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5th January 2019

Gist of amendments applicable in GST after 31st GST Council Meeting.

  Recently, the GST Council has recommended several changes in its 31st meeting concluded on 22nd December, 2018 at New Delhi. The changes recommended by GST council have been notified by the Ministry of Finance vide issuance of various notifications on 31st December, 2018. Summary of all notifications are given below:

  1. Changes in Returns and extensions

Notification no. 74/2018 - Updates have been made in Form GSTR-9, GSTR-9A and GSTR-9C to incorporate recommendations made in the GST council meeting. Major changes include - furnishing details of outward supplies made during the year instead of supplies declared in returns filed during the year and payment of liability in Form DRC-03.

Notification no. 75/2018 - Waiver of late fee for delay in furnishing of GSTR-1 for the months/quarters from July, 2017 to September, 2018, if furnished between the period from 22nd December, 2018 to 31st March, 2019.

Notification no. 76/2018 - Waiver of late fee for furnishing GSTR-3B for the month of July, 2017 to September, 2018, if furnished between the period from 22nd December, 2018 to 31st March, 2019.

Notification no. 77/2018 - Waiver of late fee for composition dealer furnishing GSTR-4 from quarter July, 2017 to September, 2018 furnishing return between 22nd December, 2018 to 31st March, 2019.

Notification no. 78/2018 - The due date to furnish GST ITC-04 (for the goods dispatched to a job worker or received back from job worker) from the period July,2017 to December, 2018 extended till 31st March 2019.

Order No. 02/2018-Central Tax - ITC in relation to any invoice or debit note relating to the invoices issued during the F.Y. 2017-18 can be availed by recipient till due date of furnishing GSTR-3B of September' 2018. It has been extended to due date of furnishing GSTR-3B of March'2019. Also, the order specified that the rectification of error or omission in respect of details furnished GSTR-1 shall be allowed after furnishing of return under GSTR-3B for the month of September, 2018 till the due date for furnishing the details in FORM GSTR-1 for the month of March, 2019 or for the quarter ending January, 2019 extended to March, 2019.

Order No. 03/2018-Central Tax - The CBIC has further extended the due limit for furnishing the annual return in FORM GSTR-9 (for normal taxpayers), FORM GSTR-9A (for composition taxpayers) and reconciliation statement in FORM GSTR-9C for the F.Y. 2017-18 till 30th June, 2019 from earlier date of 31st March 2019.

Order No. 04/2018-Central Tax - The CBIC has extended the time limit for furnishing the return in FORM GSTR-8. The due date for furnishing FORM GSTR-8 for the months of October, November and December, 2018 is 31st January, 2019.

  1. Changes related to migration of specified persons

Notification No. 67/2018 - The Central Govt has specified a special procedure for migration of persons to GST who did not file the complete GST REG-26 but only received a provisional ID till 31st December'17. They are required to furnish details specified in Notification no. 31/2018-Central Tax for the purpose of migration. The date for filing such documents has now been extended up to 31st January'2019. Also, upon receipt of the GSTIN such assessee is also required to furnish by e-mail the new GSTIN along with ARN and old GSTIN to migration@gstn.org.in. The date for such email has now been extended up to 28th February' 2018.

Notification no. 68/2018, 69/2018 and 70/2018 - For the taxpayers newly migrated via special procedure, the due date for filing GSTR-3B has now been extended till 31st Mar'18 for the period July to February' 19.

Notification No. 71/2018 - For the taxpayers newly migrated via special procedure whose turnover does not exceed 1.5 Crore, the due date for filing GSTR-1 has now been extended till 31st March'18 for the period July'17 to December'18.

Notification No. 72/2018 - For the taxpayers newly migrated via special procedure whose turnover exceed 1.5 Crore, the due date for filing GSTR-1 has now been extended till 31st March'18 for the period July'17 to February'19.

  1. Changes related to Rates A. GST on Solar Power Generating Plant and other renewable energy devices

GST rate of 5 % rate has been prescribed under NN 1/2017-CT(rate), on renewable energy devices & parts for their manufacture (bio gas plant/solar power-based devices, solar power generating system (SGPS) etc.) (falling under chapter 84, 85 or 94). Other goods or services used in these plants attract applicable GST.

However, the Central Government vide NN. 24/2018-CT (rate) dated 31st December, 2018 has provided that 70 per cent of the gross value charged would be deemed as the value of supply of the said goods attracting 5% GST rate and remaining portion (30 per cent) of the gross consideration charged shall be deemed as the value of supply of taxable service attracting rate of 18%.

  1. GST rates of several services
The Central Government vide Notification No. 27/2018 - Central Tax (Rate) has changed CGST rate of several services. The similar clarification in the IGST rates of services have been provided vide NN 28/2018-IT(rate). The list of services whose rates have been revised are provided below-
S. No.
Description of service
New rates
Air travel of services to pilgrims provided by non-scheduled/ charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangement.
Provided No ITC on goods used for providing such services shall be allowed.
2.5
Service of third-party insurance of 'goods carriage'
6
Admission to exhibition cinematograph films where
  • price of tickets is above Rs. 100 and
  • price of tickets is Rs. 100 or less
9
6
Construction, engineering or installation or other technical services provided in relation to setting up of following:
  1. Bio-gas plant
  2. Solar power-based devices
  3. Solar power generating system
  4. Wind mills, Wind Operated Electricity Generator (WOEG)
  5. Waste to energy plants / devices
  6. Ocean waves/tidal waves energy devices/plants
9
Services of leasing and renting of goods
Same rate of CGST as applicable on supply of like goods involving transfer of title of goods
  1. Changes related to Exemptions
Notification No. 28/2018 - Central Tax (rate) has been issued to amend Notification No. 12/2017-CT (rate) which provides list of services exempted from payment of whole of GST under the CGST Act, 2017. The similar exemptions from payment of IGST have been provided vide NN 29/2018-IT (rate). The exemptions are given below:
  1. New exemptions
  1. Services provided by Goods transport agency to Government departments, local authorities or government agencies, which have taken registration under GST regime only for the purpose of deducting tax at source u/s 51 and not for making  taxable supplies of goods or services. (Entry 21B)
  2. Services by Banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana. (Entry 27A)
  3. Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 by way of rehabilitation, therapy or counselling and other such activity at medical establishments, educational institutions, rehabilitation centers established by Central Government / State Government or Union Territories or entity registered under section 12AA of the Income-tax Act.
  1. Scope of exemption widened
Exemption on services provided by Central or State Government or Union Territory Government to their undertakings or PSUs by way of guaranteeing loans taken by them from financial institutions is being extended to guaranteeing of such loans taken from banking companies. (Entry 34A)
  1. Exemption withdrawn
Exemption available on services provided by the Indian Institutes of Management (IIMs) to their students by way of certain educational programmes specified under Entry 67 shall be withdrawn.
  1. Changes related to Reverse Charge Mechanism (RCM)
The Central Government vide Notification No. 29/2018-Central Tax (Rate), has amended Notification No. 13/2017-Central Tax (rate), which provides list of services on which CGST shall be paid under reverse charge basis by the recipient of such services. The similar amendment has been provided for payment of IGST on RCM vide NN 30/2018-IT (rate).
  1. Services provided by the Goods Transport Agency (GTA) for transportation of goods to Government departments, local authorities or governmental agencies which have taken registration under GST regime only for deducting tax at source u/s 51 shall be excluded from payment of tax under Reverse charge mechanism.
  2. Services by business facilitator to banking companies in the taxable territory shall be covered under RCM.
  3. Services by agent of Business correspondent to business correspondent in the taxable territory shall be covered under RCM.
  4. Security services (supply of security personnel) provided to a registered person shall be put under RCM, except when provided to,
  • Government Departments, local authority or governmental agencies  which have taken registration only for deducting TDS and not for making taxable supplies and
  • Entities registered in composition scheme u/s 10.
  1. Parliament and State legislatures shall be extended the same tax treatment as available to Central and State Governments, with regard to payment of tax under RCM.
  1. Miscellaneous
Notification no. 73/2018 - Exemption from deduction of TDS in case goods/services are supplied by one person having TDS registration to another person having TDS registration.
Notification no. 74/2018 - Various changes are made in CGST Rules to give effect to recommendations made in the GST council meeting and to rationalize some other provisions as well.
Notification no. 79/2018 - Seeks to amend notification No. 2/2017 - CT dated 19.06.2017 to expand jurisdiction of officers in certain cases assigned by CBIC.