Update from the 27th GST Council Meeting
The GST Council held its 27th meeting today through video conferencing. The agenda items were limited today and the meeting was concluded by afternoon. The key decisions made in today’s meeting are as follows.
– One monthly return for all taxpayers excluding a few exceptions, Composition supplier and suppliers having nil transaction to file quarterly returns
– Invoices shall be uploaded only by the supplier, and buyer shall be eligible to avail credit on basis of such uploaded invoices
– New system shall be implemented in 3 stages:
Stage I – Present system to continue for a period not exceeding 6 months to allow GSTN to prepare the changes in software.
Stage II – Invoice upload facility to be made available to supplier, provisional credit to be allowed to buyer for missing invoices.
Stage III – Provisional credit will not be allowed anymore and credit of only invoices which have been uploaded would be available.
– The Council also proposed staggered due dates of filing of returns to manage the load on the IT system.
The staggered approach of implementation is a welcome step allowing businesses and GSTN to cope up with the changes in a phased manner. The proposed system is not significantly different from the current system and should allow businesses to adapt more easily this time.
Other Significant changes
– GST Council has recommended 2% concession on GST rate (limited to Rs. 100 per transaction) on B2C transactions in case of payments made through banking channels.
– Imposition of Sugar cess has been deferred for the time being. Group of Ministers will be formed to examine the issue. It will also examine the reduction in GST rate of ethanol.
– Council also approved the buyout of 51% equity of GSTN from private hands to make GSTN a fully Government owned enterprise.