38th GST council meeting: ITC credit reduced, annual return due date extended and much more:

written by GST expert | December 19, 2019

On the 18th December 2019, 38th GST council meeting was held wherein various decisions were taken. In this post we are going to discuss all the points in brief:

  • Grievance redressal committee will be formed at the zonal and state level
  • Due date for Form 9/9C extended to 31.01.2020.
  • Waiver of Late filing fee for GSTR 1 from 01.07.2017 to November 2019 if all return filed till 10.01.2020.
  • No E-will facility for tax payers who haven’t filed their GSTR 1 for past 2 tax periods.
  • Input tax credit for invoices and debit notes that are not available in GSTR 2A has been restricted to 10% of eligible credit. Earlier this year i.e. before 2 months the same was reduced to 20% and now the same has been further reduced to 10%. In future there will occur a scenario where they will say you will only get credit of ITC which is available in 2A irrespective of invoices and that is when invoices would no longer be required.
  • Due date for GST return for North eastern states have been extended.

Rate Changes:

  • Single rate of 28% GST for state owned and state authorized lottery effective from 01.03.2020.
  • All woven, non – woven bags falling under HSN 3923/6305 including Flexible intermediate Bulk containers (FIBC) to be taxed at 18% from 12% effective from 01.01.2020.

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