Heading:- Key outcomes of 26th GST Council meeting-
Key outcomes of 26th GST Council meeting -
The all-powerful GST Council meeting headed by the Hon'ble Finance Minister, Mr. Arun Jaitley held for the 26th time with an agenda inter-alia, to take up issues pertaining to simplification of return filing under GST, implementation of E-way bill, disbursal of refund to exporters & defer Reverse Charge Mechanism. With the conclusion of the 26th GST Council meet on March 10, 2018, the gist of the key takeaways from the meeting are as under:
Return filing System
The present system of filing of GSTR 3B and GSTR 1 is extended for another three months i.e., April to June, 2018 till the new return system is finalized. A new model was discussed extensively and Group of Ministers on IT has been tasked to finalize the same.
Reverse charge mechanism:
The liability to pay tax on reverse charge has been further postponed by three months i.e. till 30.06.2018. In the meanwhile, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade and industry.
The TDS/TCS mechanism has also been postponed 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.
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.
Extension of Tax Exemption for Exporters for 6 months:
Extension of the continuation of the exemptions under the export promotion schemes will be continued on the imports of the exporters till 1 October 2018, and it is expected that in such time e-wallet scheme is expected to be in place to continue the benefit in the future.
Recommendations on E-way Bill:
E-way bill shall be introduced for all Inter-State movement of goods, consignment value exceeding Rupees fifty thousand, across the country from April 01, 2018. For intra-State movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in a phased manner but not later than June 01, 2018.
Recommendations regarding Data Analytics:
GST Council has been apprised of the fact that CBEC and GSTN have started detailed data analytics across a number of data sets available with them. The outcome of preliminary data analysis has revealed interesting insights:
- 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 analysed and adequate action may be initiated accordingly.
GST Rates: No GST rate changes announced in this meeting.