TaxTMI 
TaxTMI 
Minutes of the 39th GST Council Meeting held on 14th March, 2020
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....fficers on Revenue Augmentation) i. Fitment Agenda for Goods: Inverted Rate Structure m GST-Correction of inverted rates on certain key sectors ii. Fitment Agenda for Services 5. Issues recommended by the Law Committee for the consideration of the GST Council A. Issues recommended by the Law Committee for the consideration of the GST Council i. Taxability of 'economic surplus' earned by brand owners of alcoholic liquor for human consumption ii. Challenges faced in apportionment of ITC in cases of business reorganization under section 18 (3) of CGST Act read with rule 41(1) of CGST Rules iii. Issue regarding waiver of penalty and interest on previous period due to removal of pre-import condition under Advance Authorization scheme iv. Levy of interest under the provisions of section 50 of the CGST Act, 2017 for delay in payment of tax v. Proposal for waiver of filing of FORM GSTR-1 by taxpayers who have availed the special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019. vi. Filing of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) ....
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....KYC of persons willing to take registration within first six months and corresponding spike rule iv. Proposed amendments in the CGST Act, 2017 v. Proposal to issue notification and circular clarifying issues related to corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 vi. Proposal to issue Removal of difficulty order for extending the time limit for revocation of cancellation of registration vii. Status update on conversion of Goods And Services Tax Network (GSTN) into 100% Government owned Company viii. Judgment of Hon'ble Supreme Court of India in Chief Commissioner of Central Excise and Service Tax & Ors. Vs. M/s Ranchi Club Ltd. and State of West Bengal vs. Calcutta Club Limited laying down that from 2005 onwards, Finance Act, 1994 does not purport to levy service tax on member clubs in incorporated form ix. Order of Hon'ble High Court of Rajasthan in the matter of Rajasthan Tax Consultants Association vs UoI and Ors. (D. B. Civil Writ No. 15239/2017) x. Agenda Note for refund of ITC of the tax paid on capital goods, in cash, for registered taxpayers with annual aggregate tur....
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.... intervened and stated that he was heading a Group of Ministers on the implementation of IT (hereinafter referred to as IT-GoM), therefore he wanted to inform the Council about the status, being relevant to the agenda and as came to his notice during the IT -GoM meetings and that he would like to raise a few issues in the next two minutes for the information of the Council as well as Shri Nandan Nilekani. He would expect Shri Nandan Nilekani to update the Council on those issues as well. He further stated that IT -GoM had been formed to oversee and resolve the IT challenges faced in the implementation of the GST. The IT-GoM, since then had held 13 meetings from time to time and 47 functionalities were required to be implemented in the beginning. Out of these, IT -GoM had prioritized the functionalities to be implemented out of turn for which Infosys took more than one year to develop and implement. The issues faced during the peak days of filing of GSTR-3B such as slowness of the Portal, system and application errors preventing smooth filing, system hitting the circuit breaker so as to limit the people filing the return at the same time etc. were identified and informed to Infosys ....
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....stem, GSTR3B return was to be filed by 20th of the month. About 65% of the people filed return by the due date and out of this 35% of the total tax payers came to file the return on last three days while the return filing percentage further increased to about 90% by the end of the month. In the month of January, 19^th January was a Sunday due to which there was very low return filing and bulk of the people came for return filing on 20^th January, 2020. In addition, there was additional rush for filing GSTR-1 due to the expiry of amnesty scheme timeline on the 17^th January 2020. Further, the time for filing GSTR-9 and GSTR-9C for 2017 -18 was also coming to an end. As a result, the system which was designed to handle 1.25 lakh concurrent users, hit the circuit breaker as more than 1.5 lakh people had hit the server for return filing. Load on the server, more than the design, led to further slowness of the system which was compounded by an issue in delivery of OTP by mail. This led to further load on the server as people tried again and again to get the OTP leading to failure of the system. 4.3. In short term, these issues were handled by staggering the last date of filing for di....
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....T compliance model implemented, was based on two returns model where the supplier declared his outward supplies at invoice/ tax rate level including the exports and deemed export suppliers by the loth of the month in GSTR-1 return. Further, a GSTR-3B return had to be filed where he had to compute & re-enter the output GST liability and also compute & enter the Input Tax Credit (hereinafter referred to as ITC) claimed and thereafter arrive at net tax liability which had to be offset through a challan. The issue in this system was that taxpayer not only had to do duplicate efforts in computing for the returns, taxpayer had to manually claim the ITC also. These issues were compounded by the challenge in the number of filings of various types of returns. Further, while approximately one crore tax payers file GSTR-3B return in a month, only about 60% filed the corresponding GSTR-1 return. Out of one crore taxpayers i.e. those who were required to file GSTR-1 return, 22% of the people filed 'Nil' tax liability returns, 12% of tax payers only had B2C supplies and hence, were not passing on the ITC, and hence invoice details/ detailed GSTR-1 in these cases were also not required. T....
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.... the load on taxpayers would go up with ANXI, ANX-II and RET. c. Hardware also had not been upgraded. 4.9. Accordingly, incremental approach towards the rollout of the returns system was suggested rather than implementing 'New Return system' in big bang fashion which might be counter-productive and hence, as an implementer of large systems (not as the Infosys representative), he would suggest to adopt incremental improvement approach to reach the same goal with present returns instead of large-scale disruption. He, thereafter, explained the details of incremental roll-out with the idea to get to the same end result and at the same time reduced, risk in adoption by the public. He, further, stated that as of today the first need was to match the liabilities declared by suppliers between GSTR-1 and GSTR-3B and the second need was to match the ITC of the buyers from the suppliers' GSTR-1 containing his supplies i.e. matching the 2A of the buyer with his ITC declared in 3B. He suggested the following roadmap:- a. Therefore, in the first stage the tax liability would be generated from invoice wise details filed by him in GSTR-1 where initially he could be....
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....ability and over declaration of ITC on the compliance front would get covered. f. The spin-off of this incremental approach would be that it would allow the data as enabler for lending and in view of 75 lakh MSMEs below Rs. 50 crore turnover getting the benefit of easy lending. As one MSME employer created on an average one job, approximately 75 lakh jobs would be added to the economy. 4.10. He explained the benefits of the incremental approach as follows: a. Nearly 34% of the tax payers would not have to file detailed GSTR -1 as either they were 'Nil' filers or they had no B2B supplies. b. For tax administration the ITC would be reconciled automatically. c. For tax payers GSTR-3B would be fully auto drafted. d. It could also provide flexibility as in the current system the option to file quarterly return could only be exercised once in an year whereas the flexibility to opt for quarterly or monthly anytime was requirement of the day from the point of view of the tax payer. Further, from the tax administration point of view, as explained earlier, 34% tax payers do not need GSTR-1 to be filed while 40% of the tax payers filed m....
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....ut and it needed to be minimized. He thereafter, submitted that Infosys in discussion with GSTN had provided 'T&M Model' for the 60 resources which had been placed before the Council as Table Agenda 11(xi). Further, the timelines indicated in the presentation upto January, 2021 and that the time line for spike rule implementation had not been given in the presentation do not seem to be agreeable. Moreover, when 60 persons were being agreed to and provided, the time line should come down. The twin issues of smooth experiences of tax payers and spike rule to cover fake invoices I fake ITCs and tax evasion should be addressed with agility as these loopholes were costing tax administration thousands of crores of rupees. Thus, these timelines needed to be advanced with appropriate resources and support of Government I Council. Another issue that he pointed out was relating to implementation of Aadhar and its linking with the GST registration and refunds, which also needed to be implemented on priority. 4.15. Shri Mauvin Godinho, Hon'ble Minister for Transport and Panchayat Raj from Goa, stated that the presentation by Shri Nandan Nilekani was good and informative and that....
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.... well as misuse of ITC would be stopped. Further, if implementation of ANX-l and ANX-II, was done, it would be releasing new forms for the public, which would be bigger challenge for the public to understand and adapt to these new forms and hence, he referred to it as a big bang reform approach. He instead, suggested to have an incremental approach to plug the loopholes using GSTR-l and GSTR-3B, since taxpayers were already familiar with GSTR-l and GSTR-3B; with final goal to improve the compliance. As regards the point raised by Hon'ble Minister from Kerala, he stated that suggestion to link payment to credit was radical and excellent because in that case there would be no fake invoices left in the system and since, the system based tax payment would be the basis of allowing lTC, and no 'spike rule' would therefore be required. However, it was a big step which needed proper consultation and he would come back with specific recommendation. Responding to the issues raised by the Secretary, he stated that implementation of the changes suggested by him required time as it was not merely a systems change, but required a lot of change in the behavior of the public for the re....
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....e had observed that the performance of Infosys was not upto the mark. He was thankful that Shri Nandan Nilekani had come to address the issues being faced at GSTN. He further stated that GST system implementation was a prestigious project which needed will of Infosys to implement and what the project needed was quality people to implement it. Instead he had seen complacent people sitting in the IT -GoM meetings, Shri Nandan Nilekani stated that he would ensure quality people across Infosys for the project as well as would ensure that he would personally attend the IT -GoM Meetings. 4.22. Shri V. Narayansamy, the Chief Minister of Puducherry, stated that while the Council was focusing on the implementation of GST and the need to simplify the compliance; the unscrupulous taxpayers were making fake invoices and taking fake ITC to cover up their tax liability. Therefore, whenever the Council made changes to cover tax evasion, the genuine taxpayers suffered each time. He stated that the presentation of Nandan Nilekani had at least given the idea that GST implementation would be better in future. However, it should be kept in mind that every time the Council simplified certain things ....
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....on data. Further, incremental approach to implementation of linking of return had been discussed with Department of Revenue, GSTN and the Government was agreeable to it. Hon'ble Minister form Chhattisgarh wished to know if, the system could link with sales with purchases also to which Shri Nandan Nilekani responded that the system could link ITC with sales and tax paid by suppliers. 4.26. Hon'ble Union Finance Minister Ms. Nirmala Sitharaman, stated that there were 4- 5 suggestions which had croppedup during discussions and she would like to summarize them as below for further discussion: a. IT -GoM need to be empowered enough to take decisions b. It was not the case that the taxpayers faced the problem in return filing during the months of January / February'20 only. Instead there were other months also where the capacity of the system had affected the GST implementation. c. There should be synergy between Infosys and its vendors such as Tech Mahindra and the issues should get resolved at their level rather than reaching the doors of PM / FM/ MoS/ Ministers in the State for them to respond to these situations. d. GST Council to ta....
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....es: i. In paragraph 8.13 of the Minutes to add after the last line (The Hon'ble Deputy Chief Minister of Gujarat stated that as most of the States had less liquidity, whatever compensation Cess was collected, should be distributed among the States.) 'The Hon'ble Council Member from Tamil Nadu in his written speech (circulated during the Meeting) suggested that the compensation to the States may be continued even after the mandatory five-year period, although the rate at which such compensation is to be provided and other modalities could be worked out by this august Council, in the time to come.' ii. In paragraph 12.1 of the Minutes to add after the last line (The Secretary stated that these issues could be discussed in the Fitment Committee.)'The Hon'ble Council Member from Tamil Nadu in his written speech also urged the august Council to consider the remaining representations forwarded to the Council on the ground of rationalisation of tax, items of essential use by common man, items for the benefit of farmers and fishermen, items made by small artisans, items relating to religious sentiments, early.' iii. In paragraph 14 of ....
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.... State of Goa till it was decided whether GST was required to be levied on the full amount or on the gross gaming revenue as has always been done in the pre GST era. This was for the reason that casinos in Goa were on the verge of closure. That they were a very important source of revenue for the State and that Law and Fitment Committees had decided the issue and that the issue could be brought directly to the GST Council. 7. For Agenda item 1, the Council approved the Minutes with the following changes i. In paragraph 8.13 of the Minutes to add after the last line (The Hon'ble Deputy Chief Minister of Gujarat stated that as most of the States had less liquidity, whatever compensation Cess was collected, should be distributed among the States.) 'The Hon'ble Council Member from Tamil Nadu in his written speech (circulated during the Meeting) suggested that the compensation to the States may be continued even after the mandatory five-year period, although the rate at which such compensation is to be provided and other modalities could be worked out by this august Council, in the time to come.' ii. In paragraph 12.1 of the Minutes to add after the ....
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....es and that they were ready to bear the cost of creating Tamil Helpdesk in GSTN." Agenda Item 3: Review of Revenue Position 8. The Secretary invited Shri Ritvik Pandey, Joint Secretary (Revenue) to brief the Council on the subject. 8.1. Joint Secretary (Revenue) initiated the discussion with a presentation on this Agenda item. The presentation is attached as Annexure 4. He started the discussion by showing the revenue collections under CGST, SGST, IGST and compensation cess during the three months of December 2019, January 2020 and February 2020. He stated that in the last three months the collections have been robust. He stated that the collections since November 2019 have been more than in the previous two financial years. He stated that the growth rate trend of gross GST revenues in the current Financial Year opened with a good growth rate of 10% which slowly came down to 5% in June, 6% in July, 5% in August and went into the negative in the months of September and October. The growth rate picked up in November and has been hovering around 8-9% ever since. While the compensation requirements have increased from Rs. 41,146 crore in 2017-18 to Rs. 69,275 crore in 2018- 19....
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.... doubtful whether full compensation requirement would be released in the 3^rd year of GST with respect to the States entitlement. He stated that there are two issues regarding compensation (a) what was the State's entitlement (b) what was the amount available for disbursement and in case there was a shortfall, how to collectively overcome the shortfall. The State of Punjab has a pending amount of about Rs. 2000 crore. The Hon'ble Member from Punjab further stated that the time has become ripe to activate the dispute resolution mechanism envisaged in the Constitution under Article 279 A and requested that this Agenda may be brought in the next meeting of the Council. This had been suggested during the meeting of the GST Council in Goa on 20^th of September, 2019. He further stated that Punjab had earlier submitted that IGST amount of about Rs. 60,000 crore as on 31^st March, 2018 was appropriated by GOI and for which purpose the Hon'ble Chairperson had constituted a GoM and one meeting of the said GoM had already taken place. If this amount was apportioned among the States then the compensation requirement of the current financial year of about Rs. 48,000 crore could be ....
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....5%. However, the national average for the same went up by 9% in the aforesaid period. In view of the increasing revenue gap and limited resources of the State, the amount due to the State as compensation was requested to be released at the earliest possible date so that the budgetary provisions kept on account of the anticipated receipts for the year are fulfilled. Compensation due for the month of October-November 2019 comes to Rs. 668.73 crores out of which only Rs. 379.38 crores have been received by the State so far. Thus Rs. 289.35 crore remains balances for the said month and Rs. 579.46 crores have also become due for December 2019-January 2020 to the State. It was therefore, once again requested that the total compensation amount of Rs. 868.81 crores may kindly be released during the current month itself. The Hon'ble Member from Uttar Pradesh stated that regarding this agenda, he wanted to draw attention to the following issues: In the year 2019-20, the ad-hoc IGST settlement amount received was Rs. 1125 crore against which Rs. 1715.22 crore was recovered. He submitted that Rs. 589.62 crore was recovered in excess. This amount may be granted to the State. Along with this....
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....ments of the States. The IGST for the earlier years went to the Consolidated Fund of India. That should be corrected by going for a supplementary demand in the current financial year itself. If there has to be rethinking on compensation issue, it could be discussed, deliberated and a decision may be arrived by consensus. He finally requested the Chairperson to allocate one day for discussion with the State Finance Ministers on measures to augment GST revenues. The Hon'ble Deputy Chief Minister of Delhi stated that in the pre-GST regime both power and accountability were with the States. That 14% compensation cess requirement is based on pre-GST revenues of all the States. He said that there are shortcomings in the GST which should be removed. He further stated that for the country as a whole the revenue gap was about 25% vis-a-vis protected revenue. The solution to the cess deficit has to be found in this year's budget. As a result of the novel Corona virus the economy has headed to a slowdown which will further reduce GST earnings. Some of these sectors where shortfalls had fallen tremendously are restaurants, cinema theatres, shopping malls, etc. He wondered whether we co....
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....shown as 90,440 crore while the amounts shown as collected in Table 3 was 79,000 crore. To this JS, DoR replied that the gross collections during April-February was 9,0440 crore; however, after accounting for refunds etc. the net : amount in the compensation cess kitty from the current year's collections till January 2020 was only Rs. 79,000 crore. Therefore, only 79,000 crore was available for disbursement apart from the carryover from the earlier years. The Hon'ble Deputy Chief Minister of Bihar further stated that regarding the compensation cess, already Rs. 5774 crore balance is present. This is till January 2020. After one more month of February, another Rs. 9000 crore will be present. He felt that hardly Rs. 2000 to 3000 crore will be refunds. So, they can get about Rs. 8000-9000 crore and regarding this Rs. 5774 crore balance, he thought that after the end of Feb, in the month of March, we can have more than Rs. 25,000 crore in cess. He requested that this fund should be transferred in this month only and if a supplementary grant in this regard is required, we should go for it because the States require money in this financial year. All the amounts in the cess fund s....
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....tated that a GoM was constituted to look into it which had met once, JS, DoR had been specifically tasked to look into it. She agreed that there they have gone through the entire case and agree that there was a case for making good the loss suffered at that time due to wrong location of a certain amount which should have been accounted in one financial year but has been accounted in the year before that. This issue has been lingering since then. As was promised in the 37^th GST Council Meeting at Goa, a GoM has looked into the issue and this error shall be corrected. The Business Rules require the CAG to certify that the amount was : indeed wrongly accounted. Once this certification is obtained, then depending on revenue position, in one chunk or more, the amount shall be disbursed. Coming to the issue of compensation, she replied that she had made several suggestions regarding compensation cess and that the States are entitled to it and there is no question of them asking the Centre for it. It was the solemn commitment to the States. The Centre is duty bound to give compensation to the States. She agreed with the statement made by Hon'ble Chief Minister of Puducherry that at o....
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....as given way to a daily collection of about Rs. 750 crore. While the domestic GST collections have increased by 9%, the GST collections on imports have fallen. Total gross GST Collection growth is around 4-5%. Therefore, a revenue augmentation committee has been constituted which held series of discussions with State Officers. Revenue Augmentation need not necessarily be only through increase in rates. It can be done smartly in a structured manner. Finally, he submitted that the return filing by the Central tax payers is constantly monitored by CBIC Chairman on a weekly basis. The Hon'ble Deputy Chief Minister of Gujarat requested that there is need for amendment in the Central Sales Tax Act, 1956. Letter containing detailed note for amendment in the relevant section of the CST Act is already sent to the Govt. of India. Wrong use of C-Forms is causing loss of CST revenue to many states. Other states have also agreed to prevent wrong use of C-FORM and therefore, the Central Government should bring amendment immediately. If need be, the matter may be discussed in the Council meeting. It was replied by the Secretary to the Council that feedback had been taken from the States. Some....
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....weight cost • Gives rise to fraudulent practices - fake invoices, misclassification • Claiming refund entails efforts, cost and hardship Instances of inverted rate structure highlighted by him included fertilizers, mobiles, footwear, manmade yam & fabrics, renewable energy devices, tractors, pharma, etc. The Committee of Officers on Revenue Augmentation recommended to calibrate rates so as to correct duty inversion. This issue was highlighted in the presentation made in the 38^th GST Council meeting held on 18^th December, 2019 at New Delhi. This issue was again examined by the Committee of Officers and deliberated in detail in Fitment Committee. On ABC analysis Fitment Committee as first step recommended rate calibration on four items/sectors i.e. mobile, footwear, textiles and fertilizers. He further stated that these four sectors contribute significantly to the total consumption base of goods. He went on to explain how the inversion arise in case of mobile phones vis-a-vis its parts/intermediate goods. It was stated that about Rs. 5500 crore of ITC refund has been claimed on account of inverted tax structure in respect of mobiles. As no refund ....
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....-GST regime textiles suffered significant embedded taxes as no refund was admissible in excise. He also explained as to how the GST rates were evolved in textile sector. Initially Manmade yarns and fibres were placed in the 18% slab and fabric attracted GST at the rate of 5% with the condition of not allowing refund of accumulated ITC. Subsequently the GST rate on MM yarn was reduced to 12% and refund of accumulated ITC was allowed in Fabric. GST rate on all job work services was brought down to 5%. However, this brought in an inversion in dyeing service. Further, inversion continued in textiles as the value addition at yarn stage and fabric stage is not sufficient to correct inversion on these items. Further capital goods and services (other than job work and transport) attract standard rate of 18%. This inverted structure has been acting as detriment to the growth of textile sector and investment in the sector. He stated that the Ministry of Textiles had also recommended for correcting inverted rate structure so as to unshackle it from the burden of taxes (accumulated ITC etc.). This would increase the employment opportunities in the Textile industry and also make our exports com....
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....y was happy with this proposal. The textile industry is in the process of settling down with the existing rate structure and at this juncture it may not appropriate to hike taxes. Likewise, the proposed hike of GST on fertilizers would adversely impact the farmers. However, the recommendation in respect of mobile and footwear may be considered if other Hon'ble Members so desire. 10.7. The Hon'ble Member from Kerala stated that the logic in the presentation was very good which is to eliminate inversion. However he pointed that the, additional cost in terms of refund being no longer available due to correction of inversion would be borne by the consumer and will have an inflationary impact. Council will have to consider the appropriate moment for raising GST. There is a near recession in the economy and a huge contraction in demand. The supply chain has broken on account of COVID-19. The Central Government may not be comfortable with stimulus package because they have an eye on inflation. We should be wary of any increase in commodity taxes at this point of time. Council could wait for a month or two and consider these corrections in the next GST Council meeting. 10.8. ....
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....ding to misuse and evasion. He pointed out that the Fitment Committee had already deliberated on issue and recommended uniform rate of 12%, he urged the council to take a decision on the same and not keep it pending. He further stated that in their State, they have been receiving numerous representations from the trade associations dealing with food grains complaining that the tax authorities are demanding tax for delayed filing of disclaimer affidavit before the jurisdictional Commissioner, voluntarily foregoing the actionable claim or the enforceable rights on their brand name. The intention of issuing such notification for filing disclaimer affidavit is to grant exemption on the supply of food grains having unregistered brand name. However, the delay in filing such affidavit should not be a ground for levy and collection of tax on the supply of food grains. He urged the Hon'ble Chairperson to kindly issue guidelines to condone the delay in filing the disclaimer affidavit and not to raise demands on that ground. He also suggested that the distinction between branded and unbranded food grains should be completely done away with as most taxpayers have switched to unbranded cate....
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....on requirements of the States. Some of the hon'ble members had recommended for market borrowings. He was of the view that the average monthly GST collection has to be about Rs. 1.3 lakh crore in 2020-21 if the compensation requirement of the States are to be met. The Compensation Cess Act is very clear that compensation has to come from Compensation Cess Act. That all of us as Finance Ministers are used to taking hard decisions and the time has now come to take more such hard decisions. He had no specific comment to make in respect of textiles and fertilizers. Today, there is Corona virus and therefore perhaps we may postpone the decision. The hon'ble Member made it very clear that Assam is dependent on devolution of central taxes. Devolution is equivalent to compensation implying thereby that if the general revenue increases then the amount devolved to Assam would increase. He said that he had no specific comments to make except that distortions in the GST rate structure had to be corrected. Otherwise how would the Union Finance Minister compensate us at the rate of 14% year on year increase over protected revenue. 10.15 The Hon'ble Member from Goa stated that corre....
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.... upcoming meetings. 10.20 The Hon'ble Member from Andhra Pradesh also stated that this was not appropriate time to increase GST. The Commissioner, Commercial Taxes of Maharashtra stated that his government supports the recommendations of Fitment Committee but does not support raising GST on garments and fabric 10.21 The Chief Economic Adviser stated that the objective of the proposal is revenue augmentation. However, instead of static modelling it should be done in a dynamic fashion meaning thereby that increase in taxes reduces the marginal propensity to consume (i.e. acts as a dampener to consumption). Further, exports of mobiles and textiles could be adversely impacted by increasing GST on parts and components on the same and therefore should be handled very carefully. The Secretary to the Council stated that this proposal was not for revenue augmentation but noted emphatically that, as highlighted by the Fitment Committee, to correct the distortion in GST tax regime that has been created by inverted tax structure and such correction would make our domestic manufacturing internationally competitive which would add to our GDP, provide employment and also increase export....
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....ationalise rates to 12% on all kind of matches. The Council also directed that this change to be affected effect from 1^st of April 2020. 11. When the GST Council reassembled after lunch, the Secretary to the Council stated that this Agenda item had two parts and the second part, Agenda item 4(ii) related to the fitment agenda for services. He then asked Sh. Manish Sinha, JS (TRU-II) to apprise the Council about the recommendations made by the Fitment Committee with respect to GST on services. In his presentation (annexed as Annexure 6) JS, TRU-1I stated that there were four issues for consideration by the Council. One of the issues at S.No.3 of the Agenda item 4(ii) pertained to levy of IGST on ocean freight payable by importer under reverse charge mechanism. He stated that this issue is under examination and a detailed write-up had been enclosed to detailed agenda note (Annexure III). However, it was proposed to defer the same. The first Agenda was the direction given by the Hon'ble Supreme Court vide their order dt. 11.12.2019 to allow the representations of Haj/Umrah Private Tour Operators (PTOs) to withdraw their petitions and directed the government to decide on the sa....
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....ies under which this can be taxed, " manufacturing services on physical inputs (goods) owned by others at 18% and "services by way of job work in relation to all food and food products falling under chapter 1-22 in the Customs Tariff Act" at 5%. The proposal was to levy GST on the service of job work in relation to manufacture of alcoholic liquor for human consumption at the rate of 18% and bring an end to this classification dispute by inserting in the entry related to food and food products job work that it excludes alcohol and alcoholic beverages. He further stated that the rate of tax on contract manufacturing in GST was 18%. While proposing to levy GST at the rate of 5% on job work services in relation to food and food products, the Council never explicitly provided for 5% rate for job work on liquor. Furthermore, the default rate of GST on services was 18%. Further, overall, two-thirds of the units were paying GST at the rate of 18% and the rest were paying at the rate of 5%. He explained that in the Fitment Committee most of the members had agreed to the proposal. However, Tamil Nadu and Maharashtra expressed a different opinion. 11.3. The Financial Adviser to the Hon'....
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....du and Maharashtra in the Fitment Committee. At present, "the job work services in relation to manufacture of all food and food products" is taxable at 5%. Alcoholic beverages fall well within the definition of 'food' under section 30) of the Food Safety and Standards Act, 2006 and therefore, job work services for manufacture of alcoholic liquor for human consumption is taxable at 5%. The proposed increase in tax rate will result in demands by manufacturers for increasing the MRP of alcohol or reducing the State Tax on alcohol. Further, increasing the tax rates will also further limit the manoeuvrability of the States to change State Taxes. 11.6. The Hon'ble Member from Odisha stated that the GST on job work for alcoholic liquor is not a tax on liquor but is a tax on service. He agreed with the recommendations of the Fitment Committee that liquor is not food. He said there are two systems of manufacturing liquor through bottling plant, first being by issue of license to a third party and the other where the brand owner himself does all operations of bottling. If the august house considers that liquor is food, then question of leviablity at 5% arises; else the matter ....
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....The Secretary took up the next Agenda on issues recommended by the Law Committee for consideration of the Council. He started by saying that all these issues were deliberated in great detail in the Officers' meeting held on 13^th March 2020. He thereafter, asked the Principal Commissioner, GST Policy Wing, CBIC (PC, GSTPW) to give a brief overview of the deliberations in the Officers' meeting regarding the recommendations made by the Law Committee on the subject. Initiating the discussion, PC, GSTPW made a detailed presentation (annexed as Annexure 7). He stated that the first Agenda item 5A(i) was discussed in great detail in the Officers' meeting on 13.03.2020 wherein some of the States were of the view that the proposed clarification seemed to negate the advance ruling given. It was, therefore, opined by them that jurisprudence should be allowed to evolve in the matter of differing advance rulings. While some of the States did not wish to get into the legality of the issues raised, some of the other States felt that it was a matter of contractual agreement between the bottling unit and the brand owner. The Hon'ble Financial Adviser to Punjab CM had also alluded t....
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.... had not been notified. He further informed that the Hon'ble High Court of Madras U had passed orders stating that this was a clarificatory amendment and thus stood inserted retrospectively; High Courts of Delhi and Gujarat have stayed recovery on gross liability. PC, GSTPW informed that the said amendment was not made retrospectively and thus would apply prospectively only after notification of date of its effect. He informed that if interest was to be charged @ 18% on the gross basis from July 2017 to September 2019, the liability would come to around Rs. 46,000 crore, and if the interest was to be charged only on cash basis, it would come to around Rs. 8,800 crore. He stated that the matter was discussed in great detail in the Officers' Committee and there was an agreement that interest should be recovered on net basis only under section 50 for delayed payment since 15^th July 2017 itself i.e. retrospectively. He stated that the Council needs to take a decision whether the said amendment should be implemented the way it has been carried out i.e. once the leftover States amended their laws, notify the provision prospectively or whether this amendment should be carried out....
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....ed that it would be implemented through a notification under section 148 of the CGST Act. 13.5. The next agenda item taken was Agenda No. 5A (vi). PC, GSTPW informed that this was discussed in detail in the Officers' Committee held on 13.03.2020. He stated that this proposal was with respect to filing of annual returns in FORM GSTR-9 and GSTR-9C (Reconciliation Statement) for Financial Year 2018-19. He stated that so far only 2017-18 Annual return (FORM GSTR-9) and reconciliation statement (FORM GSTR-9C) are closed. He mentioned that from GSTR-9 returns, Rs. 3,172 crore as additional tax and Rs. 575 Cr. interest thereon got collected while from GSTR-9C, only Rs. 391 crore additional tax and Rs. 81 Cr. interest got collected. PC, GSTPW stated that the GST Council in its 37^th Meeting held at Goa had made filing of GSTR-9 and GSTR-9C optional for the tax payers having aggregate turnover of less than 2 Crore. He stated that from such tax payers, appx. Rs. 580 crore tax along with interest got collected through GSTR-9 and that if this exemption was raised to a turnover of Rs. 5 crore, still 85% of money from GSTR-9 and 87% of money from GSTR-9C would have been recovered. However....
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....ave learnt how to work with the GST system, this move will render all the effort put in the past to nothing. The annual return is the only document to serve as a check point to check fraudulent ITC. Annual return is only the addition of individual GSTR-1s and reconciling with GSTR-3B. This did not reduce any terrible compliance burden but only undoing of all the effort put in till now. Hon'ble Member from Bihar stated that tax payers cannot file the annual returns and reconciliation statements without the help of Chartered Accountants. The turnover of Rs. 5 crore is not a big amount. To reduce the compliance burden and when the revenue implication is not huge, the benefit has to be given to the small and medium tax payers. The decision for the yeaRs. 2019-2020 can be made later but for the yeaRs. 2017-18 and 2018- 19, the relief to the tax payers should be given. The Hon'ble Member from Chhattisgarh enquired as to what was the merit of retaining GSTR 9 and increasing the threshold in respect of GSTR-9C. Keeping GSTR 9C at earlier limit might be desirable which was also the suggestion. PC, GSTPW replied that going forward, there was a proposal that GSTR 9 and GSTR 9C may be ....
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....-3B, it was important that GSTR-ls are regularly filed by the tax payers and that these amendments would encourage the GSTR-l filing. 13.8 With respect to the proposed amendment in sections 35 /44 of the CGST Act, he informed that the proposal is to remove the requirement of filing of reconciliation statement by Chartered Accountant or Cost Accountant. Further, the reconciliation statement would not be separately required and will be merged with the Annual return and the same may be mandated for a particular class of person only. 13.9 He further stated that there was no consensus with respect to amendments proposed in sections 109/110 relating to the constitution of GST Appellate Tribunals. He mentioned that the amendments have been proposed since the Madras High Court had quashed the existing provisions on the grounds of judicial imbalance. He explained that the Tribunal Bench with one judicial and two technical members was held against the principles laid down by Courts in relation to Tribunals. Simultaneously, Hon'ble Supreme Court has, in case of Kudrat Sandhu V s. Union of India, prescribed guidelines relating to selection, qualifications etc. of the Tribunal members....
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....tre) and two judicial members. There can also be a senior lawyer who can be designated as a judicial member. Tamil Nadu expressed strong reservations against the proposed amendments to sections 109 and 110 of the CGST Act with reference to the appointment of technical members in the GST Tribunals. These amendments seek to replace two technical members by one, leaving the option to choose a Central Technical member or State Technical Member to the Government of India. Tamil Nadu was of the view that the National Bench of the Appellate Tribunal and its Regional Benches may consist of Judicial Member and a Technical Member (Central) and in State Bench of the Appellate Tribunal and its Area Benches must consist of Judicial member and a Technical member (State). The Secretary stated that the background to this whole issue was that couple of months ago there was a Constitutional Bench of five judges which gave a judgment in the case of Kudrat Sandhu which set aside rules relating to various tribunals like CESTAT, ITAT. The Supreme Court gave guidelines based on which new rules were framed. Even Attorney General of India was consulted during the framing of these mentioned rules. JS, DoR e....
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....le Member from Delhi stated that at National and Regional level the technical member can be from Centre and at the State level, the technical member should be from State. JS, DoR stated that even at the State level, the bench constituted would be the State bench of the National Tribunal (GSTA T) and therefore the proposed system of rotation of technical members. The Secretary stated that there is only one National Appellate Authority with benches at various places like CAT which has only one President with benches in various States. Chief Commissioner, State tax, Gujarat mentioned that this was debated in the Officer's Meeting on 13.03.2020 and this debate is resulting in delaying the decision and cases are piling up. This issue had to be resolved. He stated that the Supreme Court judgement states two things (a) any member, especially judicial member cannot be appointed by the executive and judiciary has to be involved in the appointment process, (b) judicial members cannot be in minority in a bench. He suggested a formulation that since this is a National Tribunal; the Central branch at Delhi will decide only the Place of Supply issues and rest will be taken by State Benches i....
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.... on payment of IGST. He also stated that currently both the routes do not lead to same quantum of refund like refund of ITC on Capital goods was not allowed yet. He stated that the same will be discussed in Law Committee later so as to provide full zero rating to the exporters. PC, GSTPW informed that another proposed change in Section 16 of the IGST Act, 2017 was that zero rating of supplies made to a SEZ developer / unit be restricted only to such supplies which are meant for authorized operations only (and not all operations as it is today). He further explained that yet another change proposed in the same section was to make realisation of foreign exchange remittances in case of export of goods within the time period prescribed under Foreign Exchange Management Act (FEMA), 1999 a condition for benefit of refund i.e. the refund given on zero rated supplies will need to be returned back by the exporter if the remittances are not realised within the prescribed time limits. Principal Commissioner, GSTPW explained that this would address the issue of any fake exports or overvalued exports. 13.11. With respect to amendments proposed under section 151 and 152, Commissioner, Commerc....
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....veloping the utility and roll out for new tax payers can be done in April 2020 and accordingly, those rules were proposed to be notified. Hon'ble Member from Bihar enquired as to what was the difficulty in authentication the existing tax payer using Aadhaar. Since most of the tax payers were the existing tax payers and new tax payers had already become alert with regard to fraudulent activity, authenticating only the new tax payers may not be of much help. The Secretary replied that Infosys was told much earlier to authenticate both the categories but they replied that for new tax payers, the roll out can happen from April 2020 and longer timelines were given for existing tax payers. There is also another Table Agenda to seek in principle approval of the Council to give additional man power to GSTN. His proposal was that the timeline given by Infosys in the presentation earlier in the meeting regarding authentication of existing tax payers with Aadhaar, linking GSTR-l with GSTR-3B, GSTR-2A to GGSTR-3B, Spike Rules should be modified to make activities completed by end of July. For this purpose, if additional manpower and any other support is required, they should be provided wi....
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....imitation for filing an appeal in the Appellate Tribunal would begin from the date the said tribunal is constituted which was based on Removal of Difficulties Order dated 03.12.2019 issued by the Government on the recommendations of the Council. The PC, GSTPW then took up Agenda Item 5A(xiii) and stated that based on discussions in law committee, core group meetings and consultations with GSTN following was proposed with regard to the e -invoice scheme: a. Certain class of taxpayers like an insurance company or a banking company, a financial institution, non-banking financial institution, GTA, passenger transportation service providers as IRCTC referred in sub rule (2), (3), (4) and (4A) of rule 54 of CGST Rules, 2017 may be exempted from requirement of e-invoicing; b. Amendment of rule 48 to exclude credit note, debit note, export invoice, lSD, self-invoice under section 31 (3)(f) of CGST Act, 2017 in case of RCM supplies etc. for the purpose of obtaining Invoice Reference Number (IRN); c. Date of implementation of e-invoicing may be extended to 1^st October, 2020 for the taxpayers whose aggregate turnover in a financial year exceeded one hundred crore r....
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....9 by M/s. Hindustan Construction Company Ltd., were placed before the Council. The GST Council took note of the same. 14. For Agenda item 5A, the Council approved:- i. to defer the issue related to taxability of' economic surplus' earned by brand owners of alcoholic liquor for human consumption; ii. the circular clarifying challenges faced in apportionment of ITC in cases of business reorganization under section 18(3) of CGST Act read with rule 41(1) of CGST Rules; iii. not to exempt interest and penalty for the period from 13.10.2017 to 09.10.2019 for imports under advance authorization scheme; iv. to levy interest on net basis under provisions of section 50 of the CGST Act for delayed payment of tax (retrospectively w.e.f. 1^st July, 2017), and to carry out necessary amendments in law for the same; v. waiver of filing of FORM GSTR-1 by taxpayers who have availed the special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 and to give effect to such waiver by issue of notification under section 148 of the CGST Act; vi. to give relief to taxpayers having threshold of less than Rs. 5....
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....(2), (3), (4) and (4A) of rule 54 of CGST Rules, 2017 and OIDAR service providers from capturing dynamic QR code on their invoices; xv. extend due dates for filing FORM GSTR-1, GSTR-3B, and GSR-7 for the month of July 2019 to January 2020 in respect of the Union Territory of Ladakh to 24^th March, 2020; xvi. to continue the existing system of furnishing FORM GSTR-1 and FORM GSTR- 3B till the month of September, 2020; xvii. special procedure under GST for the merger of UTs of Dadra & Nagar Haveli and Daman & Diu, the transition for which would be completed by 31^st May, 2020; xviii. to extend the time limit to finalise the e-wallet scheme upto 31.03.2021 and to extend the existing exemptions from IGST and cess on the imports made under AA/EPCG/EOU schemes upto 31.03.2021 14.1. For Agenda item 5B, the Council took note of, the deliberations & agreed to the recommendations of the Law Committee, in the matter of representation by Construction Federation of India on the orders of the Hon'ble High Court of Delhi dated 31.5.2019 in writ petition No. 6536 of 2019 by M/s. Hindustan Construction Company Ltd. Agenda Item 6: Creation of the State a....
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....s of DGAP, Screening Committee and State Level Screening Committee for the 3^rd quarter (September, 2019 to December, 2019) of the financial year 2019-20 before the Council for information. 17.1. In terms of provisions of clause (iv) of Rule 127 of the CGST Rules 2017, National Anti- Profiteering Authority (NAA) was required to furnish a performance report to the GST Council by 10^th of the closing of each quarter. Anti-profiteering provisions are contained under Section 171 of the CGST Act, 2017 which empowered NAA to determine as to whether benefit of reduced rate of tax or the Input Tax Credit (ITC) had been passed on to the recipient by way of commensurate reduction in the prices and in case of failure, NAA might order reduction in prices, commensurate benefit to recipient, impose penalty and cancel registration, in suitable cases. 17.2. The performance report of National Anti-profiteering for the 3^rd quarter ending December, 2019 of Financial Year 2019-20 was as under: Performance of National Anti-Profiteering Authority: Op. Balance No. of Investigation Reports received from DGAP during the quarter Disposal of Cases (during Quarter) Closing Balance Tot....
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.... Further, due to the urgency involved, certain decisions were taken by GIC after obtaining approval amongst GIC Members by circulation. Thereafter, he made a presentation (attached as Annexure 8) on the decisions taken by Members of the GIC post 38^th GST Council Meeting. 22. For Agenda item 9, the Council took note of the decisions of the GST Implementation Committee between 19.12.2019 and 13.03.2020. Agenda Item 10: Decisions/recommendations of the 9^th and 10^th IT Grievance Redressal Committee for information of the Council 23. Introducing this Agenda item, the Secretary requested Shri Dheeraj Rastogi, JS, GST Council to apprise the Council of the issue. JS, GSTC stated that after the 38^th GST Council meeting two meetings of the ITGRC were held, the 9^th ITGRC on 2^nd December 2019 and the 10^th on 22^nd January 2020 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). The gist of the proceedings of the 9^th and 10^th ITGRC, as per Agenda Item was as follows: 9th IT GRC Meeting - 02^nd December 2019 23.1. Ninth meeting of the IT grievance Redressal Committee ....
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....utes in absence of any evidence of technical/system errors in these cases, as was decided in similar cases in past eight IT -GRC meetings. In respect of TRAN-2 cases: i. To allow 47 cases of TRAN-2 pertaining to Subcategories A1 and A3 of technical glitch as per Annexures indicated in column No. 3 and 4 of Table 4 of Minutes; for filing of TRAN 2 in accordance with the Law Committee recommendations regarding consequential benefits related to filing of TRAN- 2. ii. To allow GSTN to withdraw 02 cases of Subcategory A2 as mentioned in Table 4 of Minutes without any decision and directed GSTN to present the same in the next ITGRC Meeting. iii. Not to Allow remaining 113 cases of TRAN-2 pertaining to Category 'B' as per Annexures indicated in column No.3 and 4 ofTable-5 of Minutes in absence of any evidence of technical/system errors in these cases, as was decided in similar cases in past eight IT -GRC meetings. iv. To allow GSTN to withdraw 04 cases (which were approved earlier in 2nd ITGRC) so as to re-examine in detaiI and present in next ITGRC with detailed comments. In respect of TRAN-3 cases: i. Not to allow 18 cases of TR....
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....da Item). There were total 2 Agenda items placed before the 9^th ITGRC, as follows: a. In Agenda 1, Total 63 cases of TRAN-1 (18 Cases) /TRAN-2 (45 Cases) had been examined by GSTN and presented before the committee. Out of these, 50 cases were sent by Nodal officers and 13 were court cases. b. In Agenda 2, In pursuance of decision in 32^nd GST Council Meeting, regarding extended scope of ITGRC, GST Council Secretariat had received another 04 cases in response to extended scope of ITGRC and analysis of these cases was also presented before the committee. 23.3. After detailed discussion, the 10^th ITGRC decided and recommended as under: - Recommendation for Agenda 1; Pertaining to technical glitches in filing TRAN-1 & TRAN-2 cases. In respect of TRAN-1 (18 Cases); the ITGRC recommended i. To allow 08 cases of TRAN-1 pertaining to Subcategories AI, A2 and A4 of technical glitch as per Annexures indicated in column No.3 and 4 of Table 2 of Minutes for filing of TRAN 1/TRAN 2 in accordance with the Law Committee recommendations regarding consequential benefits related to filing of TRAN 1 and TRAN 2. ii. Not to allow remaini....
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....Secretary stated that there are 12 Table Agendas to be taken up for discussion and asked the Principal Commissioner, GST Policy Wing to initiate the discussion. 25.1 The Table Agenda 11(i) with respect to the Lottery scheme for B2C supplies was discussed in the Officers' meeting on 13.03.2020. At the outset, PC, GSTPW stated that the objective was to expand the tax base so as to include the last mile value addition in GST, which was considerable. The Hon'ble Deputy Chief Minister of Delhi felt that the scope of the scheme should be broadened and should not be restricted only to digital payments. He also felt that it should be made State-specific. He said that their scheme of "Bill Banao Inaam Pao" of the Delhi government in the VAT era was hugely successful. It was, therefore, decided to defer this proposal for further detailed examination. 25.2. PC, GSTPW explained that amendments in the existing refund circular 18.11.2019 under Table Agenda item 11(ii) had been agreed to in the Officers' meeting which included the following: i. No refund of accumulated ITC on account of reduction in GST Rate ii. Refund of unutilized ITC to be restricted to the ....
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....s High Courts have taken a view that in case of attachment of property pursuant to a search under section 67 of the Act, its present form section 83 empowers attachment only till the time search is completed and that such attachment cannot continue during the period of investigation. PC, GSTPW stated that it was proposed to amend Section 83 to provide for provisional attachment where proceedings under Chapter XII, Chapter XIV or Chapter XV had been initiated. He further explained that currently, this power was with the Commissioner but that several States had requested that since there is only one Commissioner, this power should be delegated to an officer authorized who is not below a certain rank. Hon'ble member from Bihar enquired about the change in the power of attachment in this amendment. PC, GSTPW replied that language correction in the provision had to be made since regarding the phrase "during the pendency of proceedings" in Section 83, the Courts had held that once the officer enters the premises, the search operation begins and the attachment can continue till the search operation is completed. This defeated the very purpose of attachment. The proposal was that attac....
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....ay, 2018 decided that GSTN will be converted into a 100% Government-owned entity by transferring 51 % equity shares held by the Non-Government institutions to the Centre and states equally. The Union Cabinet in its Meeting held on 26^th September, 2018 approved the proposal to convert GSTN into a fully-owned Government Company with 50% equity of the Company to be held by the Central Government and the balance 50% to be held by States and Union Territories. Further, the GST Council in its 31^st Meeting held on 22^nd December, 2018 and the Department of Revenue (DOR), Government of India vide its Letter No S-31011/5/2018-ST -1-DoR dated 17^th January, 2019 both had approved the revised shareholding pattern of GSTN as per (Annexure-1 to the Agenda). 25.7.1. Pursuant to Share Transfer Notices issued by the Empowered Committee & Non-Government Institutions, the respective Transferees (Centre and States) were required to acknowledge the receipt of the above Share Transfer Notice and communicate their acceptance through Purchase Notice to the respective Transferor(s) within 30 days from the receipt of Share Transfer Notice. Post acceptance of the offer to purchase the share, Centre, St....
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....ective amendment in view of pronouncement in this regard by the Hon'ble Supreme Court in a case involving levy of service tax on supplies of taxable services by the Clubs to its Members. PC, GSTPW informed that this had also been agreed to in the Officers' Committee meeting held on 13.03.2020. 25.9. The next Agenda item taken up was Table Agenda 11 (ix). PC GSTPW explained that the same was for complying with the directions of the order of Hon'ble High Court of Rajasthan in the matter of Rajasthan. Tax Consultants Association vs Vol and Ors. (D.B. Civil Writ No.15239/20 17). The matter was placed before the GST Council for deliberation and decision. The Council agreed that under GST law there was no provision for waiver of interest for delayed filing of returns. 25.10. PC, GSTPW took up the next Table Agenda item 11 (x) for refund of ITC of the tax paid on capital goods, in cash, for registered taxpayers with annual aggregate turnover upto Rs. 30 crores. He explained that this proposal has been brought up with a view to improve India's ranking in 'Paying Taxes' category of World Bank's 'Ease of Doing Business' index where in India has been ....
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.... auto-populated in FORM GSTR-3B for both monthly and quarterly taxpayers. It would be auto-populated for monthly taxpayers in the first phase and thereafter for quarterly filers. In the initial phase, such liability would be auto populated and would be kept editable. Further, gaps between liability of GSTR-1 (which was auto- populated in GSTR-3B) and liability furnished in FORM GSTR-3B would be communicated to tax administrations through MIS reports. The field would be configurable having facility for editing the auto-populated liability such that going forward in time, downward revision could be reduced in stages. b. In all cases, credit would be made available to the taxpayers only for those invoices which had been uploaded by their suppliers in their GSTR-1. As the first step for achieving this, date of filing for GSTR-1 would be made available in GSTR-2A immediately. c. As proposed by Mr. Nandan Nilekani in his presentation, credit in GSTR-2A shall be auto-populated in GSTR-3B. As GSTR-2A was a dynamic document which consisted of all the details of all the invoices (without a time limit), a new sub-statement (GSTR-2B) would be generated which would consist of ....
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....ments k. A separate functionality was required to be developed to give taxpayers opportunity to file a 'Nil' GSTR-1 at the time of filing of their GSTR-3B. Thus, they would be freed from the compliance of filing of GSTR 1. l. Nil filing of FORM GSTR-3B and FORM GSTR-1 would be through SMS. Initially, this facility would be available for GSTR-3B. m. 'Spike rule' and Aadhar validation, initially for the new taxpayers and then for the existing taxpayers, were essentially elements for plugging loophole in the system leading to loss of revenue and therefore were part of the transition strategy which might be implemented expeditiously. Implementation of 'spike rule' might need classification of registration in classes such as new and existing taxpayers and different spike rules for them might be prescribed for different class of taxpayers. 25.11.1 The GST Council thereafter discussed the details of the incremental approach and agreed to it in view of express benefits rather than adopting a big-bang shift to 'New Return system' as the trade was already used to the present system of filing of GSTR-3B and GSTR-1. The Council also....
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.... of Rajasthan in the matter of Rajasthan Tax Consultants Association vs UoI and Ors. (D.B. Civil Writ No. 15239/2017 x. Did not approve the proposal for refund of ITC of the tax paid on capital goods, in cash, for registered taxpayers with annual aggregate turnover upto Rs. 30 crores. xi. Approved the following: : a. To adopt and implement the incremental approach of linking the present system of filing of GSTR-3B and GSTR-1, as presented in the Agenda Item 2 and Table Agenda 11 (xi) rather than a big-bang shift to 'New Return system'. b. To support the timely implementation of various initiatives, the Council approved the proposed deployment of additional manpower (60 in number) on T & M basis and assured that both on procurement of additional hardware and hiring of manpower, expeditious approvals would be given however the return filing experience of the taxpayers and removal of technical glitches should be carried out urgently. c. To implement these initiatives by the 31^st of July, 2020. xii. Took note of ad hoc exemption order issued in respect of exemption from IGST for import and re-export of guns/ equipmen....
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....vt. of India 15 Govt of India 16 Govt of India 17 Govt of India 18 Govt of India 19 Govt of India 20 Govt. of India 21 Govt of India CHAIRMAN'S INITIALS Name of the Officer Dr. A B Pandey Dr Krishnamurthy Subramanian Shri M. Ajit Kumar Shri John Joseph Shri A. K. Pandey Shri Sandeep M Bhatnagar Dr Kavitha Gotru Shri Anil Kumar Jha Shri Ritvik Pandey Shri G.D. Lohani · Shri Manish Kumar Sinha Shri Suresh Kishnani Shri Yogendra Garg Shri Sanjay Mangal Shri Gaurav Singh Shri Rahil Gupta Shri Nikhil Goyal Shri S. Wasif Haider Shri Susanta Mishra Shri Pramod Kumar Shri Harish Y. N. Charge Revenue Secretary Chief Economic Advisor Chairman, CBIC Member, CBIC Member (GST), CBIC Member(Inv), CBIC CCA Additional Secretary, DoR Joint Secretary, DoR Joint Secretary, TRU I, DOR Joint Secretary, TRU II, DOR DG, GST Pr. Commissioner (GST), CBIC Commissioner (GST), CBIC Deputy Secretary (TRU) Under Secretary (TRU) Dy. Commissioner (TRU) OSD, TRU TO, TRU Director, TRU-II, DOR OSD, TRU-II 84 BOOK DEPOT Estd. 1949 JAYNA MINUTE BOOK 22 Govt. of India 23 Govt. of India Shri N Gandhi Kumar Shri Praveen Bali Shri Amaresh Kumar Shri Vi....
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.... GSTN 69 INFOSYS 70 INFOSYS Shri C. N. Raghupathi 71 INFOSYS Shri Nandan Nilenkani Shri Renga V. R. CEO EVP, Services EVP, Tech SVP (Services) VP, Services OSD to CEO Non Executive Chairman, Infosys Head, India Business, Infosys Member - Engagement Management, Independent Validation Services Solutions Unit 86 A BOOK DEPOT Estd. 1949 JAYNA MINUTE BOOK 72 INFOSYS 73 INFOSYS 74 Govt. of India 75 Govt of India 76 Govt of India 77 Govt of India 78 Govt. of India 79 Govt. of India 80 Govt. of India 81 Govt. of India 82 Govt of India 83 Govt. of India 84 Govt. of India 85 Govt of India 86 Govt. of India 87 Govt. of India 88 Andhra Pradesh 89 Andhra Pradesh 90 Andhra Pradesh Arunachal Pradesh Shri Venkatanarayan Shri Indrasis Dasgupta Shri Ashutosh Baranwal Shri Ajay Saxena Shri B. B. Mohapatra Shri Mahendra Ranga Shri Atul Gupta Shri V. K. Gahlout Shri Manas Ranjan Mohanty Shri Anuj Gogia Shri C. P. Goyal Shri M. R. R. Reddy Shri M Srihari Rao Shri V. M. Jain Dr. Vikash Shukla Shri Kush Mohan Nahar Dr D.Samba Siva Rao Shri Peeyush Kumar Shri K. Ravishankar VP Program Manager Principal Commissioner, Ludhiana Zone Pr. Com....
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....er, State Tax 120 Kerala Shri Mansur M. I. 121 Kerala 122 Kerala Shri Shaikh Hassan Ms. Sini K. Thomas Shri Raghwendra Kumar Singh ALO 123 Madhya Pradesh 124 Madhya Pradesh 125 Maharashtra 126 Maharashtra 127 Manipur 128 Manipur 129 Mizoram 130 Mizoram 131 Nagaland 132 Odisha Shri Sudip Gupta Shri Sanjeev Kumar Shri Dhananjay Akhade Shri Charchit Gaur Shri Yumnam Indrakumar Singh Shri Vanlal Chhuanga Shri R. Zosiamliana Shri Kesonyu Yhome Shri Sushil Kumar Lohani Shri Ananad Satapathy Shri N. K. Rautray 133 Odisha 134 Odisha 135 Puducherry Shri L. Kumar 136 Puducherry Shri K. Sridhar 137 Punjab Shri V. K. Garg Information Officer CCT Jt. CCT Commissioner, State Taxes Joint Commissioner, State Taxes Commissioner of Taxes Asst. Commissioner of Taxes Commissioner & Secretary Taxation Addl. Commissioner, State Taxes Commissioner of Taxes Commissioner, CT & GST Special Commissioner of CT & GST Special Secretary, Finance Commissioner (ST) Deputy Commissioner (ST) Financial Advisor to Chief Minister 89 CHAIRMAN'S INITIALS MINUTE BOOK Additional Commissioner, State Tax 138 Punjab Shri Vivek Pratap Singh Commissioner, St....
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....00% End-of-Month 1000% BOOK 6.CON 4.009 2976 1000% 31.356 19.30% 8000% 5811 70.00% 100% 6007 62.36% 50.00% 40.00% 10-40% 20.00% Typically, compliance reaches about 65% by due date • Filing continues and peaks at 80% by the end of the month ⚫ 35% of the filing happens in the last 3-days ⚫ Filing continues in the following months to 5 reach 90%. 10% of the tax payers never file 2.09 000 11 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 - Filing Trend in Jan -2020 2000 0.00% • Concurrency on 20th Jan 2020 crossed 1.5 lakhs (30% more than normal) ⚫ Higher concurrency meant to slower processing. Triggered a negative spiral Actions taken based Jan'20 GSTR-3B Peak Filing and System Review Remedial measures implemented and the staggered filing contributed to better filing experience in Feb 2020. However, capacity augmentation still pending 14.00% Filing Trend in Feb-2020 12.00% 64.29% Email OTP-Root cause traced to Security policies which were corrected 10.00% 800% ⚫ Code Cleanup - Redundant code removed. Logic optimized 6009 4.00% • Configuration - Tu....
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.... 10 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Inverted rates in Manmade Textiles segment ...(2/3) Initial rate: â– 18% on fibre & yarns *5% on fabrics (No refund on fabrics) GST on varns to 12% [Sep 2017] Restriction on refund of ITC removed w.e.f. 1.8.2018 Evolution of Rate Structure Refund of Rs 4000 Cr so far Sector grapples with accumulated ITC Cash flow problems affecting Textile industry ISSUES MO Textiles recommended uniform rates across value chain MMF fibres and yarns to have a uniform tax slab Industry has been raising this Dyeing industry also seeks correction Fitment recommendation Natural Synthetic Others Cotton Polyester Viscose Others 5% 12% Fibre Spinning 5% Yarn 12% 5% Weaving/ Knitting 12% Grey Fabric 12% Processing 12% Dyeing 12% Processed Fabric 12% Input Services Capital goods Other inputs 18% 12% Tech textiles Garments 12% Furnshing/ madeup 12% The proposed changes in rates are shown in blue (bold font) 114 22 12 REQUEST/refernces A BOOK DEPOT Estd, 1949 JAYNA MINUTE BOOK Proposed Rate Structure S. Item Proposed No. GST Rate 1. Cotton and natural fibres (exc....
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....sidered as religious pilgrimage and this demand can have domino effect in general as PTOs. Agenda 2 Ocean Freight Issue Gujarat High Court Judgment: • IGST on ocean freight payable by importer under RCM in case of CIF contracts has been struck down as ultra vires the law. Reasons for striking down: • RCM is only applicable on recipient and importer is not the recipient in CIF cases. • Service from a supplier in non-taxable territory to recipient in non- taxable territory is neither intra nor inter state supply as per GST law. CHAIRMAN'S INITIALS 119 CHAIRMAN'S INITIALS MINUTE BOOK Agenda 2 Ocean Freight Issue Consequence of the judgement: • Level playing field to ISL disturbed. • In case of CIF imports, transport by FSL will not attract tax but by ISL will attract tax. • Existing levy of GST on import freight by importers under RCM has been jeopardized. Fitment Committee Recommendation: • Issue needs further discussion. May be deferred. Agenda 3 MRO Issues •Presently the Indian airlines pay 18% GST on domestic MRO service and only 5% IGST as goods (on most parts) under section 3(7) of customs tariff Act....
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....le] Part of services sub-contracted to Indian MRO, GST Nil Foreign Airline [Routine Flights)/ Foreign Leasing Company GST Nil POS: For B2B services, the location of recipient (I.e. the party giving the contract of service) GST Rate: 12% IGST on goods reimported after repairs: 0% Complete level playing field- No inversion Foreign MRO 122 A BOOK DEPOT Estd. 1949 JAYNA MINUTE BOOK Whether 5% rate on MRO services will cause Inversion in tax structure? Yes! MRO Inputs Tax Paid Input Services Tax Paid Total ITC Available Max Aerospace Group 16.03 GMR Aerotech 1.57 2.45 0.28 1.08 0.19 0.44 0.08 Airworks India Engg 167.28 28.96 Pvt Ltd Total 31.70 0.27 Output Services Payable Payable (MRO) @12% @5% 2.66 20.27 3.65 2.43 1.01 0.36 119.31 21.48 14.32 5.97 28.96 246.57 44.30 29.59 12.33 31.98 Tax Tax Tax Payable @18% 386.15 69.43 46.34 19.31 "All values in Crores Inputs (*100% imported spares) Input Tax 31.7 Cr Output Services 386.15 Cr Input Services (Almost Negligible) Input Tax 0.27 Cr [As per MoCA] Output Tax @ 12% 46.34 Cr Refund '0' Output Tax @ 5% 19.31 Cr Refund '12.7 Cr' Agenda 4: Job work service: alcoholic liq....
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....revious period due to removal of pre-import condition under Advance Authorisation scheme Levy of interest under the provisions of section 50 of the CGST Act, 2017 for delay in payment of tax waiver of filing of FORM GSTR-1 by taxpayers who have availed the special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 Filing of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement Status during Officers Meeting Deferred/Objections on principle. Agreed Agreed Agreed; Net basis retrospectively Agreed Agreed for extension of date and late fee waiver below 2 cr; No consensus on 9/ 9C waiver threshold for 2018- 19 and need to develop 9C for 2019-20 125 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda No 5A(vii) Issue Proposal for amendment in CGST Rules, 2017 5A(viii) & Proposed amendments in the CGST Act, 2017 and Table Agenda 11(iv) IGST Act, 2017 5A(ix) 5A(x) Know Your Supplier Information Return Status during Officers Meeting Agreed, except no consensus on rule 43 (TN/Odisha to give inputs and amendment in section 16 (4) may also be required), 86 (issue of settlement), 89(amendment i....
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....r the month of November, 2019 Seeks to extend the due date for furnishing of return in FORM GSTR-7 for registered persons in Assam, Manipur or Tripura for the month of November, 2019 Seeks to bring into force certain provisions of the Finance (No. 2) Act, 2019 to amend the CGST Act, 2017. Agenda 8: Deemed Ratification of Notifications, Circulars, RoD and Orders (2/4) wwwwwwww Rate notifications issued under CGST Act and UTGST Act 2017 Notification No. 27/2019 INATION TAX MARKET Seeks to further amend notification No. 01/2017 -Central Tax (Rate) to change the rate Central Tax (Rate) dated of GST on goods as per recommendations of the GST Council in its 38th meeting. 30.12.2019 Notification No. 28/2019 Central Tax (Rate) dated 31.12.2019 To amend notification No. 12/2017 - Central Tax (Rate) so as to exempt certain services as recommended by GST Council in its 38th meeting held on 18.12.2019. Notification No. 29/2019 To amend notification No. 13/2017 - Central Tax (Rate) so as to notify certain services Central Tax (Rate) dated under reverse charge mechanism (RCM) as recommended by GST Council in its 38 31.12.019 meeting held on 18.12.2019. Notification No. ....
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.... dated dated 28.06.2017 so as to notify rate of GST on supply of lottery. 21.02.2020 Agenda 8: Deemed Ratification of Notifications, Circulars, RoD and Orders (4/4) Circulars Order issued under CGST Act, 2017 Circular No. 128/47/2019 dated 23.12.2019 Circular No. 129/48/2019 dated 24.12.2019 Circular No. 130/49/2019 dated 31.12.2019 INATION TAX MARKET Generation and quoting of Document Identification Number (DIN) on any communication issued by the officers of the CBIC to tax payers and other concerned persons. Standard Operating Procedure to be followed in case of non-filers of returns Reverse Charge Mechanism (RCM) on renting of motor vehicles. Circular No. 131/1/2020 Standard Operating Procedure (SOP) to be followed by exporters dated 23.01.2020 Removal of Difficulties Seeks to extend the last date for furnishing of annual Order No. 10/2019 return/reconciliation statement in FORM GSTR-9/FORM GSTR- Central Tax dated 9C for F.Y. 2017-18 till 31.01.2020 26.12.2019 Order No. 01/2020-GST dated 07.02.2020 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117 (1A) of the Central Goods and Service Tax Rules, 2017 in certain....
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....N'S INITIALS MINUTE BOOK Agenda Item 5A(i): Circular on taxability of economic surplus (2/2) NATION TAX MARKET • Divergent practices are being followed. Two advance rulings have also been issued. Some investigations have also got taken up based on the advance rulings • National Appellate Authority on Advance Ruling is proposed in case of conflicting orders only for distinct persons but the same is still to be set up ⚫ Officers meeting suggested deferment- Punjab suggested that there are more models and that the issue can be addressed through GST exemption Issues for consideration are: Whether Government should consider clarifications on such contentious issues or should the contentious issues be decided through litigation only Whether GST also to be levied on full value of alcoholic beverages in addition to VAT Agenda Item 5A(ii): Clarification for apportionment of (ITC) in cases of business reorganization u/s 18 (3) and rule 41(1) (1/2) Issuance of Circular to clarify the following: - INATION TAX MARKET In case of demerger, apportionment of unutilized ITC of the transferor shall be done based on the value of assets taken at the State....
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....MINUTE BOOK Agenda Item 5A(iv):: Levy of interest under the provisions of Section 50 of the CGST Act for delay in payment of tax • NATION TAX MARKET Section 50 of CGST Act was amended in 2019 providing for levy of interest only on tax liability discharged through cash; The said provision has not been notified till date as all SGST Acts haven't been amended; For the period July 2017 to September 2019, the interest on gross basis is approx. Rs. 46000 Cr and Rs. 8800 Cr on net basis High Courts of Madras has passed orders that interest should be levied on net liability only; High Courts of Delhi and Gujarat have stayed recovery on gross liability Accordingly, the issue is placed before the GST Council for further decision on the following aspects: Whether interest is to be recovered on the gross tax payable or on the tax paid in cash If the interest is to be recovered on the net cash tax liability,- whether it is to be from a prospective or retrospective date; and if from a prospective date, whether the credit available as closing balance of the tax period will be taken or subsequent credit will also be allowed to be utilised Officer's recommended interest....
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.... upto 03 (Upto 2 Cr) Net n After exemption (%) Number of taxpayer taxpayers base At 5 Cr 1140 580 560 15% At 10 Cr 1552 580 972 26% 85% 74% 6.87 3.78 7% 3.85% Total Revenue (All taxpayers) 4324 580 3744 Exemption DRC- Exempted FOR GSTR-9-C (FY 2017-18) % of total After contributio % of total exemption Number of taxpayer upto 03 (Upto 2 Cr) Net n (%) taxpayers base At 5 Cr 113 At 10 Cr 164 47 66 47 117 13% 23% 87% 77% 6.87 3.78 7% 3.85% Total Revenue (All taxpayers) 553 47 506 If GSTR-9 and GSTR-9C is prescribed only for taxpayers having turnover > Rs. 5 Cr for 2018-19, 85% of the revenue from annual return and 87% of the revenue from reconciliation statement will still be achievable whereas compliance burden will be reduced to 6,87,000 taxpayers instead of 12,42,000 taxpayers. 133 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda Item 5A(vi): Filing of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) (3/3) NATION TAX MARKET Law Committee has recommended that for FY 2018-19, the requirement of filing GSTR-9 and GSTR-9C may be enhanced to taxpayers having aggregate turnover exceeding Rs....
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.... TAX MARKET Rule Rationale In view of the amendments proposed to be made to rule 86, it is proposed that the amount of refund sanctioned is proportionate to the Rule 92 amount debited in cash against the total amount paid for discharging tax liability for the relevant period. Accordingly it is proposed to amend rule 92. To clarify that where the benefit of the Notification No. 78/2017- Customs dated 13.10.2017 and Notification No. 79/2017-Customs dated 13.10.2017 would not be considered to have been availed only Rule 96 where the registered person has paid IGST and Compensation Cess on inputs and has availed exemption of only Basic Customs Duty (BCD) under the said notifications. To provide for recovery of refund of unutilized input tax credit or Insertion integrated tax paid on export of goods where export proceeds are not realised within the time prescribed under FEMA. -Rule 96B NATION TAX MARKET Agenda Item 5A(vii): Amendment of CGST Rules (3/3) Rule Rule 141 FORM GST- RFD-01 Rationale Section 67(8) as well as proviso of rule 147(7) empowers the proper officer for the disposal of goods of perishable or hazardous nature; whereas rule 141(2) empowers....
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.... requirements on a case to case basis. Tamil Nadu has suggested continuation of this provision for calling for Statistics and another Section for information. To remove restriction that information sought under section 150 & 151 may not be used for any proceedings under this Act as some action may get initiated after processing of this information. Consequential change because of amendment proposed in section 151. AGENDA ITEM 5A(VIII): AMENDMENTS TO THE IGST ACT (4/4) Sections Purpose NATION TAX MARKET 16 Zero rated supply of goods or services to be made under LUT only, as a default route i.e. without payment of IGST. Till the time amendment is made, exemption of IGST in case where place of supply is outside India, may be considered. Government may notify a class of suppliers / supplies who can make zero rated supply on payment of IGST and claim refund. supply made to a SEZ developer unit for authorized operations only to be treated as zero-rated supply; to make provision for submission of foreign exchange remittances in case of export of goods within the time period prescribed under Foreign Exchange Management Act (FEMA), 1999. 137 CHAIRMAN'S INITIALS....
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....h retrospective effect: "(e) the supply of goods or services or both, by an association or a body of persons, whether incorporated or not, to its members, for cash, deferred payment or other valuable consideration. Explanation.-for the purpose of this section, an association or a body of persons, whether incorporated or not, and member thereof shall be treated as distinct persons" Maharashtra view is that amendment is not required in view of definition of 'business' and 'person' in the GST Act NATION TAX MARKET Agenda Item 5A(ix): Know Your Supplier (1/2) NATION TAX MARKET To enable every registered person to have some basic information about the suppliers with whom they propose to conduct business, Law Committee recommended 'Know your Supplier' scheme. A new rule to be inserted for display of following parameters in respect of a given GSTIN:- a) Month and Year of registration Under GST; b) Whether a Composition dealer or normal dealer; c) Aggregate Turnover (Slab) (0 to 40 lakhs, 40 lakhs to 1.5 crores, 1.5 crores to 5 crores, 5 Cr to 25, 25 and above); d) Percentage of tax payment in cash (Slab) (% cash set-off i.e. percentage of liability discharged thr....
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....52, OIDAR, non-resident taxable person, Company, Association of persons, anybody of Individuals or a Society, or a Trust from the provisions of Aadhar authentication; As on date, the functionalities for authentication for new registrations and existing registrations have not been rolled out by GSTN. Aadhaar authentication for new registrations is proposed to be operationalized from 1st April 2020 Schedule for operationalisation of Aadhaar authentication of existing registered persons specially the refund claimants may decided on basis of inputs from GSTN. Agenda Item 5A(xii):: Clarification in respect of appeal in NATION regard to non-constitution of Appellate Tribunal MARKET i. Doubts have been raised by some appellate authorities in respect of the appropriate procedure to be followed in absence of appellate tribunal for appeal; ii. Pending clarity in this regard, appeals are not being heard in some jurisdictions iii. Law Committee recommended that a circular may be issued clarifying that appellate authority shall continue to pass orders and while passing order they may mention in the preamble that appeal may be made to the appellate tribunal within three mo....
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....adakh NATION TAX MARKET GSTN informed that the data migration activity for Ladakh was finally processed successfully on 28th February, 2020; Hence, Law Committee has recommended extension of due dates for FORM GSTR-3B for the month of January, 2020 till 20th March, 2020. Similar extension is also required for FORM GSTR-1, and FORM GSTR-7 for January, 20; GSTN has asked for time till 31st March 2020 Agenda is placed before the GST Council for approval of issuance of notification to extend the due dates till 31.03.2020 Agenda Item 5A(xvi): Continuation of existing system of furnishing FORM GSTR-1 & GSTR-3B till September, 2020 NATION TAX MARKET The Law Committee has deliberated on the issues arising out of the revised plan for implementation of the new return system and has recommended that the present return system of GSTR-1 / 3B may be extended for 6 more months; Agenda is placed before the GST Council for approval of issuance of notification to continue the existing system of furnishing FORM GSTR-1 & GSTR-3B till the month of September, 2020. FORM GSTR-3B would be filed by 20th day of succeeding month for taxpayers having aggregate turnover more than 5 c....
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....proposed to be administered by NPCI. Financial transactions for Rs. 100 to Rs. 10,000/- to be eligible for the scheme. The prizes winner shall be identified by NPCI through a random selection from amongst the Digital transactions IDs. There will be a live cast of the draw. - Reward sharing between Consumer and Supplier (Merchant) in ratio 3:1. Based on discussions in the 3rd National GST Conference held on 06.03.2020, the following prizes are proposed for 1 year-12 monthly draws âš« 1 Bumper Prize of Rs. 1 Cr 100 prizes of Rs. 1 lakh each 2000 prizes of Rs. 5000 each 5000 prizes of Rs. 2000 each : Total outlay Rs. 48 Cr. Equal contribution by the Centre & the States from respective CWF NATION TAX Table Agenda 11(i): Circular on refund related issues MARKET Based on the discussions in the 2nd National GST Conference and the recommendations of the CoO on Risk Based management of Taxpayers itis proposed to clarify following issues relating to refund: No refund of ITC under inverted duty structure in case the same is accumulated on account of reduction in rate of GST and where input and output supply are same. No refund in respect of those invoices, the deta....
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....ed before the GST Council for deliberation and approval. The system related modalities would be decided by the GST Policy Wing in consultation with GSTN. 146 BOOK DEPOT Estd. 1949 JAYNA MINUTE BOOK INATION TAX MARKET Table Agenda 11(iii): Categorization of registration and ARK corresponding spike rule (3/3) Application for registration with basic KYC Yes OK Opted for Full registration No Grant of Facilitated registration with certain restrictions for 6 months Granted for 6 months Can pass ITC of Rs. 3 Lacs and after that to depost 20% of ITC passed No refunds to be granted Will have to get full KYC and premise verification within 6 months done Premise Verification Within 6 months or at his own option OK Grant of Normal registration Financial KYC with no restrictions Table Agenda Item 11(v): Clarification in respect of issues for companies under Insolvency and Bankruptcy Code, 2016 NATION TAX MARKET Issues are being faced by entities covered under Insolvency and Bankruptcy Code, 2016 in complying with the provisions of GST Act. A special process needs to be prescribed for collection of GST during the resolution period; Law Committ....
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....us interim order of the Hon'ble High Court dated 20.09.2017 (enclosed as Annexure - B) reads as follows: "4. In the meantime, no coercive action (penal interest, late fees and prosecution) against any of the client of the petitioners members who are referred in the petition and are informing by email, will be protected. The composition scheme is extended upto 30.09.2017, therefore, desirous assessee can apply wwwwww 23 148 NATION TAX MARKET BOOK DEPOT Estd. 1949 JAYNA MINUTE BOOK TABLE AGENDA 11(IX): RAJASTHAN HIGH COURT DB CIVIL WRIT NO. 15239/2017 (2/2) â– Since, under GST law there is no provisions for waiver of interest for delayed filing returns and therefore, Misc. Civil application (WMAP-199/2019) was filed before Hon'ble Court with plea to modified order to such extent that the waiver of interest for delayed filing of return may be deleted or modified as per the order of Court. - In this regard, Order dated 28.02.2020 of Hon'ble Court is reproduced below: "List the matter on 18.03.2020 for orders. In the meantime, learned counsel for the Union of India is directed to obtain instructions as to whether the direction contained in the order dated ....