GST Council Meet: Recommendations relating to GST law and procedure

Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:

a. Taxpayers whose annual aggregate turnover in the preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;

b. Taxpayers whose annual aggregate turnover in the preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.

Amended- Interest is to be paid by a taxpayer on “ineligible ITC availed and utilized” and not on “ineligible ITC availed”. It has also been decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.
Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons
Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues-

Clarification on the scope of “intermediary services”;
Clarification relating to the interpretation of the term “merely establishment of distinct person” in condition (v) of Section 2 (6) of the IGST Act 2017 for export of services.
Date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year
No need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules
Only those goods which are actually subjected to export duty will be covered under the restriction imposed under section 54(3) of CGST Act, 2017 from availment of refund of accumulated ITC.

Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid as specified in section 77(1) of the CGST/SGST Act and section 19(1) of the IGST Act.