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The 50th meeting of the GST council is also expected to finalise contours for setting up appellate tribunal, and demand of the industry for reimbursement of full CGST and 50 per cent IGST in 11 hill states under the ‘scheme for budgetary support’.
The GST Council is likely to provide for mandatory physical verification of the business premises of ‘high risk’ applicants before granting of GST registration, as well as reduced time for submitting Pan-linked bank account details to GST authorities.
New Rule In GST Law
A new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer is likely to be discussed.
The Law Committee, comprising tax officers from Centre and states, have opined that where the ITC availed in GSTR-3B return exceeds the amount of ITC available in accordance with the auto-generated statement GSTR-2B by a specified threshold, the registered person may be intimated on the portal about such difference and be directed to either explain the difference or pay the excess ITC along with interest.
The Committee has suggested that the provision should kick in if the difference is more than 20 per cent and more than Rs 25 lakh.
GST Council is likely to take a final call on the recommendation of the Committee.
The GST Council, a constitutional body, holds the responsibility of providing recommendations concerning the implementation of the Goods and Services Tax (GST) in India. The first meeting of the GST Council took place on September 22-23, 2016, and subsequently, the Council convenes at regular intervals to discuss and make decisions on diverse GST-related matters.
The Council has so far held 49 meetings to date, and its decisions have had a significant impact on the GST implementation in India.
