Highlights of 38th GST Council Meeting

GST Council in its 38th Meeting held on 18 December 2019, has announced various measures, particularly focusing on the compliances and wrongful availment of Input tax credit.

1. On GST Returns

  • Date of filing of Annual GST return and reconciliation statement for FY 2017-18 in form 9 and 9C extended from 31 December 2019 to 31 January 2020
  • Waiver of late fees announced for all taxpayers to encourage the filing of pending GST return in form GSTR-1 by 10 January 2020. Failure to do so, e-way bill to be blocked, where returns are not filed for two tax periods
  • Standard operating procedures to be issued to tax officers on the actions to be taken in case of non-filing of GSTR-3B

2. On Input tax credits

  • The restriction of 20 per cent1 imposed on availing credit of unmatched invoices has been further reduced to 10 per cent
  • Measures to block credits in case of fraudulent claim of ITC

3. GST Rates 

Sl. No. Particulars Existing position Announcement on the 38th Council Meeting Effective date
1 CH – 9972 Upfront amount payable for long term lease of industrial/ financial infrastructure plots Exemption available to an entity having 50 per cent or more ownership of Central or State Government Scope enhanced to allow exemption for entities having 20 per cent or more ownership of Central or State Government 1 January 2020
2 Lottery run by state Government GST rate 12 per cent 28 per cent 1 March 2020
3 Lottery Authorised by State Government GST rate 28 per cent Continue to remain at 28 per cent NA
4 CH 3923 or 6305 – Woven and non-woven bags and sacks of polyethylene or polypropylene strips or the like, whether or not laminated, of a kind used for packing of goods. GST rate 12 per cent 18 per cent 1 January 2020


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