GST Council Meet: GST Council Extends Anti-Profiteering Authority’s Tenure And Annual Return Filing Deadline
The last date for filing annual GST returns was June 30, and the same has been extended till Aug. 31, 2019.
The GST Council on Friday extended the term of National Anti-Profiteering Authority by two years, and the deadline for filing annual GST returns by two months.
The last date for filing annual GST returns was June 30, and the same has been extended till Aug. 31, 2019 on account of difficulties faced by taxpayers in filing their returns, according to a statement by the Ministry of Finance.
The extension for filing annual return and audit report is a big relief for the industry, said Abhishek Jain, an indirect tax partner at EY India.
Besides extending the term of anti-profiteering authority till Nov. 30, 2021, the GST Council has also decided to impose a penalty of 10 percent of the profiteered amount on companies if they fail to deposit undue profits with the government within 30 days, Revenue Secretary Ajay Bhushan Pandey told reporters. Earlier, the penalty for the same stood at Rs 25,000.
“This is a pro-consumer measure,” Pandey said after the meeting.
To ease GST registration process for companies, businesses can use Aadhaar to register against various documents mandated earlier, Pandey said.
This, according to Pratik Jain, leader-indirect tax at PwC India, is a significant step, and could lead to similar linkages with income tax as well in times to come.
E-Invoice System
The council headed by Finance Minister Nirmala Sitharaman has also decided to introduce electronic invoicing system in a phased manner for business-to-business transactions. E-invoicing would help in automation of tax processes, and would simplify the return filing process for taxpayers.
The system—that will help authorities in checking tax evasion—is voluntary, and it shall be rolled out from January 2020, the statement said.
Decision to implement e-invoicing model means that technology will continue to play a critical role in tax administration, said Jain from PwC India.
The council has also approved an e-ticketing system for movie tickets through which registered multiplexes will issue electronic tickets which will be deemed as a tax invoice. Decisions regarding approval of electronic invoicing system and mandatory e-ticketing for multiplexes would certainly help in enhancement of revenue collections of the government and curb evasion, industry body FICCI said in a press statement.
The GST Council has decided to completely phase out GSTR-3B return from January 2020, and to implement new return filing system on a trial basis from July to September 2019.
The issue of lowering rates on sale and leasing of electric vehicles and their chargers will be examined by the Fitment Committee of the GST, and will be taken up for discussion in the next meeting. The council has also decided to seek legal opinion of Attorney General to tax lottery tickets.