Some companies have dragged the government and the indirect tax department to court over GST levied on longterm land lease deals. As per the current regulations, 18% GST is levied on any long term (99 years) lease transactions. The GST paid becomes a cost as it cannot be used as input tax credit in case the recipient wishes to construct a hotel or any other commercial property on it. The companies have filed a writ petition in the Rajasthan High Court demanding that either GST be removed from such transactions or they be allowed to claim credit.

The GST Council, in its 37th meeting held at Goa, has come up with various proposals to simplify and strengthen the tax filing system and one such decision is aimed at ensuring taxpayers file their GSTR 1 in time. “In order to nudge taxpayers to timely file their statement of outward supplies, imposition of restrictions on availment of input tax credit by the recipients in cases where details of outward supplies are not furnished by the suppliers in the statement under section 37 of the CGST Act, 2017,” a statement said.

Finance minister Nirmala Sitharaman cut corporate tax rate to 15% for new manufacturing outfits that are set up on or after October 1, 2019 and commence manufacturing before March 31, 2023. However, the government has ensured that the proposed 15% tax rate is available only to new investment in manufacturing Entities formed by splitting up or reconstruction of a business already in existence shall not be eligible under the new regime except in situations of natural or manmade calamity, riot or fire wherein an entity needs to be re-established, reconstructed or revived on or after October 1.

The GST Council on Friday took an in principle decision to link Aadhaar with registration of taxpayers under GST and also examine the possibility of making the 12-digit unique identification number mandatory for claiming refunds. The council also decided to a withdraw a circular issued in June which prescribed that the additional discount given by a company to a dealer in certain cases will be liable for GST. The council also decided to give relief to the job-creating MSME sector in filing of annual GST composition return (Form GSTR-9A) for fiscal years 2017-18 and 2018-19.

The GST Council in its 37th meeting held at Goa provided relief to MSMEs by allowing them waiver to file GSTR-9 and GSTR-9A for FY 2017-18 and FY 2018-19. Additionally, filing of Form GSTR-9 for those taxpayers who have aggregate turnover up to Rs 2 crore has been made optional for the said tax periods. A Committee of Officers will be constituted to examine the simplification of Forms for Annual Return and reconciliation statement. In another significant announcement, the new return system which was to be introduced from October 2019, will now be introduced from April, 2020. 

Verification of Aadhaar would be compulsory for new dealers from January 2020 to curb malpractices in paying GST. Though currently optional, all new dealers will have to submit their Aadhaar number for authentication from January 1 to curb the menace of fake invoices that came to light after the new tax regime came into being from July 1, 2017. The GST Network has also decided to complete online refunding from September 24 from the central GST or the state GST.