Highlights of the 38th GST Council Meeting Held in Delhi

38th GST Council Meeting

GST’s 38th Council Meeting was held on 18th Dec 2019, Delhi was chaired by Honorable Finance Minister Nirmala Sitharaman. Other attendees of the meeting were Union Minister of State Finance & Corporate Affairs Shri Anurag Thakur, Finance Minister of States & UT and Senior Officers of Ministry of Finance.

This meeting was concluded with some major and some minor changes in the GST rates, the annual return filing dates, ITC provision, and penalties. This is an overview of the 38th GST Council Meeting.

Glimpse of the 38th GST Council Meeting

  1. Due Dates have been extended for GSTR-9 and GSTR-9C for the FY 2017-18. The government has extended the date till 31st January 2020.
  2. Due date of filing GST returns for the month of November 2019 to be extended in respect of a few North Eastern States.
  3. Waiver of late fee to be given to all taxpayers if they file all their pending GSTR-1 from July 2017 to November 2019, if the same are filed by 10th January 2020.
  4. E-way bill for taxpayers who have not filed their GSTR-1 for two consecutive tax periods will be blocked.
  5. Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his GSTR-2A shall be restricted to 10 percent of the eligible credit available
  6. SOP (Standard Operating Procedure) will be issued to benefit the tax officers for the actions taken for the non-filing of GSTR-3B. This will help them in blocking or reversal of any fake ITC availed.
  7. Setting up the Grievance Redressal Committee at State/Zonal level to address any kind of grievances of the taxpayers. These committees will be formed so that taxpayers don’t have to wait long to have answers to their problems.
  8. There are numerous law amendments approved by the Council that will soon be introduced to all in the Budget 2020.
  9. To exempt upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Presently, the exemption is available to an entity having 50% or more ownership of the Central or State Government. This change shall become effective from 1st January 2020.
  10. To levy a single rate of GST @ 28% on both State-run and State-authorized lottery. This change shall become effective from 1st March 2020.
  11. The Council also considered the rate of GST rate on Woven and Non-Woven Bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods ( HS code 3923/6305) in view of the requests received post the changes recommended on such goods in the last meeting and recommended to raise the GST to a uniform rate of 18% (from 12%) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1st January 2020.

Closing Note

In our last blog, we spoke about the  37th GST Council Meeting that was held on 20th September 2019, where the government introduced the new e-invoicing system. Organizations with a turnover of 500 crores and above would be required to start using the new mechanism from Jan 2020.   Cygnet GSP offers comprehensive solutions to help companies in their GST compliance. To know more about us you can connect with our team on hello@cygnetgsp.in.

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