HIGHLIGHTS OF 27TH GST COUNCIL MEETING

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Simplified Return Filing Process and ITC claiming process:

1. A comprehensive single return with details of inward and outward supplies. This will reduce the number of returns, help in invoice matching and have all details in one place. Focus will be on making everything tech savvy, on the move and supporting the idea of Digital India.
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2. Simplified ITC claiming process is the need of the hour to avoid waiting for confirmations, acceptances from the recipient or tedious tasks of uploading sale/purchase details to avail the credit.

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Two percent Incentive for Digital Payments

The GST Council, after its 27th Meeting, has decided to approve a proposal wherein a 2 per cent concession, subject to a ceiling of Rs 100 per transaction, may be offered to consumers in B2C transactions if they pay through digital modes.
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While attending a press conference after the GST Council meeting, Finance Minister Arun Jaitley said that “the issue before the council was whether on digital payments through either the banking mode or the cheque mode or any form of digitized mode, a two percent incentive should be given to those who pay entirely through digitized mode. This would be subject to a  cap of Rs. 100 per voucher. And this would not apply to the composition dealers.”
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The Government‘s move to provide concessional rate for digital payments under GST in B2C transactions is estimated to cost the exchequer around Rs 10,000-25,000 crore, depending on the share of such transactions in total digital transactions in a year.
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E-Way Bill:

1. A possible process wherein the E-Way bill is checked just once during transit
2. Alternate lines for uploading details for generating EWBs in case of un-supported formats
3. One-nation, one format for generating E-Way bill were states will avoid having their own forms in addition to the basic notified ones.

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Reverse Charge Mechanism:

1. Preponement of applicability of Reverse charge mechanism(Before June 30). This could be initially only for a particular class of taxpayers, say dealers under composition scheme.

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Other points:

1. Imposition of a cess on sugar to help farmers
2. Include Real Estate/transfer of property into the GST regime
3. Amendment of the ITC provision in the GST to enable any business to take credit on any business-related expenses (employee transport etc.)
4. Exemptions for payments made by employees for the services received from the employers (eg: canteen services)
5. Based on various adjudications on anti-profiteering norms under GST, some clarity is expected from the council
6. Encouragement for digital transactions by providing cash backs,  discounts, credits etc.

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REGARDS
ACA SOURAV BAGARIA