GST Council Meeting passes without any expected rate hikes

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Lotteries run by State and State authorised entities, will be subjected to 28% GST effective from 1 March 2020.

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Presently, the upfront amount payable for long term lease of industrial / financial infrastructure plots was exempt to an entity having 50% or more ownership of Central or State Government. However, the Council has recommended to expand the exemption to apply even in case of lease of such plots by entities having 20% or more ownership of Central / State Government. This shall be effective from 1 January 2020.

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The Council has recommended the formation of a Grievance Redressal Committees (GRC) at Zonal/State level with the jurisdictional officers that will address the grievances of the taxpayer.

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The due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR 9C for FY 2017-18 has been extended till 31 January 2020.

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The due date of filing GST returns for the month of November 2019 has been extended in respect of a few North Eastern States.

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In order to improve filing of FORM GSTR-1, certain measures have been proposed, including, waiver of late fee in respect of pending FROM GSTR-1 for the period July 2017 to November 2019. There is also a recommendation to block E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods.

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Measures in the form of blocking of fraudulent availment of input tax credit are recommended in order to check the menace of fake invoices.

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Input tax credit in respect of invoices or debit notes that are not reflected in FORM GSTR-2A is proposed to be limited to 10% of the eligible credit available in respect of invoices or debit notes reflected in FORM GSTR-2A. This marks a reduction in the permitted credit from 20% to 10% of the unmatched credit.