GST Amendments 2019

GST Amendments 2019

GST Amendments 2019

The year 2019 witnessed some major changes in the Goods and Services Tax (GST). The GST Council conducted 7 meetings this year and took several important decisions concerning the GST rates, date of filing GST returns, exemption from GST rates and others. This article highlights the major amendments in GST in the year 2019. 

32nd GST Council Meeting

  • The 32nd GST Council meeting was held on 10th January 2019 where the majority of decisions taken by the Council revolved around providing relief to the MSME sector (including small traders). 

  • The Council decided to increase the Annual Turnover limit to Rs 1.5 Crore to avail Composition Scheme for Goods. 

  • The Council also simplified compliance under the Composition Scheme by allowing the MSME sector to file an annual return only once.

  • Two Threshold Limits Rs 40 lakhs and Rs 20 Lakhs were introduced for exemption from Registration and Payment of GST for the suppliers of Goods. States had to choose one limit.

  •  It was decided that a Composition scheme shall be made for Suppliers of Services with 3% CGST and 3% SGST who have an Annual Turnover in the preceding Financial Year up to Rs 50 lakhs. 

33rd GST Council Meeting

The 33rd GST Council Meeting held on 24th February 2019, laid special focus on enhancing the Real estate sector in India. The Council decided that a GST rate of 5% without ITC would be levied on residential properties that are not easily affordable and 1% without ITC on affordable housing properties.

34th GST Council Meeting

  • The 34th GST Council meeting was held to discuss the implementation of decisions taken by the Council in its 33rd meeting. 

  • The GST Council decided to give a one-time option to the promoters to pay tax at the old rates i.e, at a rate of 8% or 12% with ITC on ongoing projects. 

  • Also, the new housing tax rates were subjected to conditions that no input tax credit will be available to the taxpayers and that 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, and long term lease (premiums) shall be purchased from registered persons.

35th GST Council Meeting

  • The 35th GST Council meeting held on 21st June 2019 made recommendations to introduce a new tax return system for the taxpayers. 

  • From July 2019 to September 2019, the new return system was available as a trial and the taxpayers were supposed to continue filing FORM GSTR-1&FORM GSTR-3B. From October 2019, FORM GST ANX-1 was made compulsory and the small taxpayers were recommended to stop filing Form GSTR-3B and instead file Form GST PMT-08

  • The GST Council decided that Form GSTR-3B will be completely phased out from January 2020.

36th GST Council Meeting

  • The GST Council held its 36th meeting on 27th July 2019 where the Council recommended the reduction in GST rates on electric vehicles from 12% to 5% and on charging stations for electric vehicles from 18% to 5%. 

  • Hiring of electric buses by local authorities was exempted from GST. These changes have come into effect from 1st August 2019.

37th GST Council Meeting

  • The 37th meeting of the GST Council was held in Goa on 20th September 2019. In this meeting, the Council recommended certain law and procedure-related changes in GST. 

  • The Council relaxed the filing of annual returns for the financial year 2018-19 by waiving off the requirement of filing Form GSTR-9A for the composition taxpayers and by making Form GSTR-9 optional for the taxpayers having aggregate turnover up to Rs. 2 Crore. 

  • The Council decided to impose restrictions on the availability of input tax credit under section 37 of the CGST Act, 2017 so that the taxpayers may file their statement of outward supplies timely.

  • A new return system will be introduced from April 2020 to allow the taxpayers to adapt to the system. The Council also decided to issue circulars for uniformity in application of law across all jurisdiction.

38th GST Council Meeting

  • The GST Council held its 38th meeting on 18th December 2019 in New Delhi headed by the UnionFinance Minister Nirmala Sitharaman. During the meeting, the Council fixed tax rate on lotteries discussed annual return filing dates, penalty and ITC related provisions and proposed certain other changes in GST.

  • The GST Council decided to levy a uniform tax of 28% on both state-run and state-authorised lotteries.

  • The due date of annual return form GSTR-9 and GSTR-9C till 31 January 2020 from the earlier date of 31 December 2019 for FY 2017-18.

  • For north-eastern states, the due date for filing GST returns for the month of November 2019 has been extended till 31 st December 2019.

  • The GST Council has decided to restrict the amount of Input Tax Credit from 20% to 10% in cases where the invoices or debit notes have not been uploaded.

  • The GST Council has decided to remove the inverted tax structure by increasing the GST rate on bags belonging to HSN code 3923/6305 from 12% to 18%.

  • The industrial or financial infrastructure plots on long-term lease are exempted from paying GST. For this exemption, the Central or State Government shall hold more than 20% ownership and not 50% as specified earlier.

  • A Standard Operating Procedure (SOP) will be defined for tax officers in cases where GSTR- 3B has not been filed.

  • The GST Council proposed setting up of grievance redressal units at Zonal or State levels to address the issues or grievances of the taxpayers.

Other Changes

  • Section 49A has been inserted in the GST Act to amend the manner of utilization of ITC. IGST credit is to be utilized for the payment of IGST, CGST, SGST and UTGST.

  • The reverse charge under Sec 9(4) of the GST Act was earlier applicable on purchases made by a registered person from an unregistered person. This is now applicable to a specific class only. 

  • Under Section 52 of the GST Act, 2017 only e-commerce operators that collect tax at source must compulsorily obtain GST registration.

  • Businesses can now obtain multiple GST registrations within the same state for each place of business.

  • Consolidated debit/credit note can be issued in respect of multiple invoices issued in a financial year rather than a single note for each invoice.

  • According to section 10 of CGST Act, 2017, the composite dealers can supply services exceeding 10% of the turnover in the preceding financial year.

  •  Banks, financial institutions and NBFCs can avail 50% of the eligible input tax credit on inputs, capital goods and input services. 

During the year 2019, the GST Council made some major decisions regarding GST and proposed numerous recommendations. The Council also recommended setting up of committees for specific purposes as well as grievance redressal zones at Zonal or State level.


eStartIndia Team

Leave a Comment

Previous Comments

Related Blogs