Dear Reader,
Greetings for the day!!!
We are pleased to share AKGVG's Weekly Insight, dated 22 December, 2018 which includes:
Date: 22.12.2018
Gist of 31st GST Council meeting held on 22.12.2018

The 31st GST council meeting chaired by Mr Arun Jaitley on 22.12.2018 at New Delhi provided a sigh of relief for the common man as rates were slashed for several items. Also announcements were made for extension of several returns along with clarifications for their fillings.

Key updates has been summarized as under :

Rate change of goods and services:

Rates on 23 items from 18 per cent to 12 per cent and 5 per cent. Many items including television, computers and various auto parts will be cheaper now. Some items in the 5 per cent bracket have been moved to 0 per cent. Also GST rates were reduced and exemptions provided on several services. The decisions of the GST Council have been presented in this note for easy understanding in the said PIB. The same would be given effect to through Gazette notifications/ circulars which shall have force of law.


  • 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 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.
  • 6. The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.
  • 7. 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.
  • 8. All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01Ashall 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.
  • 9. Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills.
  • 10. 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.

It is to be notes that requisite Notifications/Circulars for implementing the recommendations of the GST Council shall be issued shortly.

Certain important issues referred by GST Council to various Committees / GoM:

  • i. Extending the Composition scheme to small service providers. The rate of tax and threshold limit to be proposed - Law Committee and Fitment Committee.
  • ii. Tax rate on lotteries – Committee of States.
  • iii. Taxation of residential property in real estate sector – Law Committee and Fitment Committee.
  • iv. Threshold limit of exemption under GST regime – GoM on MSMEs.

GST council in its next meeting would take a view on the above issues in its next meeting.

Formation of GoM:

The GST Council has approved the proposal to form a 7 Member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the States.

In-Principle approval given for law amendments:

  • 1. Creation of a Centralised Appellate Authority for Advance Ruling (AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue.
  • 2. Amendment of section 50 of the CGST Act to provide that interest should be charged only on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be leviable only on the amount payable through the electronic cash ledger.

The above recommendations of the Council will be made effective only after the necessary amendments in the GST Acts are carried out.

We trust you will find this Journal informative as well as useful.
For any queries, you can write to us at "info@akgvg.com".
Looking forward to receive your valuable feedback

Disclaimer: The entire contents of this Journal have been prepared on the basis of relevant provisions and information existing at the time of preparation. The observations of the author are personal view and the author does not take any responsibility of the same and this cannot be quoted without the written consent of the author.

Best Regards!
Knowledge Updates Team
AKGVG & Associates
(Chartered Accountants)

Tel: +91 9811118031, 9818330516,
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Website: http://www.akgvg.com