35th GST Council Meeting held on 6th june, 2019 in New Delhi

The 35th GST Council meeting (the first to be chaired by the new finance minister Nirmala Sitharaman) was held recently

  • NAA - The Council has decided to extend the tenure of National Anti-profiteering Authority (NAA) by another 2 years, till November 2021.
  • It was originally scheduled to end this year. Click here to know more on National Anti-Profiteering Authority,
  • The council also made the rules more stringent to enssure companies pass on the benefit of lower taxes to consumers.
  • It thus approved the imposition of an additional penalty of up to 10% of the profiteered amount if companies do not pay fine in 30 days.
  • At present, companies have to deposit a penalty of Rs 25,000.
  • Electronic Invoicing - The council decided to introduce e-invoicing in a phased manner for business-to-business (B2B) transactions.
  • E-invoicing would help tax authorities in combating the menace of tax evasion.
  • Phase 1 is proposed to be voluntary and will be rolled out in January 2020.
  • The council also gave in principle nod to an electronic invoicing system for companies and e-ticketing for multiplexes.
  • E-tickets issued by registered multiplexes shall be deemed to be tax invoices.
  • Aadhaar - Aadhaar has been approved as sufficient proof to obtain GST registration.
  • Returns filing - The council extended the deadline to file annual GST returns for 2017-18 by 2 months to August 31.
  • EV tax rate - Proposals to cut GST on electronic vehicles (EVs) to 5% from 12% and on electric chargers to 12% from 18% have been referred to the fitment committee.
  • The issue over fixing the GST rate on leased EVs has also been assigned to the committee.
  • The taxation of lotteries has been referred to the attorney general, seeking his view on the issue.
  • [There has been a Calcutta High Court judgment and there is a petition before the Supreme Court in this regard.]
  • Right now private and state-run lotteries face differential rates.
  • A state-organised lottery attracts 12% GST while a state-authorised lottery attracts 28% tax.
  • There is a dispute on whether a uniform tax rate should be imposed on lotteries or the current differential tax rate system should be continued.
  • An eight-member group of state finance ministers could not reach a consensus on this.
  • The attorney general will thus see if a product (being one good) can be taxed differently or not under the GST.
  • GSTAT - The council decided on the location of state and area benches for the GST Appellate Tribunal (GSTAT) for various states and UTs with legislatures.
  • It has been decided to have a common state bench for Sikkim, Nagaland, Manipur and Arunachal Pradesh.

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