The 37th meeting of the council held here was chaired by Finance Minister Nirmala Sitharaman.
The relaxation in the filing of annual returns for micro, small and medium enterprises (MSMEs) for 2017-18 and 2018-19 entails a waiver of the requirement of filing Form GSTR-9A for composition taxpayers for the said tax periods.
It also entails filing of form GSTR-9 for those taxpayers who (are required to file the said return but) have an aggregate turnover up to Rs 2 crores made optional for the said tax periods.
It recommended suitable amendments in CGST Act, UTGST Act, and the corresponding SGST Acts in view of the creation of UTs of Jammu and Kashmir and Ladakh.
The council recommended integrated refund system with disbursal by the single authority to be introduced from September 24, 2019.
It approved in-principle decision to link Aadhar with the registration of taxpayers under GST and examine the possibility of making Aadhar mandatory for claiming refunds.
A committee of officers would be constituted to examine simplification of forms for annual return and reconciliation statement.
The council, in order to tackle the menace of fake invoices and fraudulent refunds, took in-principle decision to prescribe reasonable restrictions on the passing of credit by risky taxpayers including risky new taxpayers.
It recommended the extension of the last date for filing of appeals against orders of Appellate Authority before the GST Appellate Tribunal as the Appellate Tribunals are yet not functional.
"In order to nudge taxpayers to timely file their statement of outward supplies, the imposition of restrictions on availing input tax credit by the recipients in cases where details of outward supplies are not furnished by the suppliers in the statement under section 37 of the CGST Act, 2017," an official release said.
It said a new return system would be introduced from April 2020 (earlier proposed from October 2019), in order to give ample opportunity to taxpayers as well as the system to adapt.
The council recommended issuance of circulars for uniformity in the application of the law across all jurisdictions.