GST Council in its 26th meeting held in New Delhi on 10th March, 2018 has made the following recommendations which are stated below:
I. Return filing system:
Due date of filing GSTR-3B return is 20th of the next month. For instance, the 3B return for the month of March can be filed anytime before April 20, and similarly, the 3B return for the month of February can be filed anytime before March 20.
Taxpayers with an annual turnover that amounts to Rs. 1.5 crore or less are obligated to file their GSTR-1 returns quarterly. The due date for such taxpayers is 30th of the month following the end of respective quarter. For the March (Jan 1 to March 31) quarter, for instance, the deadline would be 30th of April.
Those with a turnover of Rs. 1.5 crore and above are meant to file monthly returns of GSTR-1. The deadline for monthly return is 10th of the month that comes two months after the end of respective month. For instance, the GSTR-1 return for the month of January can be filed by March 10. Likewise, returns for the months of February and March can be filed by April 10 and May 10.
II. Reverse Charge Mechanism:
Tax payable under Reverse Charge Mechanism (RCM) under section 9(4) of the CGST Act, 2017 was deferred up to 31.03.2018 vide Notification No. 38/2017 - Central Tax (Rate) dated 13th October, 2017. Liability to pay tax ha been further deferred till 30.06.2018 and a Group of Ministers will look in to the modalities and ensure smooth implementation without causing inconvenience to Trade and Commerce.
III. TDS / TCS
The provisions for deduction of tax at source (TDS) under section 51 of the CGST Act and collection of tax at source (TCS) under section 52 of the CGST Act shall remain suspended till 30.06.2018. In the meantime, the modalities of linking State and Central Governments accounting system with GSTN will be worked out so that seamless credit is available to the registered traders whose tax is deducted or collected at source.
IV. Grievance Redressal Mechanism
GST implementation Committee (GIC) has been tasked with the work of redressing the grievances caused to the taxpayers arising out of IT glitches.
V. Tax exemptions for exporters extended for six months
The Council has decided to extend the available tax exemptions on imported goods for a further 6 months beyond 31.03.2018. Thus, exporters presently availing various export promotion schemes can now continue to avail such exemptions on their imports up to 01.10.2018, by which time an e-Wallet scheme is expected to be in place to continue the benefits in future.
VI. Introduction of E-way Bill
The GST Council has recommended the introduction of e-way bill for inter-State movement of goods across the country from 1st April 2018. E-way bill for intra-State movement of goods will be introduced latest by 1st June, 2018 in a phased manner. [A separate detailed analysis on e-way bill will be shared later on]
VII. Data Analytics and it’s outcome
Data analytics has been carried out by CBEC and GSTN based on available data and the GST Council has noted the preliminary observation which are as follows:
- It has emerged that there is variance between the amount of IGST & Compensation Cess paid by importers at Customs ports and input tax credit of the same claimed in GSTR-3B.
- There are major data gaps between self-declared liability in FORM GSTR-1 and FORM GSTR-3B.
It was deliberated that this information may be further analyzed and adequate action may be initiated accordingly.