waiver of late fee for GSTR 1

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Government of India Ministry of Finance (Department of Revenue)

Central Board of Indirect Taxes and Customs

Notification No. 75/2018 – Central Tax    New Delhi, the 31st December, 2018  G.S.R.....(E),– In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 4/2018– Central Tax, dated the 23rd January, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R.53(E), dated the 23rd January, 2018, namely:–

In the said notification, after the proviso, the following proviso shall be inserted, namely:–

 “Provided further that the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the details of outward supplies in FORM GSTR-1 for the months/quarters from July, 2017 to September, 2018 by the due date but furnishes the said details in FORM GSTR-1 between the period from 22nd December, 2018 to 31st March, 2019.
[F.No.20/06/16/2018-GST]


(Dr. Sreeparvathy S.L.) Under Secretary to the Government of India
  Note:- The principal notification No. 4/2018-Central Tax, dated 23rd January, 2018 was published in the Gazette of India, Extraordinary, vide number G.S.R. 53 (E), dated the 23rd January, 2018

waiver of late fee for GSTR 3B

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] 

Government of India Ministry of Finance (Department of Revenue) 

Central Board of Indirect Taxes and Customs 

Notification No. 76/2018 – Central Tax    New Delhi, the 31st December, 2018  G.S.R.....(E),– In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council , and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 28/2017 – Central Tax, dated the 1st September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1126 (E), dated the 1st September, 2017, notification of the Government of India in the Ministry of Finance, Department of Revenue No. 50/2017 – Central Tax, dated the 24th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1326 (E), dated the 24th October, 2017 and notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 64/2017– Central Tax, dated the 15th November, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.1420(E), dated the 15th November, 2017, except as respects things done or omitted to be done before such supersession, hereby waives the amount of late fee payable by any registered person for failure to furnish the return in FORM GSTR-3B for the month of July, 2017 onwards by the due date under section 47 of the said Act, which is in excess of an amount of twenty-five rupees for every day during which such failure continues:

Provided that where the total amount of central tax payable in the said return is nil, the amount of late fee payable by such registered person for failure to furnish the said return for the month of July, 2017 onwards by the due date under section 47 of the said Act shall stand waived to the extent which is in excess of an amount of ten rupees for every day during which such failure continues:

 Provided further that the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to September, 2018 by the due date but furnishes the said return between the period from 22nd December, 2018 to 31st March, 2019.


[F.No.20/06/16/2018-GST]


(Dr. Sreeparvathy S.L.) Under Secretary to the Government of India

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waiver of late fee GST (GSTR-4)

Late fee shall be levied on the late filing of GST returns as per Central Goods and Services Act (CGST Act).

Chapter IX of CGST Act prescribes the due date of furnishing different GST returns. In case, GST returns are not furnished within the time limit, late fees shall be levied on it.

The due date of furnishing the GSTR 1 is tenth day of the month succeeding the said tax period. If a registered person furnished the GSTR 1 after 10thof next month, then such person shall be liable to pay a penalty of two hundred rupees for delay of each day.

Revised Late Fee Rates:

The government has reduced the rates of late fees on late filing of GSTR-1, GSTR-3B (October 2017 onwards), GSTR-4, GSTR-5, GSTR-5A and GSTR6 by way of different notifications.

Currently, for the aforesaid returns, the late fees for filing the normal return is 50 rupees for each day of delay and for nil return, it is 20 rupees per day.

For example: A taxpayer has filed GSTR 3B of November 2018, on 29th of December, whose due date is 20th December.

Such taxpayer shall be liable for late fees of Rs. 180 (Rs. 20 per day*9 days).

It is to be noted that, in the GST Portal, late fees for a month is added in the return of subsequent month.

In the aforesaid example, the late fees of Rs. 180 for November 2018 return will be added in the return of subsequent month i.e. in GSTR 3B of December, 2018.

Recommendation made in 31st Council Meeting:

In the recent 31st Council Meeting, GST Council has recommended that late fees shall be completely waived for all taxpayers in case of GSTR-1, GSTR 3B & GSTR-4 return for the months/quarters July, 2017 to September, 2018, if these returns are furnished after 22.12.2018 but on or before 31.03.2019.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs 

Notification No. 77/2018 – Central Tax    New Delhi, the 31st December, 2018  G.S.R.....(E),– In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance, Department of Revenue No. 73/2017– Central Tax, dated the 29th December, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide number G.S.R.1600(E), dated the 29th December, 2017, namely:– 

In the said notification, after the first proviso, the following proviso shall be inserted, namely:– 

 “Provided further the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the return in FORM GSTR-4 for the quarters from July, 2017 to September, 2018 by the due date but furnishes the said return between the period from 22nd December, 2018 to 31st March, 2019.”. 


[F.No.20/06/16/2018-GST] 


(Dr. Sreeparvathy S.L.) Under Secretary to the Government of India 
  Note:- The principal notification No. 73/2017-Central Tax, dated the 29th December, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 1600 (E), dated the 29th December, 2017. 

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CBIC exempt certain services from CGST w.e.f. 1st January 2019

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] 

Government of India Ministry of Finance  (Department of Revenue) 

Notification No. 28/2018- Central Tax (Rate) 

New Delhi, the 31st December, 2018
G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- Central Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28thJune, 2017, namely:-

In the said notification, - (i)in the Table, - (a) after serial number 21A and the entries relating thereto, the following serial number and entries shall be inserted, namely: - (1) (2) (3) (4) (5) “21B Heading 9965 or Heading 9967 Services provided by a goods transport agency, by way of transport of goods in a goods carriage, to, - (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services. Nil Nil”;

(b) after serial number 27 and the entries relating thereto, the following serial number and entries shall be inserted, namely: - (1) (2) (3) (4) (5) “27A Heading 9971 Services provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY). Nil Nil”;

(c) against serial number 34A, in the entry in column (3), after the letters and words “PSUs from the”, the words “banking companies and” shall be inserted;
2



(d) against serial number 66, for the entry in column (2), the following entry shall be substituted namely: - “Heading 9992 or Heading 9963”;

(e) serial number 67 and the entries relating thereto, shall be omitted;

(f) after serial number 74 and the entries relating thereto, the following serial number and entries shall be inserted, namely: - (1) (2) (3) (4) (5) “74A Heading 9993 Services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Incometax Act, 1961 (43 of 1961). Nil Nil”;

(ii) in paragraph 2, after clause (za), the following clause shall be inserted, namely: - “(zaa) “financial institution” has the same meaning as assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934).”.

2. This notification shall come into force on the 1st day of January, 2019.

[F. No.354/428/2018 -TRU]


(Gunjan Kumar Verma) Under Secretary to the Government of India

Note: -The principal notification No. 12/2017 - Central Tax (Rate), dated the 28thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 691 (E), dated the 28th June, 2017 and was last amended by notification No. 23/2018 - Central Tax (Rate), dated the 20th September, 2018 vide number G.S.R. 906(E), dated the 20th September, 2018.

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Reg. GST on Transport of goods in containers by rail by any person other than Indian Railways

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] 

Government of India Ministry of Finance  (Department of Revenue) 

Notification No. 30/2018-Central Tax (Rate) 

New Delhi, the 31st December, 2018

G.S.R......(E).- In exercise of the powers conferred by sub-section (3) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28thJune, 2017, hereby inserts the following Explanation in  the said notification, in the Table, against serial number 9, in column (3), in item (vi), namely:-

“Explanation 2.-Nothing contained in this item shall apply to supply of a service other than by way of transport of goods from a place in India to another place in India.”.

2. The existing Explanation in the above item shall be renumbered as Explanation 1.

3. This notification shall come into force on the 1st day of January, 2019.

[F. No.354/428/2018-TRU] 

(Gunjan Kumar Verma)  Under Secretary to the Government of India

Note: -The principal notification No. 11/2017 – Central Tax(Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and was last amended by notification No. 17/2018-Central Tax (Rate), dated the 26th July, 2018 vide number G.S.R. 681(E), dated the 26th July, 2018.

New services under Reverse Charge Mechanism wef 1st January 2019

Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council in its 31st meeting held on 22.12.2018.

Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 29/2018- Central Tax (Rate)

New Delhi, the 31St December, 2018

GSR……. (E).- In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th June, 2017, namely:-

In the said notification,‑

(i) in the Table,‑

(a) against serial number 1, in the entry in column (2), after item (g), the following proviso shall be inserted, namely: ‑

“Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, ‑

(a) a Department or Establishment of the Central Government or State Government or Union territory; or

(b) local authority; or

(c) Governmental agencies,

which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.”;

(b) after serial number 11 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –

(1)	(2)	(3)	(4)
“12.	Services provided by business facilitator (BF) to a banking company	Business facilitator (BF)	A banking company, located in the taxable territory
13.	Services provided by an agent of business correspondent (BC) to business correspondent (BC).	An agent of business correspondent (BC)	A business correspondent, located in the taxable territory.
14.	Security services (services provided by way of supply of security personnel) provided to a registered person: Provided that nothing contained in this entry shall apply to, – (i)    (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies; which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or (ii) a registered person paying tax under section 10 of the said Act.	Any person other than a body corporate	A registered person, located in the taxable territory.”;

(ii) in the Explanation, after clause (g), the following clause shall be inserted, namely:‑

“(h) provisions of this notification, in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament and State Legislatures.”.

2. This notification shall come into force on the 1″ day of January, 2019.

[F. No. 354/428/2018- TRU]

(Gunjan Kumar Verma)

Under Secretary to the Government of India

Note: -The principal notification No. 13/2017 – Central Tax (Rate), dated the 28th June, 2017was published in the Gazette of India, Extraordinary, vide number G.S.R. 692 (E), dated the 28th June, 2017 and was last amended by notification No. 15/2018 – Central Tax (Rate), dated the 26th July, 2018 vide number G.S.R. 679(E), dated the 26th July, 2018.

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Time of supply

In order to calculate and discharge tax liability it is very import to know the date when the tax liability arises

Time of supply of goods

Earliest of the following dates:

• Date of issue of invoice by the supplier.

• Date on which the supplier receives the payment

Time of supply of services

Earliest of the following dates:

• Date of issue of invoice by the supplier

• Date of provision of service

• Date on which the recipient shows the receipt of service in his books of account, in case the aforesaid two provisions do not apply

To understand the provision of advance payment on goods or services

Let’s take an example

Firm ‘A’ receives an advance of Rs. 2500/- on 29.07.17 for goods worth Rs. 10000/- to be supplied in the month of September, then it is deemed that firm ‘A’ has made a supply of Rs. 2500/- on 29.07.17 and tax liability on Rs. 2500/- is to be discharged by 20.08.17.

But government will be set a maximum limit for the advance of payment. If any advance received for a supply of goods or services the amount will be 1000 or less than it is the choice of the supplier that the invoice will be issue on the date of supply of goods or services.

What is the time limit for issue of invoice for goods and services?

As per section 31 of the CGST Act, an invoice for supply of goods needs to be issued before or at the time of removal of goods for supply to the recipient, where the supply involves movement of goods.

Similarly an invoice for supply of services needs to be issued before or after the provision of service but not later than thirty days from the date of provision of service.

Time of supply in case of Reverse Charger

Time of supply of goods

Earliest of the following dates:

• Date of receipt of goods

• Date on which the payment is entered in the books of accounts of the recipient or the date on which the payment is debited in his bank account, whichever is earlier?

 • Date immediately following 30 days from the date of issue of invoice or any other legal document in lieu of invoice by the supplier

Time of supply of services

Earliest of the following dates:

• Date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier?

 • Date immediately following 60 days from the date of issue of invoice or any other legal document in lieu of invoice by the supplier

Time of supply of services in case of supply by Associated Enterprises located outside India

 In this case, the time of supply is the date of entry in the books of account of the recipient or the date of payment, whichever is earlier.

Change in Rate of Tax in respect of supply of goods or services

 The normal time of supply rules changes if there is a change in the rate of tax of supply of goods or services. In this scenario, time of supply has to be determined in the following manner:

 Supply is completed before the change in rate of tax

Invoice issued before the date of change in tax rate	Payment received before the date of change in tax rate	Time of supply	Applicable rate of tax
No	No	Earliest of the date of invoice or payment	New rate of tax
Yes	No	Date of issue of invoice	Old tax rate
No	Yes	Date of receipt of payment	Old tax rate

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Registration and cancellation of GST

Today we are again discussing about some advance provision of GST Registration and about cancellation of GST

Issue of Registration certificate.

A certificate of registration in FORM GST REG-06 showing the principal place of business and additional place or places of business shall be made available to the applicant on the common portal

A Goods and Services Tax Identification Number shall be assigned subject to the following characters, namely:-

(a) Two characters for the State code;

(b) Ten characters for the Permanent Account Number or the Tax Deduction and Collection Account Number;

(c) Two characters for the entity code; and

(d) One checksum character.

Date of registration

Date which show on the GST certificate

The registration shall be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within a period of thirty days from such date.

Where an application for registration has been submitted by the applicant after the expiry of thirty days from the date of his becoming liable to registration, the effective date 7 of registration shall be the date of the grant of registration under sub-rule (1) or sub-rule (3) or sub-rule (5) of rule 9.

Separate registration for multiple business verticals within a State

If a person have multiple business verticals within a State or a Union territory than he will be need a separate registration.

(1) Any person having multiple business verticals within a State or a Union territory, requiring a separate registration for any of its business verticals under sub-section (2) of section 25 shall be granted separate registration in respect of each of the verticals subject to the following conditions, namely:-

(a) Such person has more than one business vertical as defined in clause (18) of section 2;

 (b) The business vertical of a taxable person shall not be granted registration to pay tax under section 10 if any one of the other business verticals of the same person is paying tax under section 9;

(c) All separately registered business verticals of such person shall pay tax under the Act on supply of goods or services or both made to another registered business vertical of such person and issue a tax invoice for such supply.

Explanation.- For the purposes of clause (b), it is hereby clarified that where any business vertical of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other business verticals of the said person shall become ineligible to pay tax under the said section.

(2) A registered person eligible to obtain separate registration for business verticals may submit a separate application in FORM GST REG-01 in respect of each such vertical.

(3) The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.

Application for cancellation of registration.-

a person to whom a registration has been granted under rule 12 or a person to whom a Unique Identity Number has been granted under rule 17, seeking cancellation of his registration under sub-section (1) of section 29 shall electronically submit an application in FORM GST REG-16,

attached some details of input held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment

including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment,

Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration.

Registration to be cancelled in certain cases.-

 The registration granted to a person is liable to be cancelled, if the said person,-

(a) If the registration person does not conduct any business from the declared place of business;

(b) Issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder; or

 (c) Violates the provisions of section 171 of the Act or the rules made thereunder.

Cancellation of registration.-

(1)    Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue a notice to such person in FORM GST REG-17,

 Requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled.

(2)    The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM REG–18 within the period specified in the said sub-rule.

(3)    Where the reply furnished under sub-rule (2) is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG –20.

(4)    The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself.

if a person shall applied for cancellation than he is liable for return or not

Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under sub-rule (1) of rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under subsection (5) of section 29.

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DATE OF GSTR-9 AND GSTR- 8 WILL EXTENDED

The GST Council in its 31st meeting held today at New Delhi made the following policy recommendations:

1. There would be a single cash ledger for each tax head. The modalities for implementation would be finalised in consultation with GSTN and the Accounting authorities.

2. A scheme of single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on pilot basis. The modalities for the same shall be finalized shortly.

3. The new return filing system shall be introduced on a trial basis from 01.04.2019 and on mandatory basis from 01.07.2019.

4. The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till 30.06.2019.

5. The following clarificatory changes, inter-alia, shall be carried out in the formats/instructions according to which the annual return / reconciliation statement is to be submitted by the taxpayers:

i. Amendment of headings in the forms to specify that the return in FORM GSTR-9 & FORM GSTR-9A would be in respect of supplies etc. ‘made during the year’ and not ‘as declared in returns filed during the year’;

ii. All returns in FORM GSTR-1&FORM GSTR-3B have to be filed before filing of FORM GSTR-9 &FORM GSTR-9C;

iii. All returns in FORM GSTR-4 have to be filed before filing of FORM GSTR-9A;

iv. HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies;

v. Additional payments, if any, required to be paid can be done through FORM GST DRC-03 only in cash;

vi. ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C;

vii. All invoices pertaining to previous FY (irrespective of month in which such invoice is reported in FORM GSTR-1) would be auto-populated in Table 8A of FORM GSTR-9;

viii. Value of “non-GST supply” shall also include the value of “no supply” and may be reported in Table 5D, 5E and 5F of FORM GSTR-9;

ix. Verification by taxpayer who is uploading reconciliation statement would be included in FORM GSTR-9C.

8. The due date for furnishing FORM GSTR-8 by e-commerce operators for the months of October, November and December, 2018 shall be extended till 31.01.2019.

7. The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.

8. ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March, 2019, subject to specified conditions.

9. All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly.

10. The following types of refunds shall also be made available through FORM GST RFD-01A:

i. Refund on account of Assessment/Provisional Assessment/Appeal/Any Other Order;

ii. Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa;

iii. Excess payment of Tax; and

iv. Any other refund.

11. In case of applications for refund in FORM GST RFD-01A(except those relating to refund of excess balance in the cash ledger)which are generated on the common portal before the roll out of the functionality described in point (10) above, and which have not been submitted in the jurisdictional tax office within 60 days of the generation of ARN, the claimants shall be sent communications on their registered email ids containing information on where to submit the said refund applications. If the applications are not submitted within 15 days of the date of the email, the said refund applications shall be summarily rejected, and the debited amount, if any, shall be re-credited to the electronic credit ledger of the claimant.

12. One more window for completion of migration process is being allowed. The due date for the taxpayers who did not file the complete FORM GST REG-26 but received only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019/quarters July, 2017 to December, 2018 by such taxpayers shall be extended till 31.03.2019.

13. Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months / quarters July, 2017 to September, 2018, are furnished after 22.12.2018 but on or before 31.03.2019.

14. Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN/NIC make available the required functionality.

15. Clarifications shall be issued on certain refund related matters like refund of ITC accumulated on account of inverted duty structure, disbursal of refunds within the stipulated time, time allowed for availment of ITC on invoices, refund of accumulated ITC of compensation cess etc.

16. Changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.

The requisite Notifications/Circulars for implementing the above recommendations of the GST Council shall be issued shortly. (PIB)

GST Rate Reduction proposed by GST Council during 31st Meeting

Recommendations made during 31st Meeting of the GST Council held on 22nd December, 2018 (New Delhi)-Rate changes

GST Council in the 31st meeting held on 22nd December, 2018 at New Delhi took following decisions relating to changes in GST rates on goods and services. The decisions of the GST Council have been presented in this note for easy understanding. The same would be given effect to through Gazette notifications/ circulars which shall have force of law.

A. 28% to 18%

·         Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483

·         Monitors and TVs of upto screen size of 32 inches

·         Re-treaded or used pneumatic tyres of rubber;

·         Power banks of lithium ion batteries. Lithium ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium ion battery.

·         Digital cameras and video camera recorders

·         Video game consoles and other games and sports requisites falling under HS code 9504.

B. 28% to 5%

·         Parts  and accessories for the carriages for disabled persons

II. GST rate reduction on other goods,-

A. 18% to 12%

·         Cork roughly squared or debagged

·         Articles of natural cork

·         Agglomerated cork

B. 18% to 5%

Marble rubble

C. 12% to 5%

·         Natural cork

·         Walking Stick

·         Fly ash Blocks

D. 12% to Nil:

·         Music Books

E. 5% to Nil

·         Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container

·         Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

III. GST on solar power generating plant and other renewable energy plants

·         GST rate of  5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.

·         Certain disputes have arisen regarding GST rates where specified goods attracting 5% GST are supplied along with services of construction etc and other goods for solar power plant.

·         To resolve the dispute the Council has recommended that in all such cases, the 70% of the gross value shall be deemed as the value of supply of said goods attracting 5% rate and the remaining portion (30%) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.

Reduction in GST rates/exemptions on services:

·         GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets upto Rs. 100 from 18% to 12%.

·         GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%

·         Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.

·         Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services). (PIB)