27th GST Council Meeting: Five Things To Know

 

So 27th GST council meeting is over now. These are the very much anticipated changes- Five Things To Know

1. Monthly Return: Taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have the facility to file quarterly return.

2. Unidirectional Flow of invoices: There shall be unidirectional flow of invoices uploaded by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. The buyer would also be able to continuously see the uploaded invoices during the month.

3. Simple Return design and easy IT interface: The B2B dealers will have to fill invoice-wise details of the outward supply made by them, based on which the system will automatically calculate his tax liability. The input tax credit will be calculated automatically by the system based on invoices uploaded by his sellers. The taxpayer shall be also given user-friendly IT interface and offline IT tool to upload the invoices.

4: Proposal of concession on digital transactions: Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate (where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates) on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction, so as to incentivise promotion of digital payment.

5. The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.

6. Cess on Sugar above 5% GST rate: The council deliberated over the imposition of cess on sugar over and above 5% GST and also over the reduction in GST rate on ethanol. Keeping in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and reduction in GST rate on ethanol in great detail. The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.

Press Release:

  1. CBIC Press Release dt 04.05.2018 on -Changes in GST Rates

  2. CBIC Press Release dt 04.05.2018 on Return Simplification

  3. CBIC Press Release dt 04.05.2018 on GSTN


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1 Comment on "27th GST Council Meeting: Five Things To Know"

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Arun19992
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Proposal of concession on digital transactions?
when will start?