The GST council has extended the cut-off date for filing annual returns for FY18 by two months to August 2019. The decision comes as a major relief to trade and businesses, which will ease the enrollment process for new firms.
Addressing a press conference after the meeting, Revenue secretary Ajay Bhushan Pandey termed the decision as consumer-friendly.
"In order to ensure GST rate cuts are actually passed on to customers and no anti-profiteering takes place the current provision is that only the penalty of Rs 25,000 will be imposed in addition to the profiteered amount," Pandey said.
"So, the change approved by the Council is that now if the profiteered amount is not deposited within 30 days, then the penalty to the extent of 10 per cent of the profiteered amount will be imposed on the company," he said.
Here are the pointers of the GST Council meet
# In its decision, the Council has decided to allow the use of 12-digit Aadhaar number for getting GST registration.
# The Council has also made it mandatory for registered multiplexes to issue e-tickets, in order to check tax evasion. The electronic invoicing system would be rolled out in a phase-wise manner for B2B transactions.
# The proposal to slash GST on electric vehicles (EVs) from 12% to 5% has been sent to a rate fitment committee. The issue will be taken up in the next GST Council meeting.
# The issue related to the valuation of goods and services in a solar power generating system and wind turbine would also be taken up first by the panel of officers.
# The Council chaired by Union Finance Minister Nirmala Sitharaman extended the tenure of National Anti-Profiteering Authority (NAA) by two more years to ensure companies pass on the benefits of lower GST rates to consumers.
# The Council also decided to have a common State Bench for the States of Sikkim, Nagaland, Manipur and Arunachal Pradesh, for the Goods and Services Tax Appellate Tribunal (GSTAT) with the legislature.
# Hectic lobbying by cement companies and builders failed to convince the apex indirect tax body to cut GST on cement from 28 per cent to 18 per cent.
# The GST Council has not provided any relief to the automobile sector.
The decisions by the GST Council were welcomed by the Industry body Ficci, that said the development will ease the compliance burden.
"The thought process laid by the Government regarding its endeavour to bring more items in the ambit of GST regime including simplification of GST Rules and rationalization of rates is indeed a step in the right direction and would pave the way for simplification and stability under the GST regime," it noted.