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GST Council decides to reduce tax rates on many items; allows ITC for last FY; single window for refund & amendments in GSTR-9 & 9C

Published: Dec 22, 2018

By TIOL News Service

NEW DELHI, DEC 22, 2018: AT the 31st meeting the GST Council has shown the resolve to bring the GST caravan back on rail! It has taken a series of taxpayer-friendly decisions besides rationalising the tax rate on a good number of goods falling in the 28% tax bracket. The Council has decided to reduce tax rate from 28% to 18% on many items such as Monitor TV, Power Bank Battery, cranks & gear boxes, video camera & used tyres of rubber and from 12% to 5% on items like fly ash block, walking stick and nil tax rate music books. Services of business correspondent to a bank have been brought under the sweep of RCM. The Council has decided to tax the Executive Court but exempt diploma and degree programmes run by the IIMs. Tax rate on Haj travel has been reduced to 5%. The tax rate on cinema tickets costing less than Rs 100 has been reduced to 12% but will remain 18% on above Rs 100/-.

In a mega relief to the taxpayers, the Council has allowed ITC on invoices or debit notes issues for the FY 2017-18 upto the date of annual return - GSTR-9. Besides, allowing the extension of the due dates for GSTR-9 & 9C upto March 31, 2019, the Council has also approved many changes in the tables seeking details of HSN Code for inward supplies; additional payments to be paid only in cash; value of non-GST supply to include the value of 'no supply' and many more.

The Council also okayed the proposal for Single Interface for disbursal of refund, rationalisation of cash ledgers, extension of due dates for migration of taxpayers & GSTR-8 by e-commerce operators.

The Council also approved the amendment in Section 50 of the CGST Act to allow payment of interest on net cash liability. In case of delayed furnishing of GSTRs, the late fee has also been reduced. However, the Council has taken a view on the proposal to deny generation of e-Way Bills if returns not filed for two consecutive tax periods.

For the new GST Return format the Council has put its stamp for a trial run from April 1, 2019 and mandatory filing from July 1, 2019. Rule 46 amendment has been approved for allowing computer-generated invoices without digital signature. In addition, the Council has also approved several clarifications relating to export of services, FAQ on banking, penalty and ITC.