Recommendations of 31st Meeting of the GST Council

The 31st GST Council meeting held today at New Delhi made the following policy recommendations:

GST 2.0-New return filing system to be introduced: A new return filing system will be introduced on a trial basis from 01.04.2019 and will be finally implemented on 01.07.2019.

Single tax head for each cash ledger: The specifics of this implementation will be finalised in close consultation with the GSTN and Accounting authorities.

A single scheme for disbursement of refund to be implemented on a pilot basis: A scheme of a single authority for disbursement of the refund amount sanctioned by either the Centre or the State tax authorities would be implemented on a pilot basis. The modalities for the same shall be finalized shortly.

Defaulters will be barred from generating E-way bill: Taxpayers who have not filed the returns for two consecutive tax periods will be barred from generating e-way bills. This provision will come into effect once GSTN/NIC make the required functionality available.

Late free waiver recommended: In case the FORM  GSTR-1, FORM GSTR-3B &FORM GSTR-4 for the months/quarters July 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019, the late fee shall be completely waived.

Changes in the Annual Return/Reconciliation statements

Due date for GSTR-9 and 9C recommended for an extension: The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 is extended till 30.06.2019.

1. Among other things, these clarificatory changes shall be carried out in the following formats/instructions according to which the annual return/reconciliation statement is to be submitted by the taxpayers:
2. Amendment of headings in the forms to specify that the return in FORM GSTR-9 &FORM GSTR-9A would be in respect of supplies, etc. ‘made during the year’ and not ‘as declared in returns filed during the year’;
3. Before taxpayers file the FORM GSTR-9 & FORM GSTR-9C they must fill the FORM GSTR-1 & FORM GSTR-3B.
4. All returns in FORM GSTR-4 have to be filed before the filing of FORM GSTR-9A.
5. HSN code may be declared only for those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies
6. If any additional payments are to be made they can be done through the FORM GST DRC-03 in cash
7. ITC cannot be availed through FORM GSTR-9 &FORM GSTR-9C;
8. All invoices pertaining to previous FY (irrespective of the month in which such invoice is reported in FORM GSTR-1) would be auto-populated in Table 8A of FORM GSTR-9;
9. Value of “non-GST supply” shall also include the value of “no supply” and may be reported in Table 5D, 5E and 5F of FORM GSTR-9;
10. Verification by a taxpayer who is uploading the reconciliation statement would be included in FORM GSTR-9C.

Due Date Extensions

Due Date for Form GSTR-8 extended: The due date for furnishing the GSTR-8 FORM by e-commerce operators – the months of October, November and December 2018 – shall be extended till 31.01.2019.

Due Date FORM GST ITC extended: The due date for submitting FORM GST ITC-04 for the period July 2017 to December 2018 shall be extended till 31.03.2019.

GST Council recommends an extension for ITC claim

ITC in relation to invoices issued by the supplier during FY 2017-18 may be availed by the recipient till the due date for furnishing of FORM GSTR-3B for the month of March 2019, subject to specified conditions.

Clarifications for case-specific ITC queries to be issued soon: Complex issues such as refund of ITC accumulated on account of inverted duty structure, the time allowed for availing ITC on invoices, disbursal of refunds within the stipulated time, refund of accumulated ITC of compensation cess, etc, will be clarified promptly

Changes to the Refund process

Documents for FORM GST RFD-01A to be uploaded electronically: All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01A shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax office for submission of a refund application. GSTN will enable this functionality on the common portal shortly.


The following kinds of refunds shall also be made available through FORM GST RFD-01A:

1. Refund on account of Assessment/Provisional Assessment/Appeal/Any Other Order;
2. Tax paid on an intra-State supply which is consequently held to be inter-State supply and vice-versa;
3. Excess payment of Tax; and
4. Any other refund.

Recommended Procedure: In case of applications for refund in FORM GST RFD-01A – except those relating to refund of excess balance in the cash ledger – that are generated on the common portal before the rollout of the functionality described in point above, and which have not been submitted in the jurisdictional tax office within 60 days of the generation of ARN, the claimants shall be sent communications on their registered email ids containing information on where to submit the said refund applications.

If the applications are not submitted within 15 days of the date of the email, the said refund applications shall be summarily rejected, and the debited amount, if any, shall be re-credited to the electronic credit ledger of the claimant.

A new window to complete the migration process

The due date for such taxpayers who failed to complete the FORM GST REG-26 and only received a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019.

Additionally, the due date for submitting FORM GSTR-3B and FORM GSTR-1 for the period of  July 2017 to February, 2019/quarters July 2017 to December 2018 by such taxpayers will be extended till 31.03.2019.

Changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 and the corresponding changes in SGST Acts would be notified w.e.f. 01.02.2019.


NOTE: The required Notifications/Circulars that will help implement the recommendations of the GST Council mentioned will be issued shortly.