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Brief insight on the recommendations of 38th GST council meet

1. Waiver of FORM GSTR-1 late fees

Late fees for FORM GSTR-1 for period(s) july-2017 to November-2019, as proposed shall be waived off if filled by 10th January 2020

2. E-way Bill for taxpayers who have not filed their FORM  GSTR-1 for two tax periods shall be blocked.

3. Provisional ITC further restricted to 10%

Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.

Reduction from 20% to 10% of un-reflected invoices or debit notes, tightens the pro-activeness towards compliance both on part of seller and buyer.

4. FORM GSTR-9 and 9C due date extended to 31st January 2020.

Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2017-18 is proposed to be extended to 31.01.2020.

Note: It is optional to file Form-9 for businesses having turnover up to 2 crores rupees both for FY 2017-18 and 2018-19.

Note: For FY 2018-19 due date for Form-9 & 9C is 31st March 2020.

5. Initiative against fake invoices

To check the menace of fake invoices, suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations.

Also, recently CBIC has made it mandatory for certain class of taxpayers as prescribed to comply with provisions of E-Invoice from specified date.

6. 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.

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

Note: Recently there has been due date extension of various forms for taxpayers located in Jammu and Kashmir.

8. The Council also approved various law amendments which will be introduced in Budget 2020.

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

10. 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 Central or State Government. This change shall become effective from 1st January, 2020.

GST Council exempts long term lease on industrial plots to facilitate setting up of industrial parks: Revenue Secretary

11. 28% Tax on all lotteries

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.

The council opted for voting to conclude the matter and 21 states voted in favour of a uniform rate

Note: Prior to this, valuation rule 31A stated the following rates:

12. GST Rate increased from 12% to 18% on bags and sacks of polythene

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) was recommended to be raised to a uniform rate of 18%(from 12% earlier, removing inverted tax structure) on all such bags falling under HS 3923/6305 including Flexible Intermediate Bulk Containers (FIBC). This change shall become effective from 1st January, 2020.


A presentation was made to the GST Council on the issue of revenue, GST rate structure and compensation needs of the States. Before the presentation, the Convenor of GoM on revenue augmentation Sh. Sushil Kumar Modi, Dy CM (Bihar) made opening remarks about the revenue position and future roadmap. The presentation made thereafter was based on discussions in the Committee of officers of State and Centre on revenue augmentation. The revenue trends since inception of GST as shown below was taken note of –

A constructive discussion followed the presentation covered a wide range of issues such as measures for encouraging voluntary compliance, expanding tax base, measures to improve return filing and tax collection and rate rationalization.

Automation measures such as e-invoice, new return system, QR code on bills were also discussed. To exchange knowledge about best practices of tax administration,

State of UP and UT of J&K made presentation on their effort to improve GST collection, as in the recent past they have shown a healthy growth in compliance.

GST Council gave necessary guidance on further analysis regarding exemption and concession impact analysis, tax base analysis, sensitivity analysis and compliance measures needed to keep pace with revenue needs.

The Council also directed for expeditious implementation of IT and other initiatives.

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