Decisions taken by the GST Council in the 32nd meeting held on 10th January, 2019

GST Council in the 32nd meeting held on 10th  January, 2019 at New Delhi took following decisions to give relief to MSME (including small traders), and took following other decisions but same would be given effect to through Gazette notifications/ circulars which shall have the force of law.-

Extension of Due Date for Filing Annual Return & Audit Report Under GST

Restriction on Input Tax Credit-Motor Vehicles-Section 17(5)(a)

Section 17(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1)

of  section  18,  input  tax  credit shall  not  be  available  in  respect  of  the  following, namely:—

(a)      motor vehicles and other conveyances except when they are used ––

(i)       for making the following taxable supplies, namely: —

(A)     further supply of such vehicles or conveyances ; or

(B)     transportation of passengers; or

(C)     imparting  training  on  driving,  flying,  navigating  such  vehicles  or conveyances;

(ii)      for transportation of goods;

In clause (a) section 17(5) of the Act , restriction has been imposed on input Tax credit relating to motor vehicle ,it means that tax credit of ‘input’ and ‘input service’ both will be restricted.

RESTRICTION OF INPUT TAX CREDIT-Section 17(5)(c) of CGST ACT

“Section 17 (5)    :-        Notwithstanding  anything  contained  in sub-section  (1) of section 16 and subsection (1) of section  18, input  tax credit  shall  not be available  in respect  of the following namely:

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(c ) works contract services (WCS) when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.”

Now question arise whether a works contractor can avail input tax credit for the tax paid on it’s inward supply of goods (i.e. input) or services or it is restricted as per section 17(5) (c) & (d) of the CGST Act,2017?

Extension of due date filing ITR and TAR

*CBDT further extends due* dt for filing of IT Returns & audit reports from *15th Oct,2018 to 31st Oct, 2018* for all assessees liable to file ITRs for AY 2018-19 by 30.09.2018,after considering representations from stakeholders. Liability to pay interest u/s234A of ITAct will remain.

*Source- Income Tax Twitter handle-https://twitter.com/IncomeTaxIndia/status/1049278032157048832?s=19*