Looking at the various issues being discussed by the GST council we expect following to happen in the year 2019.
S. No.
|
Brief
|
Details
|
1.
|
Formation
of Central Authority for Advance Ruling
|
Central
authority for Advance Ruling might get established to settle difference of
opinion in various state level AAR. The decision towards this has been taken
in recent GST Council meeting held on 22nd December 2018.
|
2.
|
GST
Rate to settle at 15%
|
The
GST Tax rate of 18% and 12% might get merged to one rate of 15%. This might
come from the political compulsion of the ruling party as the opposition is
strongly marketing the idea of one rate under GST.
|
3.
|
Simplification
of Annual Return
|
Since
the filing of annual return itself has been extended up to 30.06.2019 we can
expect major simplification in the GSTR 9 and GSTR 9C return format. The issues
relating to bifurcation of ITC in capital goods, inputs, input services or
issues related to inward HSN or allowability of amendment at the time of
filing of annual return might get introduced.
|
4.
|
New
monthly Return Filing structure
|
The
new return filing structure as put up by Nandan Nilekani Committee might get
introduced from 01.04.2019. Under Phase 1 the purchaser would be able to
amend data filed by supplier but in phase 2 to be implemented from 01.10.2019
such correction by the inward supplier may not be allowed.
|
5.
|
Notifying
the amendments to law as passed by Amendment Act dated 29.08.2018
|
The
government may notify the applicability of amended provisions as per the
Amendment Act given assent by president on 29.08.2018.
|
6.
|
Simplification
of E-way Bill
|
We
can expect further simplification of e-way bills in terms of cancellation, updating
vehicle number and introduction of tagging system for monitoring the movement
of goods.
|
7.
|
Assessment
Proceedings to be initiated by the Department
|
Since
it is expected that first annual return under GST shall be filed in the year
2019. The provisions relating to assessment/inspections and prosecutions
might get life and enforced by the department based upon such annual return.
|
8.
|
Reduction
in rate of Cement and Auto Parts
|
With
pressure building up, the council may near to general election can reduce the
rates of cement, auto parts, AC, dishwasher from 28% to lower slab rate.
|
9.
|
Composition
scheme for Service Providers
|
As
the government is mulling over to bring service industry at par with goods,
the decision regarding composition scheme in service sector might come soon.
This will certainly bring relief to the small scale service providers.
|
10.
|
Amendment
in Section 50
|
The
government might bring amendment in section 50 of the CGST Act 2017 and other
acts respectively for levy of interest only on the cash liability of the
taxpayer after utilisation of input tax credit. At present the interest is
charged on the gross liability of the taxpayer instead of net cash liability.
|
11.
|
Full
Automation of refund process
|
As
decided by the GST Council, a trial run is being initiated for fully automated
refund mechanism, we can expect the same to be implemented in full force by
the end of 2019. This shall reduce the manual intervention, making it easy
for both the parties.
|
12.
|
Increase
in GST Threshold limit to Rs. 50 lakhs
|
As
the GOM is proposing Rs. 75 lakhs as minimum threshold limit for GST
Registration, we can expect the things to settle at Rs. 50 lakhs. But as per
our view, more is the minimum threshold, tax evasion would increase more.
|
13.
|
Introduction
of common ledger for payment of tax.
|
We
can expect the introduction of common ledger for payment from where the
amount can be adjusted towards various heads of Electronic Cash Ledger. This shall
safeguard the taxpayer from depositing the tax under wrong heads saving him
from unnecessary procedural complications.
|
14.
|
Digital
Wallet for the exporters.
|
A
idea of past might get enforced during 2019. The concept of e-wallet for the
exporters might get implemented. This shall ease the procedures for the
exporters while claiming refund. Also the gap between the export and refund
will get reduced by implementing the Digital Wallet.
|
15.
|
Budgetary
support might get allowed for addition of products.
|
The
department and taxpayers had been in a tussle with respect to the budgetary
support on the addition of products made by the exempted unit. We can expect
a detailed circular in this regards to settle the actual proposition. Also
looking at various judgments we can expect the matter will get settled in
2019.
|
16.
|
Further
extension in date for filing Annual Return.
|
The
date for annual return had already been extended to 30.06.2019. Since new
government after general elections is likely to be formed by end of May 2019,
we can expect the further extension of due dates for filing of annual return.
Also we can expect the single annual return for FY 2017-18 and FY 2018-19. We
expect that date might get further extended to 31.12.2019 looking at income
tax returns and audit due on 31.07.2019 & 30.09.2019 respectively.
|
17.
|
Suitable
amendment to struck down Columbia Asia Hospital judgment
|
The
GST Council might examine the judgment in case of Columbia Asia Hospitals
Private Limited. We can expect a suitable amendment in the law to clear the
concept of distinct person as per section 25(4) of the act. The judgment has
created an issue pertaining to employee cost being borne by head office for
rendering of services to branch offices.
|
18.
|
Introduction
of separate billing to unbundle services in cases involving exempt &
taxable supply
|
The
concept of twin billing in case of healthcare/education industry might get
introduced. In order to ensure that the tax benefits are passed onto the
consumers, government had been mulling over the idea of unbundling the exempt
and taxable services specially in healthcare industry. In this regards
suitable amendment might come to further elaborate the concept of composite
supply under GST.
|
19.
|
Enforcement
of Reverse Charge on purchases from unregistered person.
|
The
necessary provision to plug the tax leakage might get enforced. The
provisions of reverse charge on purchases made from unregistered person might
get life. The section 9(4) [CGST Act 2017} & 5(4) [IGST Act 2017] had been
deferred since the appointed date. If the same party comes back to rule after
2019 general elections, the provision snoozing since long might wake up
immediately.
|
The
above expectations are based upon our understanding and knowledge of GST Law.
We shall not be responsible for any loss/gain which might arise to any person
forming opinion based upon our expectation. Readers are advised to conduct
their own due diligence and study before framing opinion based upon our study.
Regards
CA. Keshav R Garg
(B.Com, FCA, CS, ISA(ICAI))
Author: Bharat's GST Ready Reckoner
A Handbook on GST
Member: Indirect Tax Committee of CII,
Founder: MyGst.MyTax Foundation
Adviser: Industries Association of Chandigarh
Adviser: Chambers of Chandigarh Industries
Address: 3328, First Floor, Sector 27 D, Chandigarh, India - 160 019
Phones: +91-172-461-3328, +91-98880-90008
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