GST UPDATES

35th Council Meeting

Year 2019
 Shah & Jhalawadia
Chartered Accountants

GST Updates
In 35th Meeting of council held on 21st June, 2019, various important decisions including
extension of due date of filling GSTR-9, 9A and 9C have been taken.

Based on this we have made a presentation with our own inputs wherever necessary.
This is for information only. For exact details of changes, the notification/Circular/
Clarification may please be referred to, as and when they are issued.

Disclaimer

Every effort has been made to avoid error or omissions in this presentation. In spite of
this, errors may creep in. It is notified that M/s Shah & Jhalawadia shall not be
responsible for any damage or loss of action to any one, of any kind, in any manner there
from. It is suggested that to avoid any doubt the reader should cross-check all the facts,
law and contents of the publication with original Government publication or notification.

No part of this presentation may be reproduced or copied in any form or by any

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other information storage device, etc., without the written permission of the M/s Shah &
Jhalawadia. Breach of this condition is liable for legal action.
 Shah & Jhalawadia
Chartered Accountants

Index

Sr Details Page
No No
New Return System to be introduced in phased manner
1 1
2 Due dates of certain forms (including GSTR-9 & 9C) proposed to be 3
extended

3 Implementation of decisions taken in earlier meeting 3

4 Blocking of E-way Bill for non filling of returns now w.e.f 21.08.2019 4

5 Decision on rate change for Electrical Vehicles 4

6 Decision on rate change for Solar Power Plant and Wind Turbines 4

7 Decision on rate change for Lottery 5

8 Decision regarding GST Appellate Tribunal 6

9 Tenure of National Anti-Profiteering Authority (NAA) extended 6

10 Decision to introduce E-Invoicing 6

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Chartered Accountants

1. New Return System to be introduced in phased manner

➢ Following Forms have already been prescribed by CBIC for new GST Return system

Sr FORM No Description of form

No
1 GST ANX-1 Annexure of outward supplies, imports and inward supplies attracting reverse
charge
2 GST ANX-2 Annexure of inward supplies
3 GST RET-1 Monthly/Quarterly (Normal) return
4 GST ANX -1A Amendment to FORM GST ANX-1
5 GST RET-1A Amendment to FORM GST RET-1
6 GST PMT-08 Payment of Self-Assessment tax

➢ Council has taken decision to implement this new return system as under
• Between July, 2019 to September, 2019, the new return system (FORM GST ANX-
1&FORMGST ANX-2 only) to be available for trial for taxpayers. Taxpayers to continue to file
FORMGSTR-1&FORM GSTR-3B as at present;
• Taxpayers are categorized as Large and Small and return filling system for then shall be
implemented as under

GST ANX-1
• Compulsory from October-2019.
• It will be filed on monthly basis

GSTR RET-1
• First RET-1 will be for December-19 , it will
be filed in Jan -2020

For Large Taxpayers

GSTR-3B
(means taxpayer having • Will continue to file up to Navember-2019
aggregate turnover more than
Rs 5 crores in previous year )

PMT-08
• First PMT-08 shall be filed for December-
19
• Means self assessment tax shall be paid in
form PMT-08 from December-19

CA Bhavesh Jhalawadia 1
 Shah & Jhalawadia
Chartered Accountants

GST ANX-1
• Compulsory from quarter October-to December
2019.
• It will be filed on quarterly basis

GSTR RET-1
For Small Taxpayers • First RET-1 will be for quarter October- to
December-19 , it will be filed in Jan -2020
(means taxpayer having
aggregate turnover not more
than Rs 5 crores in previous
year ) GSTR-3B
• Stop filling from October-2019

GST PMT-08

• First PMT-08 shall be filed for October-19

• Means self assessment tax shall be paid in form
PMT-08 from October-19

• It may be noted that invoices etc. can be uploaded in FORM GST ANX-1 on a continuous
basis both by large and small taxpayers from October, 2019 onwards. FORM GST ANX-2 may
be viewed simultaneously during this period but no action shall be allowed on such FORM
GST ANX-2;

CA Bhavesh Jhalawadia 2
 Shah & Jhalawadia
Chartered Accountants

2. Due dates of certain forms (including GSTR-9 & 9C) proposed to be extended

➢ On account of difficulties being faced by taxpayers in furnishing the annual returns and
reconciliation statement, due dates shall be extended as under. Due date for statement in relation
to job work also extended

Form Description of form Period Current Proposed

Due Date Due Date
GSTR-9 Annual Return 2017-18 30.06.2019 31.08.2019
(01-07-17 to
31-03-18)
GSTR-9A Annual Return (For Composition Taxpayer) 2017-18 30.06.2019 31.08.2019
(01-07-17 to
31-03-18)
GSTR-9C Reconciliation Statement 2017-18 30.06.2019 31.08.2019
(01-07-17 to
31-03-18)
GST ITC-04 Details of goods/capital goods sent to job 01-07-17 to 30.06.2019 31.08.2019
worker and received back 31-03-19
GST CMP- Intimation to pay tax under Notification 2019-20 30.04.2019 31.07.2019
02 02/2019- Central Tax (Rate)

(Note-This form is for intimation to pay tax

under Section-10 (Composition Levy). This
same form to be used to pay tax under
Notification 02/2019 –Central Tax (Rate)
also)

(Note- Notification 02/2019 –Central Tax

(Rate) is for grating option to pay tax @6%
for intra-state supply of goods or services of
up to Rs 50 lakhs)

3. Implementation of decisions taken in earlier meeting

➢ Certain amendments to be carried out in the GST laws to implement the decisions of the GST
Council taken in earlier meeting

CA Bhavesh Jhalawadia 3
 Shah & Jhalawadia
Chartered Accountants

4. Blocking of E-way Bill for non filling of returns now w.e.f 21.08.2019

➢ Rule 138E of the CGST rules, pertaining to blocking of e-way bills on non-filing of returns for two
consecutive tax periods, to be brought into effect from 21.08.2019, instead of the earlier notified
date of 21.06.2019

5. Decision on rate change for Electrical Vehicles

➢ On issues relating to GST concessions on electric vehicle, charger and hiring of electric vehicle, the
Council recommended that the issue be examined in detail by the Fitment Committee and brought
before the Council in the next meeting.
➢ At present GST rate is 12% for Electrical Vehicles and 18% for charger of Electrical Vehicles

6. Decision on rate change for Solar Power Plant and Wind Turbines
1. Jurisdiction of Joint Commissioner (Appeals) is defined

I Decision of Council Meeting

In terms of order of the Hon’ble High Court of Delhi, GST Council directed that the issue related to
valuation of goods and services in a solar power generating system and wind turbine be placed
before next Fitment Committee. The recommendations of the Fitment Committee would be placed
before the next GST Council meeting.

II Current Scenario in this industry

➢ GST rate of 5% rate has been prescribed on renewable energy devices & parts [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 had arisen regarding GST rates where specified goods attracting 5% GST are
supplied along with services of construction etc for solar power plant.
➢ To resolve the dispute explanation had been inserted in Sr 234 of Schedule I of the Notification
01/2017 Central Tax (Rate) by Notification 24/2018 Central Tax (Rate) dated 31.12.2018 as under

“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.”

CA Bhavesh Jhalawadia 4
 Shah & Jhalawadia
Chartered Accountants

As well following explanation inserted in Sr No 38 of Principle Notification 11/2017 Central Tax

(Rate) by Notification 27/2018 Central Tax (Rates) dated 31.12.2018

“This entry shall be read in conjunction with serial number 234 of Schedule I of the notification
No. 1/2017-Central Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i) dated 28th June, 2017 vide GSR number 673(E) dated 28th June, 2017.

➢ In short at present, in the case of EPC contract for solar power plant 5% GST is paid on 70% of
Gross Value (assuming that 70% constitutes Renewable Energy Devises etc for solar power
plant) and 18% GST is paid on 30% of Gross Value (assuming that 30% constitutes service
portion)

III Writ was filed by the Solar Power Development Association.

Due to divergent rulings by the Advance Ruling Authorities added to the confusion and a writ was
filed by the Solar Power Development Association in Delhi High Court

As well as industry argued that the ad-hoc valuation did not provide a fair estimate of the actual
split of goods and services. Typically, the said ratio in the solar sector is 90:10, the industry argues.
(Means 90% is Renewable Energy Devises etc for solar power plant and only 10% is service
portion)

IV Direction of Delhi High Court.

The Delhi High Court had in April directed the government to review the tax structure for solar
power projects. Accordingly GST council has taken decision in this meeting for revised tax structure
in this industry.

7. Decision on rate change for Lottery

2. Jurisdiction of Joint Commissioner (Appeals) is defined

I Recommendation of Council in this Meeting

➢ Group of Ministers (GoM) on Lottery submitted report to the Council.

➢ After deliberations on the various issues on rate of lottery, the Council recommended that
certain issues relating to taxation (rates and destination principle) would require legal opinion of
Learned Attorney General.

II Outcome of 32nd Meeting of GST Council

➢ In pursuance of decision in the 32nd Meeting of GST Council held on 10th January, 2019 at New
Delhi, a Group of Ministers (GoM) on issues relating to lottery had been constituted led by by
Maharashtra Finance Minister Sudhir Mungantiwar,

CA Bhavesh Jhalawadia 5
 Shah & Jhalawadia
Chartered Accountants

➢ This GOM has favored a uniform GST rate of 18 per cent or 28 per cent on state-sponsored and
state-authorized lotteries.

8. Decision regarding GST Appellate Tribunal

3. Jurisdiction of Joint Commissioner (Appeals) is defined
➢ The Council took a decision regarding location of the State and the Area Benches for the Goods and
Services Tax Appellate Tribunal (GSTAT) for various States and the Union Territories with legislature.
It has been decided to have a common State Bench for the States of Sikkim, Nagaland, Manipur and
Arunachal Pradesh.

9. Tenure of National Anti-Profiteering Authority (NAA) extended

4. Jurisdiction of Joint Commissioner (Appeals) is defined
I Decision of council
The tenure of National Anti-Profiteering Authority has been extended by 2 years.

II Reason for such extension

The NAA Chairman B N Sharma has informally asked for an extension due to pending cases. The
Council has asked the NAA for data on the number of orders passed and the status of pending cases
to come to a decision on extension. “There were two views. One was that the NAA should get a
finite extension with a fixed timeline to clear cases, as was the objective initially. The other view is
that the NAA may be needed for a longer time as certain items like petroleum and alcohol are yet to
be brought under the GST ambit.
According to the anti-profiteering rules under GST, “benefits of input-tax credit should have been
passed on to recipients by way of commensurate reduction in prices”. The authority is still catering
to complaints related to the rate reductions made in July last year on a number of consumer
durables and on 178 items in November 2017.

10. Decision to introduce E-Invoicing

5. Jurisdiction of Joint Commissioner (Appeals) is defined
➢ The Council also decided to introduce electronic invoicing system in a phase-wise manner for B2B
transactions. E-invoicing is a rapidly expanding technology which would help taxpayers in backward
integration and automation of tax relevant processes

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 Shah & Jhalawadia
Chartered Accountants

Shah & Jhalawadia

Chartered Accountants

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