TaxTMI 
TaxTMI 
Minutes of the 38th GST Council Meeting held on 18th December 2019
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.... Report of GoM on Real Estate on boosting real estate sector 5. Issues recommended by the Fitment Committee 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 ....
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....he Hon'ble Chairperson asked the Secretary to take up the individual agenda items for consideration of the Council. Agenda Item 1: Confirmation of the Minutes of the 37^th GST Council Meeting held on 20^th September. 2019 4. The Secretary informed that the first agenda item was the confirmation of the Minutes of the 37^th GST Council Meeting (hereinafter referred to as Minutes) held on 20^th 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 17^th 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 Rs. 600 crores on account of Sales Tax.) with the following version: 'They also suffered loss of VAT to the tune of Rs. 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 (1^st....
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....eplace the sentence 'The Hon'ble Minister from Odisha stated that if any taxpayer did not provide the Aadhar number, his refund should be restricted.' in paragraph 49.4 of the Minutes with 'The Hon'ble Minister from Odisha stated that if any taxpayer did not provide the Aadhar number, his refund should be restricted, till he complies.' 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 Rs. 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 34^th 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 ....
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..... Singh Deo, the Hon'ble Minister from Chattisgarh stated that time and again we had reminded ourselves about the federal nature of our polity and the constitution of GST Council. Therefore, the States should be reassured again as to what was the status of the single Member State and if a State had any issue and raised it to be included 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 17^th 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....
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....two rates of GST on lottery. Punjab was willing to consider lower uniform rate, if there were legal difficulties with rate differential. Therefore, the Convener of the GoM directed that the matter be placed before the GST Council and the Council decide appropriate rate structure on the supply of lottery Given that this is a sin good, rate of tax should 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 ....
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....itical mandate to change his stand and the Council might call for division and decide the issue of differential treatment of the lotteries. Dr. Himanta Biswa Sarma,. the Hon'ble Minister from Assam stated that there had been enough debate on this issue. He added that he appreciated the views expressed by the Hon'ble Minister from Kerala but the North Eastern States too had their own 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 d....
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....the Hon'ble Supreme Court of India had required us to give an opinion by 15.01.2020 then the Council should decide on the issue. He also observed that till now all the decisions related to GST had been taken by consensus in the Council and till now it had never happened that a decision was taken by the Courts instead of the Council. He also stated that till date none of the decision on 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 bein....
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....uncil should try to reach to a decision by consensus and not by having division on the matter. The Hon'ble Deputy Chief Minister of Bihar stated that GST Council had been discussing this issue since long. He added that as stated by some of the Members, Goa and the North-Eastern States had been losing revenue due to this differential rate while they did not have many other sources of revenue. 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....
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.... reconsider and not deviate from the tradition. He wondered as to what if the Council decided something on the matter and the same got challenged/decided otherwise in the awaited decision of the Hon'ble Supreme Court. Therefore, he suggested to arrive at any decision by consensus. Shri Dushyant Chautala, the Hon'ble Deputy Chief Minister of Haryana stated even though lottery was banned in Haryana 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 ....
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....achal Pradesh stated that as one of the Member of the GoM on Lottery, they had earlier recommended to have a uniform GST rate on State Run Lottery and State Authorised Lottery and he reiterated the same. He further stated that they endorsed the views expressed by the Hon'ble Minister from Assam with respect to the North East. Shri Jishnu Dev Varma, the Hon'ble Deputy Chief Minister of Tripura stated 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 ....
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....na, Uttarakhand Goa etc. stated that so far, we had run the Council by consensus and we should try to continue the same. The Hon'ble Minister from West Bengal suggested that if the Council felt that it would let the States do what they had with respect to taxation on lottery or change it as they wished. It could lead us to the solution of this impasse. The Hon'ble Chairperson once again on the behalf of 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 se....
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....e racing and Casino were yet to be finalised, while Andhra Pradesh supported 28% GST on lottery. The GST Council thereafter decided to levy 28% GST on lottery by consensus. The Hon'ble Minister from Telangana also requested the Chairperson to include the State of Telangana in the GoM on Lottery. The Hon'ble Minister from Kerala requested for grace period of two months for implementing the new rate of 28% so as to enable 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 ....
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....; rate calibrations for addressing the inverted duty structure; compliance measures other than those currently under implementation; and any other measure to augment revenue. A meeting had also been convened of the Committee of Officers to suggest measures to augment GST revenue collection and administration on 10.12.2019 where valuable inputs had been obtained from the SGST officials. Several States had also provided written suggestions on the above. 8.2. Continuing 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.....
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....om Kerala stated that projections of revenue and compensation Cess collections had to be based on the rate-structure, the compliance levels and the current slow-down in the economy. These three factors would determine the compensation gap and thus, a simple linear projection might not give the complete picture. He stated that there was a short-term problem that had created this gap. He highlighted that the then Chairperson of the GST Council, Shri Arun Jaitley had stated 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 7^th 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 gro....
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....tated that in case of brick kilns too, the State was observing a decrease in tax realization from Rs. 550 crores in VAT regime to Rs. 75 crores in GST regime. He stated that all such anomalies in different products might be observed and be corrected through capacity-based levy or such methods. He further requested that Uttar Pradesh should be included in the Group of Ministers on Analysis of Revenue from GST. He further stated that while the 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 14^th GST Council Meeting held on 18^th & 19^th May 2017 in Srinagar. Further, in the subsequent meetin....
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....whether this had really happened. He further stated that he was happy with the compensation given because prior to GST, the VAT revenues of Assam were growing at the rate of 9%. while GST had given them an additional 5% through way of assured growth rate of 14% for compensation. He felt that before questioning the Central Government, the States also needed to look at as to what was the growth in VAT revenue prior to GST and also whether the Slates had done enough to 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 23^rd 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....
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....me to come. 8.14. Thereafter, the Hon'ble Chairperson informed the Council that the States of Uttar Pradesh and Jammu & Kashmir (UT with Legislature) would be making presentations on the best practices in GST and measures taken by the Govt. of Jammu & Kashmir to improve revenue collections. Thereafter, the Hon'ble Minister from Uttar Pradesh asked Shri Alok Sinha, Additional Chief Secretary, Commercial Tax Department, Uttar Pradesh to make the presentation (attached as 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 ....
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....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 agreement with original supplier and subsequent buyers / owners. iii. The condition above (si. no. ii) should be monitored and enforced by the State Government. iv. GST @ 5% might be levied on long term lease of land (thirty years, or more) of industrial plots or plots for development of infrastructure for financial 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 ....
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....ty having 20% or more ownership of Central State/ UT Government, might be levied GST rate of 5% and the Council could decide on the applicable rate. He also requested Hon'ble Minister from Punjab to present his views. 10.9. The Hon'ble Minister from Punjab stated that the rationale behind the proposal and Punjab's request was long term leasing of land from the point of view of Punjab's New Industrial Policy and the role this exemption could play in promoting the Make-in-India campaign. He further stated that presently there was double taxation on 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 sh....
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....ggestions of the Secretary. 10.13. The Secretary also suggested that effective date for implementation of the recommendation of the Council above could be from 1^st January 2020.The issues discussed in proposal 2, proposal 3 and proposal 4 as per the report of the GoM were still pending before the GoM on Real Estate. The Council agreed to the same. For Agenda item 4, the Council recommended the following: - a. to exempt the transactions along with the two associated conditions i.e. i. Upfront amount payable in respect of service by way of granting of long term lease of' land (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 recove....
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....ation was issued vide Circular No.80/54/201 8-GST dated 31^st December 2018. However, disputes continued and were aggravated due to multiple divergent Advance Rulings passed. To resolve the issue, the Council recommended a uniform rate of 12%. However, subsequent requests had been received from the trade associations stating that the major basic constituent ingredient for these bags was HDPE/PP granule which attracted 18% GST. They had further stated that 12% GST rate on woven and non-woven bags and sacks of polypropylene and polyethylene was leading to inverted duty structure and increasing the compliance burden 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 structu....
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....ible Intermediate Bulk Containers (FIBC) from 12% to 18% with effect 1^st January 2020. Agenda Item 6: Issues recommended by the Law Committee for the consideration of the GST Council Agenda Item 6(i): Standard Operating Procedure to be followed in case of non-filers of returns 14. The Secretary asked Shri Yogendra Garg, Principal Commissioner, GST Policy Wing, CBIC to initiate the discussion on the issues recommended by the Law Committee for the consideration of the GST Council. The Principal Commissioner, GST Policy Wing, CBIC initiated the discussion by stating that the recommendations of the Law Committee were discussed in detail in the Officers' Meeting on 17^th 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 retur....
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....d Act. The third amendment proposed was to allow ITC on Debit Notes by linking it to the date of issuance of the Debit Note by amending Section 16(4) of the GST Act. The fourth amendment was to allow a taxpayer who had taken voluntary registration to cancel it by amending Section 29 of the GST Act. The next amendment proposed was for amending Section 31 so as to align section 31(2) with 31(1) regarding manner of issue of invoices for services as well. With respect to the sixth amendment proposed, the Principal Commissioner, GST Policy Wing, CBIC stated that in Officers' Meeting on 17th December 2019, it was viewed that there was no requirement 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. ....
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....ST Policy Wing, CBIC to introduce the agenda item. The Principal Commissioner, GST Policy Wing, CBIC, while introducing the agenda item also made a presentation (attached as Annexure 8). He stated that in view of the Writ petition W.P.(C) 9575/2017 & C.M. no. 38987/2017-Sales Tax Bar Association (regd.) & ANR in Hon'ble High Court of Delhi on non-availability of many functionalities on GST Portal, a proposal for suitable mechanism for grievance redressal at ground level was felt necessary. Therefore, a proposal for creating Grievance Redressal Committee had been placed for approval of the Council. The background details were mentioned in the 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 ....
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.... the same would be resolved by GSTN in a time bound manner, preferably within one month. D. Periodicity of Meeting of the Committee - The Committee would meet once every quarter or more often as the Co-chairs may decide. E. Mechanism of Working of the Committee: The stakeholders would send their grievances/ suggestions to the Secretary of the Committee, who would place the same before the Committee. Further, the Secretary of the Committee should also submit a quarterly progress report to the GST Council Secretariat as well as to the GST Policy Wing, CBIC. 18.3. Further, GSTN had also proposed (Annexure B to the Agenda 7) that, a) to ensure transparency and time bound handling of grievances and accountability, they would 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 ....
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....ntioned that a timeframe for the GoM on IGST settlement may be fixed for resolving the issue of unsettled lGST accumulated amount for the year 2017-18. 21. For Agenda item 8, the Council decided to continue with the 5 GoMs namely: GoM on IT challenges in GST implementation, GoM for boosting Real Estate Sector under GST regime, GoM on Analysis of Revenue from GST, GoM on movement of Gold and Precious Stones and GoM on IGST settlement. 21.1. The Council also decided to refer the pending matter relating to casinos, horse racing and online gaming to law/Fitment Committee. Agenda Item 9: Deemed ratification by the CST Council of Notifications, Circulars and Orders issued by the Central Government 22. The Secretary asked Principal Commissioner, GST Policy Wing, CBIC to place the agenda before the Council. The Principal Commissioner, GST Policy Wing, CBIC stated that in the 37^th 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....
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....3^th August 20 19 to resolve grievance of the taxpayers arising out of technical and non-technical issues. (Minutes of the Meeting attached as Annexure A of this agenda Item). 26.1. As per the agenda note, a total 491 cases of TRAN-1/TRAN-2 had been examined by GSTN (Agenda 1) and presented before the Committee. Out of these, 442 cases were sent by Nodal officers and 49 were court cases. All above cases had been categorized broadly reason-wise in two major categories as 'A' and 'B' by GSTN team. Category 'A' included cases in which the taxpayer could not apparently file TRAN 1/TRAN 2 because of technical glitches while Category 'B' included cases where no technical issues were found from the system logs in filing TRAN 1/TRAN 2. 26.2. In pursuance of decision in 32^nd GST Council Meeting, regarding extended scope of ITGRC, 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 7^th Meeting with wrong description and recommendations based on incomplete fac....
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....er ITGRC proceedings, it was observed that Nodal officers as well as GSTN had received various references and Writ Petitions where non-technical issues were also involved. The ITGRC could not handle those cases, as it was not empowered to take any decision on these issues. Further, on account of no appeal mechanism in respect of Forms TRAN- 1/TRAN-2 under GST law, taxpayers were approaching various Hon'ble High Courts for grievance Redressal. In 32^nd GST Council Meeting, it was decided to enhance/expand the scope of the ITGRC to include those cases where no technical glitch/problem was evident and the Commissioners would after examination recommend such cases but GSTN and GST Council Secretariat were receiving cases without proper scrutiny. Till 31^st January, 2019, 62 cases (with incomplete details and not in conformity with the spirit of the decision of the 32nd GST Council Meeting) were received and placed before 4^th ITGRC on 12.02.2019. Hence, it was recommended by the Committee that (1^st 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 cover....
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....d by GSTN in order to maintain the audit trail and generate report, if required. e. If deemed necessary, post audit of the taxpayers could be carried out by tax authorities in a time-bound manner, who would claim transitional credit above a particular threshold. f. In light of above, ITGRC could revisit the 'Category A' cases identified as non technical cases placed in Annexure 3 of 6^th ITGRC and Agenda 3 of the 8^th ITGRC, taking inputs as required from GSTN. 26.6. The decisions/recommendations as per attached Minutes of the 8^th ITGRC were placed for information of the Council. 27. For Agenda item 11, the Council took note of the decisions/recommendations of the 8^th Meeting of the IT Grievance Redressal Committee. Agenda Item 12: Quarterly Report of the NAA for the quarter July to September 2019 for the information of the GST Council 28. The Secretary introduced the Agenda item pertaining to various issues related to the National Anti-profiteering Authority (NAA) and stated that this agenda was discussed in the Officer's Meeting held on 17^th December 2019. The quarterly performance report of National Anti-profiteering Authority along with performa....
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....s Annexure 9 to the Minutes. Following were the salient features of the presentation of CEO, GSTN. A. GST EWB System - FASTag Integration 30.1. The MoU withlndian Highways Management Company Limited (IHMPCL) & GSTN had been signed on 14.10.2019. a. The MoU was for collaboration and working together for implementation track and trace mechanism to track the goods carrying vehicles through FASTag at the toll plazas across the country. b. NPCI was extending its NPCINet to E-Way Bill system. i. Routers at Primary Data Centre (at Delhi) & DR Centre (at 1-lyderabad) of NIC had been delivered. ii. Lease line (link) had also been delivered. Installation process was in progress. c. NPCI had already extended its network to the EWBS data center. Network testing and integration was completed. d. APIs were ready and available on sandbox. Testing on simulators was complete. Sandbox would be made available by NIC by 15^th January 2020. Sample data from NETC would be used for testing. e. Integration was expected to be completed by mid-February, 2020. B. New Return System 30.2. He updated on the extent of trial use of ANX-1 a....
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....ication on GST rate on fabrics and articles of textiles fal1in in ChapteRs. 56 to 59 of the tariff pursuant to the order of the Hon'ble High Court of Delhi in Writ Petition (Civil) No.597 of 2019 32, The Secretary asked JS, TRU-I to introduce the agenda item to the Council. The JS TRU-l, thereafter, submitted that the Hon'ble High Court of Delhi has directed vide its order dated 11.10.2019 to place before the Council the issue agitated before them and also to place a copy of the said order of the Hon'ble Delhi High Court. The issue brought before the Hon'ble High Court was that the Council in its 15^th Meeting had prescribed that all fabrics were to be taxed at the rate of 5% and not 12% irrespective of whether they were used for making apparels or for specialised and industrial fabrics. The Department of Revenue filed affidavit and submitted before the Hon'ble High Court that the GST Council had made a specific recommendation to prescribe 12% GST rate on specialized and industrial fabrics of ChapteRs. 56 to 59 which were notified by the Central and the State Governments and thus there was no variance from the recommendations of the GST Council on the GST rate on specialized and....
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....reation of National Bench of GST Appellate Tribunal at New Delhi and three Regional Benches at Mumbai, Chennai and Kolkata. • Union Cabinet approved creation of National Bench of the GST Appellate Tribunal at New Delhi. • National Bench at New Delhi had also been notified vide Notification No. S.O. 1359(E)-ENo. 1/2019,[F.No.A.50050/99/201 8-Ad. 1C(CESTAT)] dated 13-03- 2019 issued by Department of Revenue. • Till the 37^th Meeting , the Council had recommended setting up of State Benches and Area Benches in 29 States and 5 UTs as per request received from States. It had also recommended to separately consider constitution of benches in Uttar Pradesh due to court cases. It also took note of constitution of Jamnu & Kashmir GST Appellate Tribunal in terms of proviso to Section 109(6) of the CGST Act, 2017. • The Rules for the GSTAT called the Goods and Services Tax Appellate Tribunal (Appointment and Conditions of Service of President and Members) Rules. 2019 were notified by Central Government as per the recommendations of the GST Council in 28^th meeting vide notification No. G.S.R. 584(E)- [F.No.A.50050/99/2018-Ad. 1C(CESTAT)] dat....
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....ilable in FORM GSTR-2A for a taxpayer. Presently late fees for delay in furnishing of FORM GSTR-1 by the due date was Rs. 20 per day for NIL filers and Rs. 50 per day for others. The maximum late fee was Rs. 10,000 per month (Rs. 5,000 under the CGST/SGST Act). 1) Many taxpayers, had represented that they were willing to file their FORM GSTR 1 but they were not willing to pay Rs. 10,000 per month of late fee. This was one of the key reasons for low or no filing of FORM GSTR-1. 2) It might be noted that in the current GST' system, there was no procedure for part payment/invalid return. Therefore the only way taxpayers could declare admitted liability was through FORM GSTR-1. This could be later recovered with interest by the Government. Therefore, in order to improve filing of FORM GSTR-1 the following were proposed: a. A one-time amnesty scheme to file all FORM GSTR-1 from July 2017 to November, 2019 might be given to taxpayers. There would be no late fees for filing such return if the same was filed till 10^th January 2020. b. E-way bill generation might be blocked for non-filing of any two FORM GSTR-1 (similar to FORM GSTR-3B) 2. Credit avai....
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....utility for tiling of FORM GSTR-9C had not been deployed yet (till 16.12.2019). Taxpayers were expressing concern that they would get very little time for compliance. Accordingly, it was proposed to extend the due date for filing the FORM GSTR-9 and FORM GSTR-9C for FY 2017-18 from 31.12.2019 to 31.1.2020. 5. Return extension for North-Eastern States 35.4. The Principal Commissioner, GST Policy Wing, CRIC stated that internet had been suspended in many of the North-Eastern Areas with curfew also imposed in many of the territories. In light of this, many trade bodies had expressed their inability to file their return FORM GSTR-1, GSTR-7, GSTR-8, GSTR-9 and GSTR-9C.Therefore. Assam had requested for extension in due dates of filing FORM GSTR-1, GSTR-7, GSTR-8. GSTR 3B, GSTR-9 and GSTR-9C. Likewise, Manipur and Tripura had also requested for extension in due dates of filing in certain forms. The Principal Commissioner, GST Policy Wing requested the other North-Eastern States to inform if there was need to extend due dates in their regions. It was further stated by him that Section 39(6) of SGST Act empowered State Commissioners to extend the due date of filing their respective r....
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....or filing of FORM GSTR-9 / 9C for FY 2017-18 to 31.I.2020. (e) To extend the last date for filing returns in specified forms in case of Assam and certain other North-Eastern States on account of suspension of internet in these regions. iii. As recorded under Agenda Item No.10 the Council took note of the decisions of the 34 GIC Meeting held on 02.12.2019. iv. The proposal in agenda item I 5(iv) to increase the GST ratcs from 12% to 18% 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), with effect from l January 2020. Other issues 38. Finally, The Secretary stated that he was putting forth a proposal which may be considered by the Council that changes in GST rates normally should be carried out only once in a year because otherwise, frequent rate changes create a lot of uncertainty. He requested the Council that they might consider it for acceptance later. It was further suggested by the Hon'ble Member from Uttar Pradesh that the revenue implication of every rate change should also he placed before the Council, alon....
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....ster for Local Self Government, Urban Development and Housing, Law and Legal affairs, Parliamentary affairs Minister for Tourism, Civil Aviation, Commerce and Industries Minister for Fisheries and Personnel & Administrative Reforms 53 CHAIRMAN'S INITIALS MINUTE BOOK Sl No State/Centre 29 Telangana 30 Tripura 31 Uttarakhand Name of Hon'ble Minister Shri T. Harish Rao Shri Jishnu Dev Varma Dr. Harak Singh Rawat 32 33 Uttar Pradesh West Bengal Shri Suresh Kumar Khanna Dr. Amit Mitra Charge Finance Minister Deputy Chief Minister Minister for Forests & Wild Life, Environment & Solid Waste Disposal Finance Minister Finance Minister CHAIRMAN'S INITIALS 54 554 JAYNA BOOK DEPOT Ext. 1940 JAYNA MINUTE BOOK Annexure 2 List of Officials who attended the 38th GST Council Meeting on 18th December 2019 Name of the Officer Shri Pranab Kumar Das Shri Sandeep M Bhatnagar Dr. Rajeev Ranjan Sl. No State/Centre 1 Govt. of India Dr. A B Pandey 2 Govt. of India Dr. Krishnamurthy Subramanian 3 Govt. of India 4 Govt. of India Dr. John Joseph 5 Govt. of India 6 Govt. of India 7 Govt. of India 8 Govt. of India 9 Govt of India 10 Govt. ....
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....k Chandra Gupta Shri Dev Kumar Rajwani Shri Amitabh Kumar Shri S.K. Rahman Shri Dheeraj Rastogi Smt Ashima Bansal Shri Rajesh Agarwal Shri G.S. Sinha Shri Jagmohan Ms. Ujjaini Datta Shri Arjun Meena Shri Rakesh Agarwal Charge Dy. Comm., GST Policy Wing, CBIC Asst Comm, GST Policy Wing, CBIC Dy. Commr., TPRU Dy. Commr., TPRU PS to Union Finance Minister PS to MoS (Finance) OSD to Revenue Secretary OSD to Chairman, CBIC OSD to Chairman, NAA Joint Secretary Joint Secretary Joint Secretary Joint Secretary Director Director Director Director Shri Rahul Raja Dy. Commissioner Dy. Commissioner Under Secretary 54 GST Council Shri Nitin Deepak Agarwal Under Secretary 55 GST Council 56 GST Council 57 GST Council 58 GST Council 59 GST Council 60 GST Council 61 GST Council 62 GST Council 63 GST Council 64 GST Council 65 GST Council 66 GST Council 67 GST Council 68 GST Council Shri Mahesh Singarapu Shri Krishna Koundinya Shri SaribSahran Shri Adesh Nayak Shri Krishan Kumar Verma Ms Chanchal Soni Shri Maneesh Nemiwal Shri Om Veer Singh Shri Sumit Kumar Shri Vijay Kumar Shri Vipin Sethi Shri Sanjay Bansal Shri Rakesh Joshi Shri Pank....
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....rcotics) Commissioner, State Tax Joint Commissioner (State Tax) Additional Secretary, CTD Joint Commissioner, CTD E&TC Asst. E&TC Secretary and Commissioner, State Tax Special Commissioner, State Tax Dy Commissioner, State Tax Principal Secretary, Finance Secretary, Finance Commissioner, State Tax Additional Commissioner, State Tax Commissioner, CT 57 CHAIRMAN'S INITIALS MINUTE BOOK Sl. No State/Centre 106 Gujarat 107 Gujarat 108 Gujarat 109 Haryana 110 Haryana 111 Haryana 112 Haryana 113 Himachal Pradesh Name of the Officer Shri Pankaj Joshi Shri J. P. Gupta Shri Ridhidesh Rawal Shri Anurag Rastogi Shri Amit Agarwal Shri Vijay Kumar Singh Shri Rajeev Chaudhary Shri Sanjay Kundu Dr. Ajay Sharma 114 Himachal Pradesh 115 Himachal Pradesh Shri Rakesh Sharma 116 Jammu & Kashmir Shri P K Bhatt Shri Prashant Kumar Shri Santosh Kumar Vatsa Shri Brajesh Kumar Shri SrikarM.S 117 Jharkhand 118 Jharkhand 119 Jharkhand 120 Karnataka 121 Karnataka 122 Karnataka Dr Avinash Menon 123 Kerala 124 Kerala 125 Madhya Pradesh 126 Madhya Pradesh 127 Madhya Pradesh 128 129 Maharashtra Maharashtra 130 Manipur 131 Meghalaya 132 Mizoram 133....
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....oni Shri Sanjay Kumar Pathak Shri Gaurav Rajput Shri K Mrityunjay Shri H.K. Dwivedi Ms Smaraki Mahapatra Shri Devi Prasad Karanam Shri Khalid Aizaz Anwar Charge Commissioner, State Tax Dy. Comm, State Tax ACS cum Financial Commissioner, Taxation Deptt Advisor, Financial Resources to Chief Minister Excise and Taxation Commissioner Deputy Excise and Taxation Commissioner Secretary Finance (Revenue) Commissioner, State Tax Addl. Commissioner, GST, State Tax Dept Commissioner, State Tax Addl. Commissioner (Policy & Planning) Joint Commissioner, State Tax Special Chief Secretary Commissioner, State Tax Addl. Commissioner, State Tax Joint Commissioner, State Tax Deputy Commissioner, State Tax Assistant Commissioner, State Tax Deputy Commissioner, State Tax Deputy Commissioner, State Tax Additional Chief Secretary, CTD Commissioner, CTD Joint Commissioner, CTD Asst. Comm., State Tax Asst. Comm., State Tax Addl Chief Secretary, Finance Secretary, Finance Commissioner, CT In charge GST-PPU 59 CHAIRMAN'S INITIALS MINUTE BOOK Annexure 3 STC GOODS AND SERVICES TAX COUNCIL Agenda on Lottery 38th GST Council Meeting, New Delhi 18th December ....
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....and 'State Authorised Lotteries'. • Article 304 of Constitution of India, would have no bearing on the levy of differential GST on 'State Run Lotteries' and 'State Authorised Lotteries'. • State Run Lotteries and State Authorized Lotteries can be treated as different goods. CHAIRMAN'S INITIALS 62 62 6 JAYNA BOOK DEPOT Estd. 1949 B JAYNA MINUTE BOOK Recommendation of 37th GSTC Meeting on 20.09.2019 [Annexure VII of Agenda, Vol 3] (i) GoM on Lottery to decide the rate of GST on lottery (ii) GoM to decide on the associated issues related to Casinos, Horse Racing and Online Gaming ⚫ Decision of 37th GSTC Meeting: GoM on Lottery to meet and decide on the above two issues and bring it before the GST Council. • GoM has not been able to meet due to elections in Maharashtra. 7 Writ Petition (C) No. 961/2018 by Skill Lotto Solutions Pvt Ltd at Hon'ble SC Three main grounds by the petitioner: - (i) GST cannot be levied on lottery as 'goods'. (ii) GST on lotteries should be imposed after excluding the prize money component of the lottery ticket since the said amount never forms part of income in the lottery trade. (iii) GST cannot be lev....
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.... taxable value. Suggest any other method to address the associated issues. Another set of litigation by Online gaming portals are going on. 65 11 12 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Annexure 4 Committee of Officers to suggest measures to augment GST Revenue The 38th Meeting of the GST Council December 18, 2019 Contents.. ■Committee of officers- constitution, TOR and deliberations ▪ Revenue trends ■Compensation requirement gap projections ■Evolution of GST rate structure viz a viz RNR Committee recommendation ■Suggestions from States for revenue augmentation ■Certain scenarios for revenue trends in next two years " 66 JAYNA BOOK DEPOT MINUTE BOOK Extd. 1949 JAYNA Context After witnessing impressive growth in the fourth quarter of last FY, the GST revenue growth rate declined in recent months. The compensation requirements have increased significantly. The compensation cess collections are in adequate to meet this requirement. ■In view of these concerns, a Committee of Officers was constituted to suggest measures to augment revenue. TOR of the Committee of Officers • Systemic ....
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....ease in e way bill verifications for both in ward and outward supplies. Presently 66 per cent(approx) of the e way bill generated are verified despite having connectivity issues in the UT â–¸ Increase in the enforcement activities by way of physically verifying the goods â–¸ Verification of the business premises of all the tax payers post approval of registration > Use of red flag data provided by the GSTN particularly with respect to the return defaulters and mismatch of ITC. (.......cont) 80 87 7 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Establishment of Facilitation Centers 1. Kashmir Division TAX PAYER'S A to R CIRCLE BUDGAM BARAMULLA 11,111 (Sopore) KUPWARA ANANTNAGIR PULWAMA LOCATION OFFICE OF THE STATE TAXES OFFICER CRCLE Ata RSRINAGAR OFFICE OF THE STATE TAXES OFFICER CRCLE BUDGAM OFFICE OF THE STATE TAXES OFFICER CRCLE BARAMULLA 1,11 Sapore OFFICE OF THE STATE TAXES OFFICER CIRCLE KUPWARA OFFICE OF THE STATE TAXES OFFICER CIRCLE ANANTNAG TRE OFFICE OF THE STATE TAXES OFFICER CROLE PULWAMA ADDRESS OF FACILITATION CENTRE EXCISE AND TAXATION COMPLEX SOLNA RAMEAGH OFFICE OF THE STATE TAXES OFFICER CRCLE BUDGAM OFFICE OF T....
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....ers under GST. ▸ Deployment of the enforcement teams on the unconventional routes so as to prevent the smuggling of goods. ▸ Monitoring of top 500 tax payers Constraints > J&K being the end point consumption place face problems particularly with respect to the divisibility of the consignments below the value of rupees fifty thousand in order to avoid the eway bill generation. ▸ No check on the purchases made by the unregistered persons using Adhar or PAN and invoicing the consignments below fifty thousand. ▸ Exemption on eway bill generation on the goods supplied through post offices. ▸ Non availability of auto invoice matching system. 89 12 11 CHAIRMAN'S INITIALS MINUTE BOOK Annexure 7 H Agenda on Real Estate GST Council Meeting on 18th December, 2019 CHAIRMAN'S INITIALS Pending issues discussed by GoM in its 2nd meeting ⚫ Punjab: To exempt GST on long term lease of lands by private/ semi private bodies for setting industrial parks. ⚫ West Bengal: To exempt GST on supply of construction services provided by the Co-operative Housing Society to its members • Maharashtra: To provide preferential tax treat....
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....rawn and GST with interest and penalty shall be recovered jointly and severally from the entity that has availed the exemption originally and all lessees who have subsequently purchased or entered into lease agreement âš« The above condition shall be monitored and enforced by the State Government. Issue 2, 3 and 4: Deferred by GoM Issues Issue 2: GST on supply of construction services provided by the Co-operative Housing Society to its members Issue 3: To provide preferential tax treatment to: âš« redevelopment of old buildings where the residents enter into a JDA with the developer. âš« free houses provided to slum dwellers in a slum rehabilitation/ redevelopment project Issue 4: To review the value limit of Rs. 45 lakhs in the definition of affordable residential apartment for a metropolitan region. Reasons State of West Bengal to provide more data and examples At the time of meeting of GoM; Hon'ble finance Minister of Maharashtra had not been appointed CHAIRMAN'S INITIALS 92 22 JAYNA BOOK DEPOT MINUTE BOOK Estd. 1949 Annexure 8 JAYNA 1 PPT for 38th GST Council 18th December 2019 New Delhi december 2019 INATION TAX MARKET Agen....
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.... 2017. Notification No. 56/2019 - Central Tax (Primarily related to Simplification of the Annual Return / Reconciliation dated 14.11.2019 Notification No. 57/2019, 58/2019, 59/2019. 60/2019 and 61/2019 - Central Tax dated 26.11.2019 Statement] Seeks to extend the due date for furnishing of return in FORM GSTR-1. FORM GSTR-3B and FORM GSTR-7 for registered persons in Jammu and Kashmir Notification No. 62/2019 - Central Tax Seeks to notify the transition plan with respect to J&K reorganization w.e.f. dated 26.11.2019 31.10.2019 Seeks to notify the place of supply of R&D services related to Notification No. 04/2019 - Integrated Tax pharmaceutical sector as per Section 13(13) of IGST Act, as recommended dated 30.09.2019 Notification No. 02 /2019-Compensation Cess (Rate) dated 30.09.2019 Notification No. 03/2019-Compensation Cess (Rate) dated 30.09.2019 by GST Council in its 37th meeting held on 20.09.2019. Seeks to amend notification No. 1/2017-Compensation Cess (Rate). dated 28.6.2017 on the recommendations of the GST Council in its 37th meeting dated 20.09.2019. Seeks to disallow the refund of compensation cess in case of inverted duty structure for tobacco a....
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....sid. 1949 JAYNA Agenda 9: Deemed Ratification of Notifications, Circulars, Orders etc. (4/6) Rate notifications issued under CGST Act, UTGST Act and IGST Act, 2017 Seeks to amend notification No. 12/2017- Central Tax (Rate) to exempt Notification No. 21/2019-Central Tax services as recommended by GST Council in its 37th meeting held on (Rate) dated 30.09.2019 20.09.2019 [similar rate notification issued under UTGST Act, 2017 and IGST Act, 2017] Notification No. 22/2019-Central (Rate) dated 30.09.2019 Notification No. 23/2019-Central (Rate) dated 30.09.2019 Notification No. 24/2019-Central (Rate) dated 30.09.2019 Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to notify Tax services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019 [similar rate notification issued under UTGST Act, 2017 and IGST Act, 2017] Seeks to amend notification No. 4/2018 - Central Tax (Rate), dated the 25th Tax January, 2018. by adding an explanation on the applicability of provisions related to supply of development rights. [similar rate notification issued under UTGST Act, 2017 and IGST Act, 2017] Tax Seeks to....
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....M) industry. Circular No. 119/38/2019 - GST Clarification regarding taxability of supply of securities under Securities Lending Scheme. 1997. dated 11.10.2019 95 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda 9: Deemed Ratification of Notifications, Circulars, Orders etc. (6/6) Circulars issued under CGST Act, 2017 Circular No. 120/39/2019 GST dated Clarification on the effective date of explanation inserted in notification No. 11.10.2019 11/2017-Central Tax (Rate) dated 28.06.2017, Sr. No. 3(vi). Circular No. 121/40/2019 GST dated Clarification related to supply of grant of alcoholic liquor license. 11.10.2019 Circular No. 122/41/2019 - GST dated 05.11.2019 Generation and quoting of Document Identification Number (DIN) on any communication issued by the officers of the Central Board of Indirect Taxes and Customs (CBIC) to tax payers and other concerned persons-reg. Circular No. 123/42/2019 - GST dated Seeks to clarify restrictions in availment of input tax credit in terms of sub-rule (4) 11.11.2019 of rule 36 of CGST Rules, 2017. Circular No. 124/43/2019 GST dated Seeks to clarify optional filing of annual return under notification No. 47/201....
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....decision by circulation dated 10th October, 2019 . The proposal regarding the scope the term 'bus body building' and Perceived overlap between entries at item (id) and (iv) under heading 9988 Notification No. 26/2019- Central Tax (Rate) dated 22nd November 2019 and Circular No. 126/45/2019-GST dated 22nd November 2019 issued 32nd GIC meeting dated 16th October 2019 Issuance of Circular on fully electronic refund process through FORM GST RFD-01 and single disbursement ✓ Circular No. 125/44/2019- GST dated 18th November 2019 issued. Clarification regarding optional filing of annual return under notification No. 47/2019-Central Tax dated 9th October, 2019 • ✓ Circular No. 124/43/2019- GST dated 18th November 2019 issued. • Changes to statements 1A, 2 & 3 in Annexure-1 of FORM GST-RFD-01 Notification No. 56/2019-Central Tax dated 14th November, 2019 issued. Agenda 10 :GIC decisions post 37th GST Council Meeting (2/4) GIC decision by circulation dated 19th October, 2019 ⚫ The proposal for extension of last date for filing FORM CMP-08 for the quarter of July, 2019 to September 2019 was approved Notification No. 50/2019- Central Tax date....
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.... No. 62/2019 - Central Tax dated 26th November 2019 issued. 34th GIC meeting dated 2nd December 2019 Implementation of e-invoice scheme and QR code ✓ Notification Nos. 68 to 72/2019-Central Tax dated 13.12.2019 issued. ⚫ GIC agreed to rescind the Circular No. 107/26/2019-GST dt. 18.07.2019 ab-initio. ✓ Circular No. 127/46/2019-GST dated 04.12.2019 was issued. 98 12 JAYNA BOOK DEPOT Estd. 1949 JAYNA MINUTE BOOK Agenda Item 6(i) :SOP on non filers Issuance of a Circular to clarify Standard Operating Procedure to be followed in case of non-filers of returns • A system generated message to be sent to all return defaulters immediately after the due date; ⚫ A notice in FORM GSTR 3A to be sent by the proper officer five days after the due date of filing; ⚫ In case the return is still not filed, assessment under section 62 and order in FORM ASMT-13 to be issued and FORM DRC-07 to be uploaded (after taking into account the GSTR-1, supplies auto-populated from GSTR-2A, information available from e-way bills, and information available from any other source, including from inspection; ⚫ In case the return still remains unfurnished....
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.... days in case of a composition dealer) 100 16 JAYNA BOOK DEPOT JAYNA MINUTE BOOK Eatd. 1949 Agenda Item 7 : Public Grievance Redressal Committee (1/4) INATION TAX MARKET Creation of Grievance Redressal Committee as per order of Hon'ble High Court in the case of Sales Tax Bar Association â– Hon'ble High Court of Delhi, while examining a Writ Petition, filed by Sales Tax Bar Association, desired that a mechanism of handling of individual grievances for IT related issues be made under a retired judge of High Court. â– In a meeting called by Hon'ble High Court on 16.11.2019 with officers of GSTN, GST Policy Wing and GST Council, it was proposed to constitute Grievance Redressal Committees at Zone/ State level. â– Hon'ble High Court in its order on 28.11.2019 desired to know the constitution, structure and mechanism of such Committees through an affidavit to be filed within two weeks of the order of the Court. Agenda Item 7: Public Grievance Redressal Committee (2/4) NATION TAX MARKET â– There is presently no formal arrangement under GST regime to address grievances of specific/ general nature at the Zonal/ Commissionerate/ State level.....
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....t was found that in FY 2018-19 the total difference in FORM GSTR-2A and FORM GSTR-3B is 13% of total GSTR-2A. ■Approximately 13% of the total credit lies unmatched in the system currently ■Proposal: ➤ 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 103 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Table Agenda (3/5) NATION TAX MARKET ■During investigations it has been accepted by the persons / registered persons that the input tax credit that has been passed on is fake credit as the underlying invoices that have been passed on are fake invoices ■In course of the investigation, the recipients who have availed the said input tax credit have also been identified (Rs. 9028 Cr. by Centre and Rs. 2740 Cr. by the States) ■Section 16 requires ineligible credit is required to be reversed in the return. Reversal not happening as the return FORM GSTR- 3B are self-assessed and are on a summary basis -not possible ....
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....f Hyderabad has been delivered) of NIC delivered. ✓ Lease line (link) has also been delivered. Installation Process is in Progress. ⚫ NPCI has already extended its network to the EWBS data center. Network testing and integration is completed. • . APIs are ready and available on sandbox. Testing on simulators is completed. Sandbox will be made available by NIC by 15th Jan. Sample data from NETC will be used for testing. Integration is expected to be completed by mid February, 2020. Agenda 13(ii): New GST Return 107 GIN CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK State/UT-wise upload : Overall Stat up to 15.12.2019 GIN Form Unique Unique Total Taxpayers Taxpayers of State of Centre unique GSTINS % of State % of Centre Normal Taxpayers Total uploads: Normal taxpayers Unique GSTINS ANX-1 60.726 28,544 89,270 ANX-2 9.061 3.836 68.03% 12,897 70.26% 31.97% 1.03.13,480 0.87% 29.74% 1,03,13,480 0.13% Total 69.787 32,380 1,02,167 68.31% 31.69% 1,03.13.480 0.99% Form Unique Unique Total uploads uploads uploads (State/UT) (Centre) % of State % of Centre Unique ANX-1 uploads (Total) ANX-2 12,652 5.641 ....
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.... State /UT Name State assigned to Assigned assigned Assigned to State to State to Centre Total Tried Centre Tried Total Taxpayers (Normal) % of total who tried Jharkhand (20) 771 25 433 26 1,255 63.43% 36.57% 1.45.991 0.86% Andlira Pradesh (37) 1.298 128 665 57 2,148 66.39% 33.61% 2.85.727 0.75% Rajasthan (8) 1.533 240' 1.162 154 3,089 53.40% 42.60% 5.40.590 0.57% Kerala (32) Andaman and Nicobar Islands (35) 880 130 573 63 1,646 61.36% 38.64% 3.01.671 0.55% 9 11 20 45.00% 55.00% 3.921 0.51% West Bengal (19) 1.617 140 994 94 2,845 61.76% 38.24% 6.10.188 0.47% Maharashtra (27) 2.561 181 1.732 127 4,601 Tamil Nadu (33) 1-457 187 1.164 115 2,923 59.60% 56.24% Sikkim (11) 14 9 23 60.87% 40.40% 43.76% 39.13% 13.66.536 0.34% 8.74.255 7,406 0.33% 0.31% Chandigarh (4) 38 29 4 71 53.52% 46.48% 26.946 0.26% Arunachal Pradesh (12) 14 5 11 - 30 63.33% 36.67% 12,430 0.24% Gujarat (24) 965 85 893 731 2,016 52.0854 47.925 8.73.885 0.2396 Panjab (3) Haryana (6) Delli (7) 415 28 148 18 599 73.29f 27.71% 3.08.426 0.19% 382 38 234 22 1672 62.04% 37.96% 4.2....
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....ases where SCN has been issued which have not been replied (RFD-08) 1892 409.84 5.40% 3.94% 12 Out of 4 above, cases where SCN has been replied and case under process (RFD-09) 615 259.65 1.76% 2.50% 13 Out of 4 above, cases withheld (RFD-7B) 14 Number of Payment Orders Issued in RFD-05 5 16,515 0.42 5,944.02 0.01% 0.00% Online Refunds: Status of RFD-05 (As on 16th Dec.) GIN STATUS COUNT 1 Total RFD-05 issued since 26/09/2019 (in RFD-01) 2 Out of 1 above, sent to PFMS 16,515 AMOUNT (IN CR.) 5,944.02 EXPLANATION 16,072 5,844.57 97.32% 98.33% Percentage Percentage of of 16072 5844.57 3 Out of (2) above, Accepted by PFMS 7699 2,615.37 47.90% 44.75% 4 Out of (2) above, Rejected by PFMS 61 30.64 0.38% 0.52% 5 Out of (2) above, Disbursed by PFMS 5912 2,503.12 36.78% 42.83% 6 Out of (2) above, balance in under process with PMFS 2400 695.43 14.93% 11.90% 7 Balance Yet to be sent to PFMS (out of 1) 443 99.45 2.68% 1.67% *:14/(1-2-3) 111 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Online Refunds: Age analysis (as on 9th Dec. 2019) GIN CENTER STATE STATUS 60 60 days days days days days days days days ....
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.... Dec 2019 9 Expected roll out date Infosys has completed Proof of concept (POC) and has also completed the Prototypes. 1" Feb 2020 113 GIN recas GIN CHAIRMAN'S INITIALS N CHAIRMAN'S INITIALS MINUTE BOOK 2239 GIN Agenda 13(iv): Reporting of electronic Invoice to GST System Positioning e-Invoice? Is e-invoice taken into buyer's billing/accounting system directly? NO GIN • If not, how is the data entered? Manually (even if received electronically) • Transcription errors • Wrong entries • Need for standards to ensure complete inter-operability Elimination of need of manual data entry and transcription errors 114 18 JAYNA BOOK DEPOT MINUTE BOOK Fatd. 1949 JB JAYNA Economies in the OECD high-income group are at the forefront of invoice digitization Number of economies offering e-invoices CC 39 SIN 33 High income CECO Europe & Central Asia Source: Doing Business database 9 East Asia & Pacific 图 Yes No 8 17 10 3 Latin America South Asia Middle East & Caribbean & North Africa Sub-Saharan Africa Advantages of e-Invoice Better relationship Generation of invoice and its reporting will become part of ....
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....iew: Buyer receives registered invoice from IRP • Use QR code to verify the invoice Buyer can view the ITC related to this invoice in his ANX 2 Solutions already demonstrated: 1. Thru a GSP. Large Taxpayer CSV GSP E-inv Signid wing Signed em As you generate GSP will convert you invoice today the payload as per e-Inv schema and upload IRP 2. ERP vendor to make changes in the software to enable taxpayers to generate e-invoice payload as per approved schema. 3. Mobile Apps for e-invoice generation by micro/small taxpayers. 4 out 8 companies which are providing free accounting software have demonstrated it. 117 GIN GIN CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK E-invoice-Stakeholder/IT Companies Interactions SIN 1. Session with major ASP/GSP & Accounting Software companies - conducted on 04.12.2019 2. Sessions planned across India: # City Industry Body Partner Tentative Dates 06th Dec 2019 1. Delhi NASSCOM. ASSOCHAM, CII, PHDCI, FICCI 3 to 5 pm 11th Dec 2019 2. Chennai CHI 3. Hyderabad FICCI 4. Jaipur PHDCCI 5. Bangalore ASSOCHAM 6. Pune CII 7. Mumbai CII 3 to 5 pm 12th Dec 2019 17th Dec 2019 3 to 5 p....