Live Updates of 35th GST Council Meeting
The 35th GST Council meeting otherwise referred to as the 1st GST Council meeting of Modi 2.0 Government, is being chaired by the new Finance Minister of India Smt. Nirmala Sitharaman.
It has sought to bring solutions to major issues related to-
- GST tax evasion,
- GST reductions in cases of electric vehicles,
- GST invoicing on the Government portal,
- Synchronization of the E-way bill system with NHAI’s FASTag mechanism
- New GST return filing model.
Besides, the 35th GST Council meet has given a hint towards the future plan of inclusion of petrol, natural gas, and alcohol under the purview of GST. this will surely benefit the consumers as well as the traders having GST registration.
Let’s focus on key insights of the 35th GST Council meeting.
#1. Approval of new GST Return filing format
The GST Council has already decided to bring the new GST return filing system on a trial basis with effect from July 2019. In order to ease the transition to the new return system, a transition plan has been worked out. This would include 3 basic kinds of GST returns:-
- Normal: GST Ret-1
- Sahaj: GST Ret-2 and
- Sugam: GST Ret-3
In order to cope with the big challenge for the taxpayers having GST registration to migrate to the new GST return filing system, a transition plan to the new GST return filing system has also been worked out. This transition plan will be effective from July to September 2019, after which the new GST return filing system will be made effective nationwide.
Know more about the transition plan to new GST return filing.
#2. GST invoicing on the Government portal
GST council had decided to introduce an Accounting & Billing Software on GST portal for businesses having GST registration with annual turnover up to â‚¹1.5 crore. This software is for B2B e-invoicing for entities having a turnover exceeding. However, the threshold limit for eligibility for this Billing Software is still doubtful.
Nevertheless, you can instantly raise the GST Tax Invoice through the interactive and fast InstaBill Software.
#3. Reduction in the GST on electric vehicles.
The GST council is most likely to make GST rate cuts on electric vehicles from 12% to 5%.
- This would be done in order to boost the sales of such vehicles, as a part of the government’s drive towards energy conservation and environmental management.
- In this regard, the government is also likely to reduce GST on electric chargers of these vehicles from 28% to 18%.
- Besides, GST on Hybrid vehicles can also be reduced.
#4. Integration of E-way Bill with NHAI Fast-Tag mechanism.
GST council is also likely to decide on the Synchronization E-way bill system with NHAI FastTag mechanism.
- Under this mechanism, E-way bills would be checked via Radio Frequency Identification Device (RFID) tagging.
- This would help keep a check on unaccounted consignments moving in India, which would prevent ill-practices like smuggling and GST evasion.
- However, there is a long time for the mechanism to be made effective nationwide.
- After the GST meeting, GST Commissioners may, vide notification, require a class of transporters to get the unique RFID device and get it embedded on to the vehicle. This will map the e-way bill to RFID prior to the movement of goods.
#5. GST on Extra-Neutral alcohol.
Very surprisingly, the GST council is likely to bring extra-neutral alcohol (ENA) under GST ambit. ENA refers to food-grade alcohol that is used in making alcoholic beverages such as whiskey, gin, wine, scotch, liquor, etc.
These are a few decisions that might be taken at the 35th GST Council meeting.
If you require any further help regarding GST registration, or new GST return filing procedure, feel free to contact our business advisor at 8881-069-069.
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