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Some key updates of 27th GST Council meeting held on 4th May 2018

1. GSTN Ownership Changing:

Change in the Shareholding Pattern of GSTN: Currently 24.5% held by Central and States Governements each, Balance 51% by Non-Govt Institutions. In New System Central and State Governements will hold 50% Shares Each and GSTN will be 100% Govt Owned Company.
Hope that changing of ownership of GSTN will also improve operational style of GSTN.

2. Return Simplification:

  • GST Council decided to make one Single GST return for month.
  • Except few categories like Composite Dealers, there would be One Monthly Return for all taxpayers. (Currently there are GSTR1, 2 and 3 under Law and GSTR1 and 3B as in existence).
  • Simply avail ITC (Input Tax Credit) based on Invoices uploaded by Supplier (B2B Transactions).
  • Uploaded Invoices should be in HSN level. (Four Digits or More).
  • User Friendly IT Interface. System will calculate tax liability after adjusting ITC Available.
  • Automatic Reversal of ITC, Only in Exceptional Cases. In case of non-payment of tax recovery will be made from Supplier only). In case of Default Taxpayers, their account will be blocked for uploading Invoices, to stop misuse of ITC. It required amendment of Section 16 of CGST/SGST act). Expected time for implementation of new changes may be by Dec’18. Taxpayer seeks clarification that suppose Invoice uploaded by vendor but is not belong to firm then it will problem to match the ITC as per books of Accounts and GST returns. Second concern is that after the completing returns and making payment by taxpayer some of vendor uploaded removed or reduce the value of sales invoices.

3. Concession on Digital Transactions:

In a bid to Digital India Concept of Government, GST council proposed a concession of 2% (Where GST rate is 3% or more) for B2C Transactions (1% SGST+1%CGST) with ceiling of Rs. 100/- per transaction to promote Digital Transactions.(Cheque/Online Payments).

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One thought on “Snippet of 27th GST Council Meeting

  1. Satbir says:

    thanks for sharing Knowledge

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