HIGHLIGHTS OF GST COUNCIL MEETING HELD

In its 26th meeting, Arun Jaitley-chaired GST Council (Goods & Services Tax) extended the existing system of filing returns (GSTR-3B and GSTR 1) by another three months till June and …..

Following Major Decisions Were Taken

The present system of filing GSTR 3B and GSTR 1

The present system of filing GSTR 3B and GSTR 1 is extended for three months till June 2018 till the new return system is finalized. A new model was discussed extensively and a group of ministers on IT has been tasked to finalize the same.

Tax exemptions for exporters extended

exporters presently availing various export promotion schemes can now continue to avail such exemptions on their imports up to October 1.

E-Way Bill From April 1

The GST Council has recommended the introduction of an e-way bill for inter-State movement of goods across the country from 01st April 2018. For the intra-State movement of goods, the e-way bill system will be introduced w.e.f. a date to be announced in a phased manner but not later than 01^st June 2018.

Deduction of TDS/TCS deferred

Tax Deducted at Source (TDS) and Tax Collection at Source (TCS) system, which involves linking the accounting system of both the central and state government, has been extended until June 30. The Provision for deduction of tax at source (TDS) under section 51 of the CGST Act and collection of tax at source under section 52 of the CGST Act shall remain suspended till June 30

Reverse charge mechanism deferred

The liability to pay tax on a reverse charge basis has been deferred till June 30, 2018. In the meantime, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade and industry.

For redressing grievances

GST implementation committee has been tasked with the work of redressing the grievances caused to the taxpayers arising out of IT glitches.

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Interim relaxations to e-commerce

The requirement of e-commerce platforms to collect 1% tax at source from the final consumer and pass on the tax credit to the vendor using the e-commerce platform has been deferred until 30 June.

Special scheme for merchant exporter

For merchant exporters, a Special Scheme of payment of GST @ 0.1% on their procured goods was introduced.

Relief to exporters

Exporters will continue to benefit from the interim measure announced last October to ease their liquidity problems by way tax exemption on their raw materials under pre-GST schemes such as advance authorization (AA) and export promotion capital goods (EPCG). This relief, which was to expire by end of March, will now be available till 1 October. The pre-GST schemes are being continued as paying taxes first and seeking refunds later—the norm in GST—affects liquidity of the exporter.