Recommendations of 42nd GST Council Meeting Updates
Following are the recommendations discussed in council meeting held by video conferencing:
Relief towards revenue loss:
- Levy of compensation cess to be extended beyond the transition period of Five years i.e. beyond June’20.
- 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.
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:
- 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;
- 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
- 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
- The present return filing of GSTR1/3B structure system to be extended till 31.03.2021
Relief to taxpayers:
- Due date of furnishing quarterly GSTR-1 to be revised to 13th of the month succeeding the quarter w.e.f. 01.01.2021.
- 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
Revised requirement of declaring HSN/SAC w.e.f 01.04.2021:
- 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.
Others:
- Amendment in CGST rules and recommendation for provision for furnishing nil FORM CMP-08 through SMS.
- Refund to be paid in a validated bank account linked with PAN & Aadhar of registrants w.e.f. 01.01.2021
- 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, SW India