GST Council Meeting: 05 Oct 2020

The outcome of the 42nd GST Council meeting, held today through video conferencing is as follows:

The CG shall disburse the compensation cess collection, amounting to ₹ 20,000 crores, to the states tonight towards the revenue loss for FY 2020-21. Moreover, the states’ share of IGST collection of FY 2017-18, amounting to approx. ₹ 25,000 crores, shall also be disbursed by next week.Taxpayers with aggregate turnover < ₹ 5 crores shall be allowed to file returns (both FORM GSTR – 1 and FORM GSTR – 3B) on a quarterly basis from January, 2021 onward. However, such taxpayers will have to pay at least 35% of the net cash tax liability of the last quarter in the first 2 months of a quarter using an auto-generated challan, and adjust the difference in the 3rd month of the quarter while filing the return.The requirement for declaring HSN codes/ SAC in tax invoices and FORM GSTR – 1 has been revised w.e.f. 01 April, 2021 as follows –Taxpayers with aggregate turnover > ₹ 5 crores – 6 digitsTaxpayers with aggregate turnover =< ₹ 5 crores – 4 digitsFor certain class of supplies to be notified later – 8 digitsAs discussed in the 39th meeting of the Council, an incremental approach was recommended to incorporate the features of the new return system in the present FORM GSTR – 1/ 3B system. The following roadmap has been recommended by the Council in this regard today –The present system of FORM GSTR – 1/ 3B shall be extended till 31 March, 2021 and the GST laws shall be amended to make this system as the default return filing system.W.e.f. 01 January, 2021 –Due date of furnishing quarterly FORM GSTR – 1 shall be revised to the 13th day of the succeeding month.Output tax liability in FORM GSTR – 3B shall be auto-populated on the basis of FORM GSTR – 1 filed by the taxpayer.Input tax credit in FORM GSTR – 3B of monthly filers shall be auto-populated on the basis of FORM GSTR – 2B.W.e.f. 01 April, 2021 –Input tax credit in FORM GSTR – 3B of quarterly filers shall be auto-populated on the basis of FORM GSTR – 2B.FORM GSTR – 1 shall be mandatorily required to be filed before FORM GSTR – 3B, in order to ensure the system of auto-population as mentioned above.01 January, 2021 onwards, refund to be paid in a validated bank account linked with PAN and Aadhaar.DSC is no more mandatory for filing refund applications. It can be signed through Aadhaar authentication as well.To encourage domestic launching of satellites by young start-ups, the satellite launch services supplied by ISRO, Antrix Corporation Ltd. and NSIL would be exempted.Levy of compensation cess shall be extended beyond the transition period of 5 yrs. ending in June, 2022, as mentioned in the GST(CS) Act, 2017. The Act shall be amended accordingly.

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Scroll to top
Would love your thoughts, please comment.x