Highlights of 26th GST Council Meeting

Major Highlights of 26th GST Council Meeting

GST Council in its 26th Meeting held under the Chairmanship of the Union FM, Shri Arun Jaitley today in New Delhi sent a strong positive signal to exporting community by deciding to extend the available tax exemptions on imported goods for further 6 months beyond 31st March,2018.

Thus, exporters presently availing various Export Promotion Schemes can now continue to avail such exemptions on their imports up to 1st October,2018, by which time an e-Wallet Scheme is expected to be in place to continue the benefits in future.

GST Council also agreed today to:

a.    Defer the implementation of the e-Wallet scheme by 6 months i.e., upto 01.10.2018; and

b.    Extend the present dispensation in terms of exemptions etc. which is available up to 31.03.2018, for a further 6 months i.e., upto 01.10.2018.

In a related development which would benefit the exporters, the GST Council reviewed the progress in grant of refunds to exports of both IGST and Input Tax Credit. The Council appreciated that the pace of grant of IGST refund has picked up.

Thereafter, the GST Council directed GSTN to expeditiously forward the balance refund claims to the Customs/Central GST/State GST authorities, as the case may be, for their immediate sanction and disbursal.

For merchant exporters a Special Scheme of payment of GST @ 0.1% on their procured goods was introduced.

Domestic procurement made under Advance Authorization, EPCG and EOU Schemes were recognized as ‘deemed exports’ with flexibility for either the suppliers or the exporters being able to claim a refund of GST/IGST paid thereon. All these avenues were made available upto 31.03.2018.

A new model was discussed extensively and Group of Ministers on IT has been tasked to finalize the same.

Another major recommendation of the Council includes deferment of the liability to pay tax on reverse charge basis till 30.06.2018. Meantime, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade & industry.

Another major recommendation of the GST Council was relating to Grievance Redressal Mechanism. The GST Council in its 26th Meeting today tasked the GST implementation Committee (GIC) with the work of redressing the grievances caused to the taxpayers arising-out of IT glitch.