GST Updates after 39th GST Council Meeting

March 17, 2020 | Goods & Services Tax, GST, GST in India, Latest Update, MBG

Interest for delay in payment of GST

Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended retrospectively).

One-time measure for revocation of cancellation of registration

Where registrations have been canceled till 14.03.2020, the application for revocation of cancellation of registration can be filled up to 30.06.2020.

Amendments related to the Annual Return & Reconciliation statement

Central Government has to extend the Due date for filing of GSTR 9 (Annual Return) and GSTR 9C (Reconciliation statement) for the financial year 2018-19 to 30.06.2020. Relaxation for taxpayers having aggregate turnover below Rs. 5 crores from the furnishing of FORM GSTR-9C, for the FY 2018-19. Late fees not to be levied for delayed filing of the Annual Return and the Reconciliation Statement for the financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.

A new facility to be introduced – “Know Your Supplier”

A new facility called ‘Know Your Supplier’ to be introduced so as to enable every registered person to have some basic information about the suppliers with whom they conduct or propose to conduct business.

Deferment of E-invoice and QR Code:

The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020.

Continuation of the existing Returns system

Continuation of the existing system of furnishing FORM GSTR-1 & FORM GSTR-3B till September 2020. Deferment of e-wallet scheme Extension of the time to finalize e-Wallet scheme up to 31.03.2021; and Extension of the present exemptions from IGST and Cess on the imports made under the AA/EPCG/EOU schemes up to 31.03.2021.

Other new initiatives

Seeking information return from Banks;
To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on the passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person.

Amendments to the CGST Rules:

Procedure for reversal of input tax credit in respect of capital goods partly used for affecting taxable supplies and partly for exempt supplies under rule 43(1)(c);
Ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero-rated supplies;
To allow for refund to be sanctioned in both cash and credit in case of excess payment of tax;
To provide for recovery of refund on the export of goods where export proceeds are not realized within the time prescribed under FEMA; and
To operationalize Aadhaar authentication for new taxpayers.

Changes in GST Rates

GST Rate @ 18% on Mobile Phones & specified parts;
GST rate on all types of Matches (Handmade & other than Handmade) has been rationalized to 12%.
GST Rate @ 5% with full ITC on Maintenance, Repair, and Overhaul (MRO) services in respect of aircraft.

IT Recommendations by Shri Nandan Nilekani Following issues were discussed during presentation made by Mr. Nandan Nilekani on behalf of Infosys (IT implementation Partner) in 39^th GST Council meeting to improvise GSTN system for taxpayers:–

It was discussed to link statement of outward supplies in Form GSTR 1 & details of supplies reflected in Form GSTR 2A to the liability and Input Tax Credit (ITC) in Form GSTR 3B respectively
IT system is to be augmented to concurrently handle 3 lakh taxpayers (currently limit being 1.5 lakh taxpayers)
In order to tackle evasion and preventing the gaming of the system, implementation of Aadhaar authentication and spike rules to be initiated.

Last Updated: 17th March 2020 This article is contributed by: Vaibhav Matta Assistant Director, Taxation