Bd Bg (1)

Blogs

39th GST Council Meeting


March 19, 2020

Key Highlights Of 39Th GST Council Meeting

39th GST Council Meeting

39th GST Council meet was held on March 14, 2020 at New Delhi. The council was chaired by the Union Finance Minister Mrs. Nirmala Sitaraman, which was also presided by the Minister of State for Finance & Corporate Affairs, Mr. Anurag Thakur.  The meeting was attended by finance ministers of different states and Union Territories, alongside other senior officials. The following segments under GST were the basis of discussion of the 39th GST council…

  • GST return system and E-invoicing rescheduled
  • GST Rates have been amended with effect from April 1, 2020
  • GSTR 9 and GSTR 9C Extended to June 30, 2020 for FY 2018-19
  • Revision of Due Dates of GSTR Filing

GST return system and E-invoicing rescheduled:  

  • Government has changed the commencement of GST return system to October 1, 2020
  • The carrying out of E-invoicing and QR code has been delayed to October 1, 2020 as well
  • The current GST return systems namely GSTR1, GSTR 2A and GSTR 3B will continue to be in practice till September 2020

GST Rates have been amended with effect from April 1, 2020:

  • The disarrayed duty structure has necessitated the government to increase the rate of GST on mobile phones and certain parts from 12% to 18%.
  • Matches which are handmade were GST rated at 5% and machine made at 18%. The government has restructured and made all kinds of manufacturing under a GST rate of 12%
  • The GST rates of aircraft services under Maintenance, Repair and Overhaul (MRO) has been revised from 18% to 5% with full ITC 

GSTR 9 and GSTR 9C Extended to June 30, 2020 for FY 2018-19:

  • The cut-off date for AR filing of GSTR 9 and GSTR 9C have been extended and the turnover limit has been extended from RS.2 Cr to RS.5 Cr for mandatory filing of Annual Return
  • For those taxpayers who have less than RS.2 Cr of annual turnover sill not have any late fee levied for GSTR filing of FY 2017-18 and FY 2018-19

Revision of Due Dates of GSTR Filing:

  • Government has waived the due date of GSTR 1 filing for FY 2019-20 for those taxpayers who could not opt for the special Composition Scheme. For this, the taxpayers should fill and submit the Form CMP-02
  • GSTR 3B filing has been extended to March 24, 2020 for those taxpayers coming in the specified business regions of the Union Territory of Ladakh

Other Important Decisions of the Council:

  • Net tax liability will be the determining factor for the interest applied on delayed GST payment which shall be applied to the ones since July 1, 2017
  • In order to understand the basic details and keep a clear channel of the supplier with whom taxpayers do business, the latter shall be introduced to a new scheme called ‘Know Your Supplier’ 
  • Taxpayers who have cancelled their GST registration till March 14, 2020 can withdraw the same by filing an application, the window of which is open till June 30, 2020
  • The time limit has been extended to March 31, 2021 for consumers on account of finalization of E-Wallet scheme 
  • For GST corporates who are facing bankruptcy get a special GST procedure during the CIRP period
  • For taxpayers of Dadra & Nagar Haveli and Daman & Diu, a transition plan is framed till May 31, 2020 because of the merger occurred in January 2020
  • Bulk processing of refund claims for the advantage of the exporters
  • The IGST and cess exemptions currently in existence on the imports will continue till March 31, 2021

The Ministry of Finance has decided that the Chairman of Infosys Mr. Nandan Nilekani will present the progress updates regarding the GST IT systems in the upcoming three GST Council meetings. It has to be inferred that the 39th GST council outcomes harmonized well with the contemplations of the onlookers. 
It is generally commented that the approach of the GST council would make the business market to clasp changes in an attuned pattern.

Tags
Related Blogs