ble Minister from Goa stated that this issue had been debated enough in the Council. He observed that even though the lotteries were classified as State Run and State Authorised, i....
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....n any issue had been done by division and requested the Council to decide something on the issue in hand by consensus again. He stated that in his view one standard rate could he prescribed for lottery. Further, as lottery was a sin good, it should attract higher GST rate of 28% so as to increase revenue for the Centre and the State simultaneously. The Hon'ble Deputy Chief Minister of Delhi requested JS, TRU-Il to reiterate the advice furnished by the learned Attorney General of India. The JS, TRU-Il stated that the Learned Attorney General had clarified that the two types of lottery could be intelligibly classified as two different goods but he also clarified that there was no bar in keeping the rate uniform. Thereafter, the Hon'ble Deputy Chief Minister of Delhi stated that two perspectives were being discussed on the issue, the first being in line with national interest for lottery being a sin good and the second was regarding augmentation of revenue by raising the GST rate on lottery. He added that on the first perspective, even if it was not domain of the Council, but he felt that for the sake of the country. With respect to the second perspective on revenue and it appeared th....
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....ue. He observed that most of the States had given their opinion on the issue and the mood of the Council could be ascertained. He stated that personally he was of the opinion that Lottery should be banned across the country as it was a sin good. However, in the given context he supported a uniform higher rate for lotteries. He called upon the Council Members to move from 'unanimity' (sarvaanumati) to 'consensus' (sarvasahmati) and also to not insist for division of votes on the proposal. 6.12. Shri Metsubo Jamir, the Hon'ble Minister from Nagaland stated that the Hon'ble Member from Assam and Goa had explained the problems of North Eastern States and the smaller States vis-à-vis differential rates of GST on the two types of lotteries. He added the issue was not about lottery here, but the fact that because the apex body on GST matters i.e. GST Council was unable to take a decision on an issue and therefore, the Hon'ble Supreme Court would have to intervene in the matter based on litigation. While he appreciated the diversity of opinion among the Council members, he also stated that the outcome from today's meeting would reflect upon us and therefore, he felt that this body ....
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....na but since it was a sin good, it should be taxed in highest rate slab. He also stated that in line with tradition of the Council and its smooth functioning. It would be better if the matter could be decided by consensus instead of division of votes. 6.15. The Hon'ble Minister from West Bengal stated that the State Authorised Lotteries of North-Eastern States competed very well with State Run Lottery in tile State of West Bengal. He observed that almost 92% of the revenue accruing to the State of West Bengal was from lotteries were generated from State Authorised lotteries. (This is shown in page 138 of the Detailed Agenda Notes - Volume. 1). He observed that many States did not have paper lottery or might had only online lottery. Therefore, he suggested that the States where lottery was not banned might be allowed discretion on whether they wanted a dual rate or uniform single rate. The Hon'ble Minister from Punjab stated that they have no opinion in the matter. However, since some of the States were suggesting division, he wished to suggest a solution of levying GST rate of 12% and 18% on State Run Lottery and State Authorised Lottery. Thus, reducing the gap to only 6% between ....
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....that though his State also did not have any lottery, he also supported a single rate of lottery as the North Eastern States were smaller States with limited resources and they should have parity with the mainland States. Shri V. Hangkhanlian, the Hon'ble Minister from Manipur stated that even though they did not have lottery, still they also supported single GST rate on lottery. Shri Lalchamliana the Hon'ble Minister of Mizoram also supported the views of Hon'ble Minister from Assam for the North Eastern States. He stated that their State also supported single GST rate on lottery. 6.18. Shri C P Singh, the Hon'ble Member from Jharkhand stated that his State had no lottery and he was of the opinion that lottery should be banned in the entire country. However, he supported uniform GST rate on lotteries. Shri Basavaraj Bommai, the Hon'ble Minister from Karnataka stated that his State ran no lottery. However, based on discussion in the Council, it appeared to him that there were two sets of States i.e. those who allowed the lottery and those who did not allow the lottery, lie suggested that those who allowed lottery might be allowed to lake any view in the matter after taking into con....
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....the Council appealed to the Hon'ble Minister from Kerala to reconsider his demand for division. However, the Hon'ble Member from Kerala insisted on division. 6.20. The Hon'ble Chairperson requested the Secretary to follow the rules in this regard. The Secretary then read out the relevant Rule 14 i.e. 6 Decision on proposals' in Chapter V from the Procedure and Conduct of Business Regulations of the Goods and Services Tax Council to the Members of the Council which reads as follows: All proposals before the Council shall be discussed threadbare. Thereafter, the Chairperson shall put the question and invite the Members of the council to cast their votes by show of hands. In case Member seek division on any proposal, the Chairperson shall put the proposal to vote through secret ballot' The Hon'ble Chairperson directed the Secretary to conduct the proceedings accordingly. Thereafter, the Secretary put forth the question before the Council to vote i.e. "Do you support the proposal to levy a uniform rate of tax on State Run Lottery and the State Authorised Iottery?". Then the Secretary requested the Hon'ble Members to indicate their decision by the show of hands if they supported the....
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....ble printing of fresh lottery tickets and exhaust the already printed lottery tickets. The Secretary proposed that the Council may approve that 28% rate of lottery would apply from 01.03.2020. 7. For Agenda item 2, the Council decided to apply a single uniform rate of 28% on supply of State Run Lottery as well as State Authorised Lottery with effect from 01.03.2020. 7.1. The Council also decided to refer the pending matters relating to casino, horse racing and online gaming to the Law Committee/Fitment Committee. Agenda Item 3: CST Revenue Augmentation Recommendations of the GoM on Revenue Analysis and Deliberations of the Committee of Officers on Revenue Augmentation 8. The Secretary requested the Hon'ble Deputy Chief Minister of Bihar, the Convenor of the GoM on Revenue Analysis to present the recommendations of the GoM to the Council. The Hon'ble Deputy Chief Minister of Bihar mentioned that the GoM had observed that the revenue gap for the period April 2019 - August 2019 had increased for almost all the States compared to the period April 2018 - August 2018 and that most States had growth rate of less than 14% in pre-GST period. He further stated that the (GoM had made the ....
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.... the presentation, JS TRU-Il stated that monthly GST collection in the year 2019-20 was higher than that of 2018-19 except during the months of September, 2019 and October, 2019. He stated that the revenue in the month of November, 2019 was more than that of November, 2018 and the short period of negative growth in GST collection was already over. The JS, TRU-I stated that while the growth rate of GST collection for April, 2019 - November, 2019 on domestic supplies was 8.3%, the same for IGST collection on import of goods showed a decline of 7.2%. He stated that imports have witnessed compression as well. He further stated that the combined growth rate (GST and Cess collection on domestic supplies and imports) was 3.7% which was less than the expected rate of growth. He presented the projection of requirement for compensation when growth rates were assumed at 5%, 8% and 10%. He stated that while in the previous two financial years, the Compensation Cess collection was more than its requirement, in the next two years, the gap was likely to be widened, depending on the growth rate. He presented compensation requirement gap under various growth rate scenarios. The JS, TRU-1 then proce....
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....d in one of the Council Meetings that GST Council could borrow to fund the compensation Cess requirement and also decide to extend it from 5 years to 6 years. The problem would arise around February, 2020. He then wanted to know as to why there was a delay in disbursement of compensation Cess when money was available. He stated that the bi-monthly disbursal of compensation as backed by the law. This problem could recur and this would lead to non-fulfilment of expenditure requirement by the States. He further highlighted that in the 7th GST Council Meeting, an assurance was given by the then Chairperson, which had been duly minuted. 8.5. The Hon'ble Minister from West Bengal enquired about the expected rate of growth and stated that they would first like to understand and examine all the information provided in the presentation and then react. Ultimately, all this was a function of the political economy of the country. Ile stated that regarding compensation, the Centre might confirm the frequency of compensation disbursal for the future, so that the States were assured of their fiscal space. 8.6. The Hon'ble Deputy Chief Minister of Delhi stated that GST rates structure should not....
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....he parts of mobile phone were charged at 18%, the finished product of mobile phone was charged at 12%. He stated that such anomalies might also be corrected in a way to ensure the revenues for both the States and the Centre. He stated that the States of Uttar Pradesh did well in GST regime and that they were optimistic that the States would continue to do well in the future. Ideally, the GST rate should take care of 10% increase in the VAT collections. 8.9. The Hon'ble Minister from Punjab stated that we had reached mid-way in the assured compensation regime. He highlighted the fact that the rates were predominantly decided in the 14th GST Council Meeting held on 18th & 19th May 2017 in Srinagar. Further, in the subsequent meetings, there had been several rate reductions without sufficient discussion which compromised the revenue of the Centre as well as the States. He stated that if the revenues were not balanced quickly the consensus might disappear in the GST Council. Shri V. K. Garg, Advisor, Financial Resources to Chief Minister, Punjab drew attention of the Council to the fact that several reports had made recommendations on the GST rates structure till the inception of GST ....
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.... improve their GST collections. He finally requested to make a more in-depth constructive presentation on revenue which should be forwarded to State Governments seven days in advance of the next GST Council Meeting. 8.12. The Hon'ble Deputy Chief Minister of Bihar stated that the steepest reduction in the GST rates was effected in the 23rd GST Council Meeting held in Guwahati on 10.11.2017 when GST rate of 28% on 243 items was reduced to 18%. He stated that any shortfall in tax collection because of this reduction in rates, should have been observed within the following months and not after two years. Hence, the current fall in GST collections should not be attributed to the rate reduction undertaken in earlier years. He further stated that the increase in threshold limit for registration could not have caused significant fall in revenue collection. He suggested that in GST regime, the excise component which was hidden earlier had become visible to the consumer which resulted in resistance to higher rate slabs, necessitating reduction of rate for few items. He stated that GST collections had fallen not due to downward rate revisions but due to economic slowdown. He stated that kne....
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....Annexure 5). This was followed by a presentation by Shri K K Sharma, Advisor to Lt. Governor, Jammu & Kashmir on measures taken by them to improve revenue collections (attached as Annexure 6). 9. For Agenda item 3, the Council took note of the presentation made by JS TRU-I and TRU-Il and the suggestions made by the Hon'ble Members. The Council also took note of the presentations made by the State of Uttar Pradesh and UT of Jam mu & Kashmir. Agenda Item 4: Report of GoM on Real Estate on boosting Real Estate Sector 10. The Secretary asked Shri Manish Kumar Sinha, JS, TRU-Il i.e. Secretary to the GoM on Real Estate to apprise the Council about the developments in the GoM and their recommendations by way of a presentation (attached as Annexure 7) on the agenda item. The JS, TRU-Il stated that the Hon'ble Chairperson in the 37th GST Council Meeting held on 20.09.2019 desired that a meeting of the GoM on Real Estate be held to address the pending issues. Accordingly, a GoM meeting headed by Shri Nitinbhai Patel, the Hon'ble Deputy Chief Minister of Gujarat, was convened on 21.11.2019 to discuss and examine the following four issues: - (i) Request from the State of Punjab to exempt....
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....ancial business, provided by a private person or entity, or an entity having less than 20% ownership of the Government. Similar safeguards as at sl. no. (ii) and (iii) above shall apply to this clause as well. * The term 'private person' shall be clarified by way of a Circular. The existing Explanation appended in the present notification would also apply and the number '50%' therein should be suitably substituted by '20%'. 10.3. Proposal 2 -To exempt the supply of construction services provided by the Co-operative Housing Society to its members. 10.3.1. It was requested from State of West Bengal to provide more data and examples to explain that 'no value addition is involved' and that there would be no loss of revenue in the proposal. West Bengal might also suggest safeguards in such a way that the exemption if granted, it would be available only to a very select kind of housing society, who deserve this relief and couldn't be misused by other cooperative societies. 10.4. Proposal 3 -To provide preferential tax treatment to free houses provided to slum dwellers in a slum rehabilitation/ redevelopment project and mechanism of taxing TDR handed over to builder by Government the....
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.... lease of land (i.e. stamp duty of around 5-7% in various States and GST of 18% on the same transaction) which was a major hurdle in promoting industry in Punjab. He added that it would also lead to creation of employment and generation of revenue. He therefore, requested the Council to agree with the suggestion of the GoM. 10.10. The Additional Chief Secretary. Commercial Tax Department, Uttar Pradesh stated that the suggestion from Uttar Pradesh regarding exempting GST in the case of private person or entity offering land on lease for development of infrastructure for financial business, the associated condition should be that it should have been approved by the Government because in their industrial policy they had scheme of private industrial parks which are 100% owned by the private person or entity but those are approved by the State Government through a rigorous process and adequate safeguards and therefore instead of granting exemption only to entities with 20% ownership of Government, same could also be allowed to lease of land by private entities which did not have any Government ownership otherwise they might not be able to compete with the Government. 10.11. In view o....
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....and (thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations) Undertakings or any other entity having 20% or more ownership of Central Government, State Government, Union Territory to (a) industrial units or (b) developers in any industrial or financial business area, might be exempted from GST. ii. In case of breach of land use subsequently, (i.e. from industrial use to any other use), the exemption might be withdrawn and GST with interest and penalty might be recovered jointly and severally from the entity that had availed the exemption originally and all lessees who had subsequently purchased or entered into (sub lease) agreement with original supplier (lessor) and subsequent buyers / owners. iii. The condition above (sl. no. ii) should be monitored and enforced by the respective State Governments by issuing necessary order in this regard. b. This exemption shall be effective from 1st January, 2020. c. Further, the Council also decided to refer the issue with respect to the second portion of the first proposal relating to rate levy of GST on long term ....
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....and efforts for seeking refund on small manufacturers of these bags. This would make investment in the sector unviable. These woven and non- woven bags and sacks of polypropylene and polyethylene (whether or not laminated) were used in a number of applications such as packaging of cement, fertilizer, sugar, sponge iron/mineral packing etc. Increase of GST rate to 18% might not increase the cost of the bags to the end-consumer as this was a B2B product and full ITC of the GST paid on bags was available to the user industry. In fact, it would remove the inverted duty structure and accumulation of ITCs with the manufacturers of these bags. Moreover, FIBC classified under HS 63053200 were intermediate goods used in a number of industries for bulk packing and transportation of goods. ITC on GST paid on these goods was available to these users. The JS, TRU-I proposed, that to have uniform tax rate on all types of such bags, the GST rates on woven and non-woven bags and sacks of polypropylene and polyethylene whether or not laminated (classified under 3923 or 6305) including Flexible Intermediate Bulk Containers (FIBC) may be considered for a raise from 12% to 18%. The Secretary proposed ....
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....scussed in detail in the Officers' Meeting on 17th December 2019. The presentation made in this regard is annexed as Annexure 8. He stated that the rationale of recommendations was to improve compliance and simplify processes. He also stated that non-filers and late filers of returns had been a major issue in the GST regime, though some States such as Uttar Pradesh had dealt with the issue well, there had been no uniformity pan India in dealing with the same. Fie stated that the Law Committee recommended to issue a Circular for dealing with non-filers of returns under Sections 39, 44 & 45 of the GST Act. He further stated that some of the States were already issuing notices and the objective of the proposed draft circular was to make the process uniform and to improve due date filing of returns which has a direct correlation with the revenue. The draft circular delineated various steps vis-a-vis the return defaulters from issuing of a system generated message to notice in FORM GSTR-3A followed by best judgement assessment and ultimately, if the return was not filed for 6 months then initiation of action under Section 29 of the GST Act for cancellation of registration was proposed. ....
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....quirement of amending Section 49(4) of the GST Act, and that it would be prudent that a new rule may be drafted using the existing powers under law and accordingly, it was proposed that Rule 86A might be inserted so as to block ineligible input tax credits and control the menace of fake invoices immediately. The seventh amendment recommended was for providing a system generated Tax Deduction at Source (TDS) certificate by amendment in Section 51(3) and doing away with the late fees requirement by omission of Sub-Section 4 of Section 51 of the GST Act. The eighth amendment proposed was to carry out certain amendments in Sections 122 and 132, so as to insert necessary provisions to make the person receiving the benefit of a fraudulent transaction liable for penalty and arrest. The Principal Commissioner, GST Policy Wing, CBIC stated that presently, the person who availed the fake ITC only was liable for penal provisions. The objective of the proposed amendment was to align the liability of the mastermind with the person who was taking the fake ITC. The ninth amendment proposed was to insert in Section 140 of the GST Act enabling provisions to prescribe the time-limit and the manner o....
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....he agenda circulated. 18.1. He further stated that while in the Central Excise/Service Tax regime such an arrangement existed in the form of Regional Advisory Committee at the Zonal level, no such formal arrangement existed, under the GST regime to tackle grievances of specific! general nature at the Zonal' Commissionerate/ State level. Accordingly, it was proposed to operationalize a Grievance Redressal Committee (GRC) at Zonal/State level with membership of both CGST and SGST officers, representatives of trade and industry and other relevant officers of GSTN. 18.2. The constitution of the said Grievance Redressal Committee, its functions and mandate were proposed in the agenda as follows: A. Constitution of the Committee: i. Zonal Principal Chief Commissioner/ Chief Commissioner of Central Tax (Co- chair) ii. Chief Commissioner/ Commissioner of State Tax (Co-chair) iii. Representatives of various Trade Associations - 12 in number iv. Representatives of prominent Associations of Tax Professionals like Chartered Accountants, Tax Advocates, Tax Practitioners etc. -4 in number v. Nodal officer of ITGRC of the Central Tax and Nodal officer of ITGRC of the State Tax. v....
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....d develop a portal for recording all such grievances (including their scanned images) and their disposal. It would be the responsibility of the Co-chairs lo ensure timely entry of the grievances and updating the status of their disposal on the portal. b) the nodal officers of GSTN, Policy Wing of CBIC and GST Council Secretariat Would also be able to update status of action taken at their end. The details of action taken on all issues would be displayed on the portals which would be available for viewing by all stakeholders to check the status of' the resolution. 18.4. The above proposal was placed before the GST Council for consideration and approval. The Council after deliberations approved the proposal. 19. For Agenda item 7, the Council considered and approved the constitution along with the functions and mandate of the Grievance Redressal Committee as contained in the agenda. Agenda Item 8: Status of Group of Ministers (GoMs) constituted for various agenda items 20. The Secretary asked Dr. Rajeev Ranjan, Special Secretary, GST Council Secretariat to present the status of various GoMs constituted on the recommendations of the Council for different agenda items. The Speci....
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....licy Wing, CBIC to place the agenda before the Council. The Principal Commissioner, GST Policy Wing, CBIC stated that in the 37th Meeting held on 20.9.2019, the Council had ratified all the notifications, circulars and orders issued before 11.9.2019. He thereafter made a presentation (attached as Annexure 8) listing out all the notifications, rate and non-rate, of CGST, UTGST, lGST and Compensation Cess, Circulars and removal of difficulty orders issued after 11.09.2019 till 13.12.2019, under the GST Laws by the Central Government as available on www. cbic.gov.in. 23. For Agenda Item 9, the Council granted deemed ratifications to the notifications, circulars and Orders as in agenda item and the presentation (attached as Annexure 8) made during the Council Meeting, which are available on www.cbic.gov.in. Act/Rules Type Notification/Circular/Order Nos CGST Act/CGST Rules Central Tax 42 to 72 of 2019 Central Tax (Rate) 14 to 26 of 2019 UTGST Act Union Territory Tax (Rate) 14 to 26 of 2019 - ITGST Act Integrated Tax 04 of 2019 Integrated Tax (Rate) 14 to 25 of 2019 GST (Compensation to States) Act Compensation cess (Rate) 02 and 03 of 2019 Circulars Under CGST Act....
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....GST Council Secretariat had received another 22 cases vis-a-vis extended scope of ITGRC and analysis of these cases was also presented before the committee (Agenda 3). 26.3. Ii was also observed by GSTN that 04 cases of TRAN 1 had been brought twice before the ITGRC in 6th and 7th Meeting with wrong description and recommendations based on incomplete facts, which needed reconsideration. GSTN had again examined the system logs of 04 cases and presented them before the Committee for appropriate decision (Agenda 4), 26.4. After detailed discussion, the 8th ITGRC decided and had recommended as under: - Recommendation for Agenda 1, Agenda 3 and Agenda 4 for (A) 491 Cases presented through GSTN (Agenda 1): i) To allow filing of TRAN-1 in total 137 cases of TRAN-1 & TRAN-2 belonging to Category 'A' as per Annexures indicated in column No. 3 and 4 of Table-2 (136 cases of TRAN-1) & Table 4 (01 case of TRAN-2 in Category 'A') on account of technical/system issues as explained at paragraph 5 and paragraph 7 of Minutes in accordance with the Law Committee recommendations regarding consequential benefits related to filing of TRAN 1. ii) Allowed GSTN to withdraw two (02) cases (one of e....
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.... Council Meeting) were received and placed before 4th ITGRC on 12.02.2019. Hence, it was recommended by the Committee that (1st Council Secretariat might send another reminder to all States and Centre reiterating that the case details be checked; certified and it should also be clearly stated that the case was covered by the decision of 32nd GST Council Meeting along with clear recommendations from the State/Centre before sending by the concerned Jurisdictional Commissioner. Accordingly, 179 cases received till 31st March 2019 were placed before 6th ITGRC on 27.05.2019 while 22 cases were placed before 8th ITGRC which contained many of the cases that were found incomplete in 6th ITGRC. Till then, as no case has been allowed to file TRAN-1/TRAN-2 in accordance with the extended scope of ITGRC, therefore, such emerging issues before ITGRC were also discussed in the Committee as per Agenda 2. 26.5.1. In respect of Agenda 2 i.e. emerging issues in respect of cases involving non-technical glitches, it was discussed and recommended by ITGRC that for cases involving non-technical glitches, the process of examination by ITGRC might be redesigned and a pragmatic approach was required on th....
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....s issues related to the National Anti-profiteering Authority (NAA) and stated that this agenda was discussed in the Officer's Meeting held on 17th December 2019. The quarterly performance report of National Anti-profiteering Authority along with performance reports of DGAP, Screening Committee and State Level Screening Committee for the quarter (July, 2019 to September, 2019) of the financial year 2019-20 was placed before the Council for information. 28.1. Performance of National Anti-Profiteering Authority: Opening Balance No. of Investigation Reports received from DGAP during the quarter Disposal of Cases (during Quarter) Closing Balance Total Disposal during quarter No. of cases where Profiteering established No. of cases where Profiteering not established No. of cases referred back to DGAP 50 39 2 1 1 3 84 28.2. The final disposal of 2 cases by the NAA was as under: Sr. No. Order No. and Date of Order Respondent Amount of Profiteering (Rs.) 1 46/2019 dt. 04.07.2019 HP India Sales Nil 2 47/2019 dt. 6.09.2019 Paramount Propbuild Pvt. Ltd. 3,69,26,963 28.3. In addition, NAA had been conducting outreach program across the country to sensitize the juri....
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....February, 2020. B. New Return System 30.2. He updated on the extent of trial use of ANX-1 and ANX-2 in Centre and States till 15.12.20 19 and also shared the status of development and deployment of ANX1 and ANX2 in his presentation on 17.12.20 19. The New Return was proposed to be effective from 1.04.2019. He further informed that workshops were conducted on New Return in association with FICCI, PHD Chamber of Commerce, ASSOCHAM, CII and in coordination with Centre & State Tax Administrations. C. Integrated refund system with disbursal by single authority 30.3. As regards updates on disbursement of refund through PFMS, CEO. GSTN, presented on 17.12.2019 that till 16.12.2019, total number of RFD-05 issued were 16,515 & out of which PFMS had accepted 7699 cases, rejected 61 cases, disbursed 5912 cases while 2400 cases were under processing. He had also presented the data as on 15.12.19 regarding refund applications which were not acknowledged and pending for more than 60 days (both State-wise and CBIC). D. Generation of Electronic Invoice Reference Number 30.4. The CEO, GSTN presented the advantages of e-invoice Reference Number and that there was a need for standards to ens....
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....e was no variance from the recommendations of the GST Council on the GST rate on specialized and industrial fabrics of Chapte₹ 56 to 59 and the notifications was issued by the Central and State Governments in pursuance of these recommendations. He further stated that the GST rates on fabrics was discussed ii detail in the 15th GST Council Meeting held on 3 June, 2017 and the OST rates were prescribed on the recommendations of the Council. The rate of 5% was prescribed on fabrics used for making apparels. The GST Council had recommended 12% GST rates on specialized and industrial fabrics. The Council had discussed the request for reduction in tax rates on fabrics of Chapte₹ 56 to 59 from 12% to 5% in various meetings after the rollout of GST. The Council did not recommend any change in the tax structure on these goods i.e. technical textiles and specialized fabrics of Chapte₹ 56 to 59. He submitted that as per the directions of the Hon'ble High Court, the copy of order dated 11.11.2018 of the Hon'ble Delhi High Court was also placed before the Council along with his submissions. 33. For Agenda item 14, the Council took note of the order dated 11.10.2019 of the Hon....
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....2018-Ad. 1C(CESTAT)] dated 21.08.2019. * State and Area bench as recommended by the GST Council till 36th GST Council Meeting had also been notified by Department of Revenue. 34.2. Further, in the 37th Meeting of the GST Council on 20.09.2019 had recommended location of State Bench and Area Bench in respect of following 4 States as under: SI. No. Name of States/Union Territory Location for State Bench Location for Area Bench 1. MeghaIaya Shillong No bench 2. Mizoram Aizawl -do- 3. Rajasthan Jaipur Jodhpur 4 Karnataka* Bengaluru Two Area Bengaluru benches at Bengaluru * State bench of Karnataka at Bengaluru is already created. 34.3. Now, request from Madhya Pradesh had been received to create a State Bench at Indore, while two more requests had been received from Meghalaya and Punjab seeking amendments in the earlier recommendations of GST Council for creating bench at Shillong and Chandigarh respectively. Meghalaya had also requested to club their State bench with the State bench of Assam at Guwahati, which was notified as a common bench for Arunachal Pradesh, Manipur, Nagaland & Sikkim. Punjab had requested to change their State bench from Chandigarh to Lu....
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....g the taxpayers for filing GST returns. On analysis it was found that in FY 2018-19, the total gap in FORM GSTR-2A and FORM GSTR-3B was 13%. Therefore, approximately 13% of the total credit was lying unmatched in the system currently. He, therefore, proposed that the Law Committee had recommended that in the interest of revenue and to increase the proportion of matched credit in the system, Rule 36(4) be amended to restrict input tax credit on missing invoices for any recipient to 10% of the total supplies received in his FORM GSTR-2A from his suppliers. 3. Credit bIocking in specific instances 35.2. Principal Commissioner, GST Policy Wing, CBIC initiated the discussion stating that during investigations it had been accepted by the persons/registered persons that the input tax credit that had been passed on was fake credit as the underlying invoices that had been passed on were fake invoices. In course of investigation, the recipients who had availed the said input tax credit had also been identified (₹ 9028 crore by Centre and ₹ 2740 crore by the States). Section 16 required ineligible credit was to be reversed in the return which was not happening as the return FORM....
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.... Act was automatically extended. Therefore, all forms except GSTR-8, GSTR-9 arid GSTR-9C might be extended by the State Commissioners on recommendation of the Council. 35.5. The Hon'ble Council Member from Tamil Nadu in his written speech suggested that a general rule may be introduced to enable manual issue of notice, filing of objection, grant of time and personal hearing and passing of orders and communication of any decision by the proper officer with their signature arid serve the same through the method of service as per Section 169 of the CGST/SGST Act, till such time all the business processes are made available electronically by the States and Centre. It was also suggested that steps may be taken for establishing helpdesks in other languages also, in addition to the existing Hindi and English languages and that they were ready to bear the cost of creating Tamil Helpdesk in GSTN. 36. Further, the Agenda Item 15(iii) and Agenda Item 15(iv) were discussed in the Agenda Item 5 and 10 respectively. 37. For Agenda Item 15, the Council approved the following: i. Creation of the State and Area benches of the Goods and Services Tax Appellate Tribunal (GSTAT) as below: Sl. No.....