Recommendations of 42nd GST Council Meeting Updates

Following are the recommendations discussed in council meeting held by video conferencing:

1. Relief towards revenue loss:

(a) Levy of compensation cess to be extended beyond the transition period of Five years i.e. beyond June’20.

(b) Center is releasing Rs.20,000 crore to states today towards the loss of revenue during FY 2020-21 & Rs.25,000 towards IGST of FY 2017-18 by next week.

2. Enhancement in feature of return filing:

With a view to enhance ease of doing business & improve compliance experience, council provide future roadmap to simplify return filing and enhancement in other features like taxes & ITC reconciliations. Following are the recommendations for this:

(a) Timely filing of GSTR-1 statement alone would be sufficient as the return of FORM GSTR 3B would get auto-populated for liability w.e.f. 01.01.2021;

(b) GSTR-1 filing by supplier will allow customers to view the ITC available in electronic credit ledger from all sources like domestic, imports & payment on reverse charge of taxes through FORM GSTR 2B w.e.f. 01.01.2021

(c) In order to ensure the auto-population of ITC & liability, FORM GSTR-1 would be mandatorily required to be filed before FORM GSTR 3B w.e.f. 01.04.2021

(d) The present return filing of GSTR1/3B structure system to be extended till 31.03.2021

3. Relief to taxpayers:

a) Due date of furnishing quarterly GSTR-1 to be revised to 13th of the month succeeding the quarter w.e.f. 01.01.2021.

b) Taxpayers having turnover<5 crore, allowing filing of return on quarterly basis with monthly payments w.e.f. 01.01.2021. Taxpayers would, for first two month of quarter, have options to pay 35% of net cash liability of last quarter using auto-generated challan

4. Revised requirement of declaring HSN/SAC w.e.f 01.04.2021:

(a) 4 digits & 6 digits HSN/SAC for taxpayers having turnover up-to 5 Crore & above 5 crores respectively. Govt have power to notify 8 digits for notified class of supplier.

5. Others:

(a) Amendment in CGST rules and recommendation for provision for furnishing nil FORM CMP-08 through SMS.

(b) Refund to be paid in a validated bank account linked with PAN & Aadhar of registrants w.e.f. 01.01.2021

(c) To encourage domestic launching of satellites by young-starups, ISRO, Antrix corporation Ltd. And NSIL would be exempted.

Source: PIB press release

-Tanvi Sharma, Associate, ShineWing India