Latest GST changes - 26th GST council meeting

Highlights from 27th GST council meeting 

Simplified return filing

  • GST council approved easier return filing framework. The software for the new filing system will be put in place in six months.
  • There will be one return per month for taxpayers excluding a few exceptions like composition dealers and nil taxpayers.

Unidirectional Flow of invoices

  • There will be a unidirectional flow of invoices uploaded by the seller anytime during the particular month which would be a valid document for availing Input Tax credit by the buyer.
  • Invoices for the B2B transaction shall need to use HSN at 4 digit level or more to achieve uniformity in the reporting system.

Easy IT interface

  • The dealers of B2B will have to fill the invoice wise details if the outward supply made by them, based on which the system will calculate his / her tax liability.
  • The taxpayer shall have a user-friendly IT interface and an offline tool to upload the invoices.

No Automated reversal of credit

  • No Automatic reversal of input tax credit from a buyer on non-payment of tax by the seller.
  • In case of default payment of the tax, recovery shall be made from the seller.

Due process for the recovery and reversal

  • Recovery of tax or reversal of ITC will be through a due process of issuing notice and order.
  • The due process will be online and automated to lessen human interface.

Supplier side control

  • In case of default payment of the tax by the seller above the threshold amount to pass the ITC shall be blocked to control the misuse of ITC facility.
  • Analytical tools would be used to identify such transactions at the earliest and prevent the loss of revenue.


  • The current arrangement of GSTR-3B and GSTR-1 will continue.
  • The new return will have the facility for invoice-wise data upload and also a facility for claiming ITC on self-declaration basis, as in case of GSTR 3B now.
  • The dealer will be fed with information about the gap between the credit available to them as per the invoices uploaded by the sellers and the provisional credit claimed by them.

The content of return and implementation

  • Simplification of the return will be by reducing the content required to be filled in the return.
  • Government is eager to introduce the easier return design at the earliest to reduce the compliance burden on the trade.

Highlights from 26th GST council meeting 

  • E-way Bill
    • Implementation from April 1, 2018 for inter-state movement of goods.
    • Implementation of intra-state e-way bill from April 15, 2018 in a staggered manner (States to be divided into 4 lots to execute the staggered rollout). The entire country to be covered by June 1.
    • Generation and carrying of e-way bill for goods above Rs. 50,000 mandatory.
  • GSTR filing
    • Existing system of filing returns to continue for another 3 months i.e., till June 2018. This means, filing of GSTR-1 and GSTR-3B will be continue as per current norm.
  • Reverse Charge Mechanism
    • It will not be applicable till June 2018.
  • TDS & TCS applicability
    • It has been put forward until 30th June 2018 pending procedural
  • GST for exporters
    • They will continue with the current exemption till 1st Oct 2018 by which time an e-Wallet scheme should be in place.


Highlights from 25th GST council meeting held on 18th January 2018

  • Late fee reduction
    • Late fees amount decreases to Rs. 50 per day for GSTR-1, GSTR-5, GSTR-5A, and GSTR-6 . In case of Nil return filed for GSTR-1, GSTR-5, GSTR-5A late fee decreases to Rs. 20 per day.
  • Cancellation of registration by voluntary registrants can be applied before the expiry of 1 year from the date of registration.
  • Cancellation of registration (REG – 29) by migrated taxpayers extended till 31st March 2018.
  • The E-way bill portal will shift to on the successful implementation of e-Way bills.
  • Certain modification to e-way bill rules to be notified soon.
  • Acceptance of recommendations made by Handicraft committee: The desicion of rates to come later.
  • 29 Handicraft items put under 0% slab. There is also a reduction in GST rates for few agricultural products.
  • GST Rates slashed for 29 Goods and 53 Services. These rates will come into effect from 25th January 2018. A few more items may be included to the list.
  • The Council also discussed the process to make return filing simpler. Businesses at present have to file GSTR-3B as well as GSTR-1, which is the final invoice wise sales returns. Finance minister Arun Jaitley indicated that filing one return may be the only requirement going forth.
  • Finance minister Arun Jaitley said the panel at its next meeting may also consider bringing under the Goods and Services Tax purview items like the petroleum and real estate which are currently outside the new regime.
  • Rs 35,000 crore of Integrated-GST will be provisionally divided between the central and states.


Highlights from 24th GST council meeting held on 16th December 2017

  • E-way bill system testing continues until January 25, the compulsion of loading will be from Feb.
  • 15 states agree on the intra-state e-way bill.
  • From 16th Jan 2018, the e-way bill rules will roll out on a trial basis.
  • The e-way bill will implement in India from 1st Feb 2018 for inter-state transport
  • The states can opt to follow the e-way bill system for intra-state transport anytime between 1st Feb to 1st June 2018.
  • From 1st June 2018 e-way bill rules for intra-state transport will uniformly apply to all states.
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