GST Council: 12 items discussed, here's updates on multiplexes, e-vehicles, GST forms, auto and realty sector

Last Updated: Fri, Jun 21, 2019 22:02 hrs

New Delhi:In a major relief to trade and businesses, the GST Council, in its first meeting after the Modi government came back to power, extended the cut-off date for filing annual returns, by two months, to August 2019.

Easing the enrollment process for new firms, the Council decided to allow the use of 12-digit Aadhaar number for getting GST registration.

In order to check tax evasion, it also made it mandatory for multiplexes to issue e-tickets.

The Council, chaired by Union Finance Minister Nirmala Sitharaman, extended the tenure of National Anti-Profiteering Authority by two more years to ensure companies pass on the benefits of lower GST rates to consumers.

Addressing a press conference after the meeting, Revenue Secretary Ajay Bhushan Pandey termed the decision as consumer-friendly.

"In order to ensure GST rates cuts are actually passed on to customers and no anti-profiteering takes place, the current provision is that only the penalty of Rs 25,000 will be imposed in addition to the profiteered amount. So, the change approved by the Council is that now if profiteered amount is not deposited within 30 days, then the penalty to the extent of 10 per cent of the profiteered amount will be imposed on the company," he said.

The Council, however, deferred the decision on lowering the GST rate on electric vehicles from 12 per cent to 5 per cent and referred the issue to a committee of officers for further analysis. The issue of lower duty on electric chargers would also be discussed by the committee before taking a final call.

"Both these issues and the third proposal, on reducing the rate on the leasing of electric vehicles have been sent to the fitment committee, and it will deliberate on these proposals and come back to the GST Council on these proposals," the Revenue Secretary said.

Hectic lobbying by cement companies and builders, however, failed to convince the apex indirect tax body to cut the GST on cement from 28 per cent to 18 per cent.

The automobile sector also did not get any relief from the GST Council.

What the Press note says:

In its press release, the ministry added that a total of 12 agenda items were discussed during the meeting.

The note added that Council had also decided to introduce electronic invoicing system in a phase-wise manner for B2B transactions. E-invoicing is a rapidly expanding technology which would help taxpayers in backward integration and automation of tax relevant processes. It would also help tax authorities in combating the menace of tax evasion. The Phase 1 is proposed to be voluntary and it shall be rolled out from January 2020.

Electric Vehicles:

On issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle, the Council recommended that the issue be examined in detail by the Fitment Committee and brought before the Council in the next meeting.

Solar Power Generating Systems and Wind Turbines:

In terms of order of the Hon’ble High Court of Delhi, GST Council directed that the issue related to valuation of goods and services in a solar power generating system and wind turbine be placed before next Fitment Committee. The recommendations of the Fitment Committee would be placed before the next GST Council meeting.


Group of Ministers (GoM) on Lottery submitted report to the Council. After deliberations on the various issues on rate of lottery, the Council recommended that certain issues relating to taxation (rates and destination principle) would require legal opinion of Learned Attorney General.

GST Tax related notifications:

Between July, 2019 to September, 2019, the new return system (FORM GST ANX-1&FORM GST ANX-2 only) to be available for trial for taxpayers. Taxpayers to continue to file FORM GSTR-1&FORM GSTR-3B as at present;

From October, 2019 onwards, FORM GST ANX-1 to be made compulsory. Large taxpayers (having aggregate turnover of more than Rs. 5 crores in previous year) to file FORM GST ANX-1 on monthly basis whereas small taxpayers to file first FORM GST ANX-1 for the quarter October, 2019 to December, 2019 in January, 2020; For October and November, 2019, large taxpayers to continue to file FORM GSTR-3B on monthly basis and will file first FORM GST RET-01 for December, 2019 in January, 2020. It may be noted that invoices etc. can be uploaded in FORM GST ANX-1 on a continuous basis both by large and small taxpayers from October, 2019 onwards. FORM GST ANX-2 may be viewed simultaneously during this period but no action shall be allowed on such FORM GST ANX-2; From October, 2019, small taxpayers to stop filing FORM GSTR-3B and to start filing FORM GST PMT-08. They will file their first FORM GST-RET-01 for the quarter October, 2019 to December, 2019 in January, 2020;From January, 2020 onwards, FORM GSTR-3B to be completely phased out.

On account of difficulties being faced by taxpayers in furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C, the due date for furnishing these returns/reconciliation statements to be extended till 31.08.2019.

To provide sufficient time to the trade and industry to furnish the declaration in FORM GST ITC-04, relating to job work, the due date for furnishing the said form for the period July, 2017 to June, 2019 to be extended till 31.08.2019.

Certain amendments to be carried out in the GST laws to implement the decisions of the GST Council taken in earlier meeting.

Rule 138E of the CGST rules, pertaining to blocking of e-way bills on non-filing of returns for two consecutive tax periods, to be brought into effect from 21.08.2019, instead of the earlier notified date of 21.06.2019.

Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, to be extended from 30.04.2019 to 31.07.2019.

*With inputs from IANS