26th GST Council meeting held in New Delhi

On 10^th March 2018, the 26^th meeting of the GST Council was held at Vigyan Bhawan, New Delhi.

Recommendations on Data Analytics:

The GST council was informed that CBEC and GSTN have begun detailed data analytics on the available data sets. Outcomes of the preliminary data analysis are:

• There is difference in the amount of IGST & Compensation Cess paid by importers at Customs ports and input tax credit of the same claimed in GSTR-3B.
• There is great difference in self-declared liability in FORM GSTR-1 and FORM GSTR-3B.
• This information would be analysed in more detail and necessary action will be taken.

Return filing System:

• The present system of filing of GSTR 3B and GSTR 1 is extended for 3 more months: April to June, 2018 untill new return system is finalized.
• A new model was discussed. A Group of Ministers on IT have been asked to finalize the new system.

Reverse charge mechanism:

• Liability to pay tax on reverse charge basis has been deferred till 30.06.2018.
• A Group of Ministers will study the modalities of its implementation to prevent inconvenience in trade and industry

TDS/TCS:

• The provisions for deduction of tax at source (TDS) under section 51 of the CGST Act and collection of tax at source (TCS) under section 52 of the CGST Act will be suspended till 30.06.2018.
• Modalities of connecting State and Central Governments accounting system with GSTN will be looked into to ensure seamless credit is available to the registered traders whose tax is deducted or collected at source.

Grievance Redressal Mechanism:

• GST implementation Committee (GIC) will work on redressing the grievances caused to the taxpayers due to IT glitches.

e-Wallet scheme:

• It has been decided to extend the available tax exemptions on imported goods for 6 more months beyond 31.03.2018. Exporters currently utilizing export promotion schemes can continue to use such exemptions on their imports till 01.10.2018, by then an e-Wallet scheme will be introduced to continue the benefits in future.
• The council decided to defer the implementation of the e-Wallet scheme by 6 months upto 01.10.2018.
• Extend the present dispensation in terms of exemptions etc. which is available up to 31.03.2018, for 6 more months up to01.10.2018.

Recommendations regarding E-way Bill:

• The council recommended the introduction of e-way bill for inter-State movement of goods all over India from 01^st April 2018.
• For intra-State movement of goods, e-way bill system will be introduced from a date to be announced in a phased manner but not later than 1st June, 2018.

Major improvements over the last set of rules approved by the Council are:

• E-way bill is mandated to be generated only when consignment value is more than Rs. 50000/-. For smaller value consignments, e-way bill is not required.
• For e-way bill generation, value of exempted goods has been excluded from value of consignment.
• Public conveyance has been included as a mode of transport and generating e-way bill in case of movement of goods by public transport is to be done by the consignor or consignee.
• Railways has been exempted from generation and carrying of e-way bill with the condition that without the production of e-way bill, railways will not deliver the goods to the recipient. Railways are required to carry invoice or delivery challan etc.
• Time period for the recipient to communicate his acceptance or rejection of the consignment will be the validity period of the corresponding e-way bill or 72 hours, whichever is earlier.
• In case of movement of goods on account of job-work, the registered job worker can also produce e-way bill.
• Consignor can authorize the transporter, courier agency and e-commerce operator to fill PART-A of e-way bill on his behalf.
• Movement of goods from the place of consignor to the place of transporter up to a distance of 50 km does not require filling of PART-B of e-way bill. PART-A of e-way bill needs to be produced.
• Extra validity period has been given for Over Dimensional Cargo (ODC).
• If the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period in case of transhipment or in any exceptional nature.
• Validity of one day bill will expire at midnight of the day following the date of production of e-way bill.
• Once verified by any tax officer, the same conveyance will not be subject to a second check in any State or Union territory, unless specific information on that is received.
• In case of movement of goods by railways, airways and waterways, the e-way bill can be generated even after commencement of movement of goods.
• Movement of goods on account of Bill-To-Ship-To supply will be managed through the capturing of place of despatch in PART-A of e-way bill.

About GST Council:

• Chairperson – Arun Jaitley
• GST Council Secretariat – New Delhi