Note on 38^th GST Council Meeting

(Law and Procedure related changes)

The 38th GST Council meeting was held on 18^th of December, 2019 in New Delhi.

The GST Council recommended the following:

  1. Due date extension of GSTR-9 and GSTR-9C

Due date for annual return in Form GSTR-9 and reconciliation statement in Form GSTR-9C for FY 2017-18 to be extended from 31-12-2019 to 31.01.2020.

  2. Waiver of late fee of pending GSTR-1

Late fee in respect of all pending GSTR-1 for the period July, 2017 to November, 2019, to be waived off, if the same are filed by 10.01.2020.

  3. Blocking of e-way bill on non-furnishing of GSTR-1

Apart from blocking of e-way bill facility for non-filing of GSTR-3B for the last two successive months which became operational from November, 2019, the e-way bill shall also be blocked on account of non-filing of GSTR-1 for two tax periods.

  4. ITC restriction of invoices not reflected in GSTR-2A reduced to 10%

Restriction of input tax credit to the recipient for invoices or debit notes that are not reflected in his Form GSTR-2A reduced to 10% from earlier 20% imposed vide Rule 36(4), of the eligible credit available in respect of invoices or debit notes reflected in its Form GSTR-2A.

  5. Constitution of Grievance Redressal Committee at Zonal/State level

To address grievances of specific or general nature of taxpayers, Grievance Redressal Committees (GRC) will be constituted at the Zonal/ State level with both CGST and SGST officers including representatives of trade and industry and other GST stakeholders.

  6. Fraudulently availed ITC to be blocked

Appropriate action to be taken to block fraudulently availed input tax credit in certain situations to control fake invoice generation.

  7. Extension of GST return for North Eastern States

Due date of filing GST returns for the month of November, 2019 to be extended in respect of a few North Eastern States.

  8. Exemption from upfront amount for long term lease to entity with 20% or ownership of Central/State government

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 to be exempted from GST w.e.f. 01.01.2020.

  9. Single GST rate of 28% on lottery

To levy a single rate of GST @ 28% on both State run and State authorized lottery w.e.f. 1st March, 2020.

10. Bags & sacks (woven/non-woven) made of polythylene or polypropylene strips to be taxed at 18% GST

Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, laminated or not, classified under HSN code 3923 or 6305 to be chargeable at the rate of 18% GST from 12% GST rate with effect from 1-1-2020.

11. Standard Operating Procedures to be issued

A Standard Operating Procedure for tax officers would be issued in respect of action to be taken in cases of non-filing of FORM GSTR 3B returns.