The 39th GST Council meeting is happening tomorrow at Vigyan Bhawan, New Delhi where Union FM Nirmala Sitharaman will be heading the meeting. The Council will be making decisions on specific pressing issues related to GST systems.
The meeting will see a delay in e-invoicing and the new GST return system by three months. While the trial runs for both these systems are underway, taxpayers seem to be more concerned about the glitches currently faced on the GST portal. Also, the e-invoicing system has received a cold reception from the large taxpayers, as less than 3% of the applicable users have signed up.
It is said that both these may be made applicable from 1st July 2020 as against the earlier date of 1st April 2020. Meanwhile, the GSTN may be able to pull off with better and integrated solutions.
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Recent developments regarding the GSTN’s dissatisfaction about the IT systems has prompted Infosys to step into action. The annual return system may not be pushed any more, considering that enough time was given. But, the lack of a stable facility has led the taxpayers to call on the GSTN for better systems. The CBIC and its team are extensively taking measures to curb tax evasions. This Council meeting may see new rules for bringing more responsibility on the shoulders of the GST registered suppliers.
The interest on delayed GST payment is calculated now on the net tax liability and applies prospectively. Many GST consultants and taxpayers are concerned about this decision and are hoping to hear retrospective applicability since July 2017.
The late fees waiver for the years 2017-18 and 2018-19 has been a significant demand from the taxpayers for a while. In some cases of GST notices being issued for interest, the extended due dates had not been considered. GST was mostly unstable for taxpayers during the first two years of the GST’S implementation, hence giving them any relaxation will prepare them for better compliance levels in the future periods.
The GST Council has already set up a revenue augmentation committee to look into the possible solutions for increasing the GST collections. In this meeting, it may relook into the GST rate structure, especially rate corrections for addressing the inverted tax structure. Certain items that were exempted or nil rated may be back under GST.
More items such as textiles, mobiles, solar modules, fertilisers, railway locomotives, and steel utensils tax, ranging between a tax rate of 5-12% may undergo the rate corrections. States will be pushing the centre to resolve the compensation matter in this meeting, but since other pressing issues need redressal, it’s less likely to be on the cards.
The previous GST Council meeting was conducted on 18th December 2019 where an important decision was taken to defer GSTR-9 and 9C for the first two years of GST.
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Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.