8 Key Takeaways from 42nd GST Council Meeting
42nd GST Council Meeting took place on 5th October 2020 via video conferencing, under the chairmanship of Union FM Smt. Nirmala Sitharaman.
Here are the 8 key takeaways from the 42nd GST Council Meeting:
1. Any taxpayer whose turnover is less than INR 5 Crores can file a quarterly return WEF 1st January 2021, although challan is the medium by which payment is to be made on monthly basis.
2. To enhance ease of doing business the GST council has recommended the following things:
• From 1st January 2021, the Due date of GSTR-1 will be extended to the 13th of the month succeeding the quarter for the quarterly taxpayers.
• The current GSTR-1 and GSTR-3B filing system will be extended to 31st March 2021.
• Roadmap to auto-generate GSTR-3B from GSTR-1 (Liability) and GSTR-2B (ITC)
• Mandatory filing of GSTR-1 before GSTR-3B from 1st April 2021 onwards to auto-populate GSTR-3B ITC and liability
• GST laws to be amended in order to make GSTR-1 and GSTR-3B as default return filing system.
3. The rules regarding the declaration of HSN code and SAC in invoices and GSTR Form-1 will also be revised WEF 1st April 2021.
• 6 digit HSN code or SAC for the taxpayer whose turnover exceeds INR 5 Crores.
• 4 digit HSN code or SAC for the taxpayer whose turnover is up to INR 5 Crores.
• 8 digit HSN code or SAC for the notified supplies by all taxpayers
4. Various CGST rules and forms amendments are suggested by the GST council that includes provisions related to the Nil CMP-08 via SMS.
5. From 1st January 2021, the refund will be paid to the validated bank account of the taxpayer that is linked with PAN and AADHAAR.
6. Satellite launch services will be exempted to encourage the domestic launching of satellites by young start-ups.
7. To meet the revenue gap, the GST council has decided to extend the levy of compensation CESS beyond the transition period of 5 years.
8. In 42nd GST council meeting, the GST council has decided that the Central Government will release 2 different compensations
• INR 20,000 Crores to the State governments to meet the revenue losses during 2020-21.
• INR 25,000 Crores to the state governments towards IGST of 2017-18.
Disclaimer:
All information posted in the blog is merely for educational and informational purposes only taken directly from GST Council newsletter. It is not intended as a substitute for professional advice or legal advice.
