Key Points of recommendation from 45th meeting of GST Council is enumerated as below
1. Rule 36(4) would be amended and ITC would be equivalent to the extent the invoices/ debit notes are furnished by the suppliers. There will not be any provisional ITC of 5% post this amendment.
2. There will not be any Interest levy on ITC availed but not utilized retrospectively w.e.f. 01.07.2017.
3. Unutilised Cash Ledger balance may be allowed to be transferred between distinct persons i.e. between branches having the same PAN but registered in different states.
4. It is proposed to be clarified that during the time of transportation there would be no requirement of carrying physical copies of E-invoices generated under Rule 48(4) of the CGST Rules, 2017
5. GST rate of miscellaneous goods of paepr like, catalogue shade cards and printed material under CH 49 of tariff to increase to 18% from erstwhile 12%.
6. Now the government plans to issue a fresh circular once again for explaining the scope of intermediary services.
7. In many a case, the department used to deny the benefit of export of services in case of subsidiaries outside India which belonged to the company. This was irrespective of the fact that they were separate legal entities. Now it has been clarified that person incorporated under the laws of any other country would be treated as separate entities under export of services.
8. The date of debit note, and not the date of underlying invoice would be considered for the purpose of determining the aforesaid period of limitation prescribed under Section 16(4) of the CGST Act i.e. ITC may be availed on the basis of the date of issuance of DN.
9. There has been a lot of confusion regarding the procedure and time limit for filing of refund for wrongly taxes paid as CGST/SGST instead of IGST and vice versa. It is proposed to remove the ambiguity in the process.
10. Currently, Rule 59(6) of the CGST Rules does not permit filing of GSTR-1 if a registered person does not file GSTR-3B for preceding 2 months/preceding quarter.
With effect from 01.01.2022 a registered person shall not be allowed to furnish FORM GSTR-1 if he has not furnished the return in FORM GSTR-3B for the preceding month itself.
11. GST rates of cartons, boxes, packing containers of paper etc. proposed to increase rate from 12% to 18%.
12. GST rate of Waste and scrap of polyurethanes and other plastics to increase to 18% from 5%.
