42nd GST council meeting was held today on 05.10.2020. Key highlights of the meeting are as under:
1. Enhancement in features of return filing: In the 39th GST council meeting it was held that instead of bringing in new GST returns the current GST returns would be upgraded. In relation to same following has been recommended by the council:
(i) Due date for furnishing GSTR 1 by quarterly return taxpayers would be revised to 13th of the next month succeeding quarter w.e.f. 01.01.2021 from the current due date of last day of the month succeeding quarter.
(ii) Auto-population of GST liability from own GSTR 1.
(iii) Auto-population of input tax credit from suppliers’ GSTR-1s through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021.
(iv) FORM GSTR 1 would be mandatorily required to be filed before FORM GSTR3B w.e.f. 01.04.2021.
(v) The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.
2. Quarterly filing of GSTR 3B: As a further step towards reducing the compliance burden particularly on the small taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021.
Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto generated challan.
Thus, here it is important to note that only filing of GSTR 3B has been made quarterly still the “tax needs to be paid on monthly basis” for the first two months of the quarter which could be 35% of the total cash liability for that month.
It has been mentioned that tax needs to be paid by auto generated challan, now it will be interesting to see how challan would be auto generated as GSTR 1 needs to be filed quarterly.
3. HSN/ SAC requirements in GSTR 1 w.e.f. 01.04.2021 as under:
a. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;
b. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto Rs. 5 crores;
c. Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.
4. Refund to be paid/disbursed in a validated bank account linked with the PAN &Aadhaar of the registrant w.e.f. 01.01.2021.
5. To encourage domestic launching of satellites particularly by young start-ups, the satellite launch services supplied by ISRO, Antrix Corporation Ltd. and NSIL would be exempted.
6. Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap.
7. Centre is releasing compensation of ₹ 20,000 crore to States today towards loss of revenue during 2020-21 and an amount of about ₹ 25,000 crore towards IGST of 2017-18 by next week.
To read full Press release of 42nd GST council meeting CLICK HERE or you can read it on twitter. The next meeting will be held on 12.10.2020.
However, this meeting did not discuss about refund of late fees which has been paid by people and later on waived by GST department for late filing of GST return between July 2017 to January 2020.
Comments 5