The 39th GST Council meeting was held on 14th March 2020 in New Delhi. The Union Finance Minister Mrs. Nirmala Sitharaman chaired this meeting and has taken the following important decisions on certain crucial issues under GST.
1. Deferment of new Return system and e-invoicing
The implementation of the new GST return system has been deferred till 1st October 2020. Additionally, the implementation of e-invoicing and the QR code has been deferred to 1st October 2020.
The current return system (GSTR-1, GSTR-2A & GSTR-3B) can be continued until September 2020.
2. Modifications in the GST charges
- GST on mobiles and specified parts was elevated from 12% to 18%. This decision was taken to keep away from difficulties because of the inverted duty structure.
- All forms of matches have been rationalised to a single GST charge of 12%. Until now, the handmade ones had been taxed at 5% and the remaining was taxed at 18%.
- GST on Upkeep, Repair and Overhaul (MRO) service in respect to aircraft was diminished from 18% to 5% with full ITC.
- All these rate modifications will be applicable from 01 April 2020.
3. Interest charges on delay in payments
Now, the interest charge for delayed GST will calculated on the net tax payable. This change is applicable from 1st July 2017 i.e retrospectively.
4. Extension for filing of GSTR-9 and 9C
The GSTR-9 & 9C deadline is prolonged to 30 June 2020 for FY 2018-19. Additionally, the turnover limit can be elevated from Rs 2 crore to Rs 5 crore for obligatory annual return submitting. Therefore, submitting GSTR-9C is optional for the taxpayers having the turnover lower than Rs 5 crore.
The taxpayers with an total annual turnover of lower than Rs 2 crore in FY 2017-18 and FY 2018-19 is not going to pay any late fees for delayed submitting of GSTR-9.
5. Know your Service provider/supplier
The new scheme known as ‘Know your Supplier’ has been launched in order that the taxpayers are informed concerning the basic particulars of the suppliers with whom they transact.
6. Waiver and extension of due dates
The GSTR-1 for 2019-20 can be waived for sure taxpayers who couldn’t go for the particular composition scheme (notification No. 2/2019-Central Tax (Rate) dated seventh March 2019) by submitting CMP-02.
The due date of GSTR-3B for July 2019 to January 2020 is prolonged until 24th March 2020 for taxpayers with a principal place of business within the Union Territory of Ladakh. Additionally, an analogous extension is provided for GSTR-1 and GSTR-7.
7. Change in revocation of cancellation
Taxpayers who’ve cancelled their GST registration until 14th March 2020 can file an application for revocation of cancellation of registration. The window to fill this is accessible until 30th June 2020. The extension is a one-time measurement to facilitate those that wish to proceed conducting the business.
8. Other Important Decisions taken
- Infosys Chairman, Mr Nandan Nilekani to current progress updates concerning the GST IT methods on the subsequent three GST Council conferences.
- The time limit for finalisation of the electronic-Wallet scheme for customers is prolonged until 31st March 2021.
- A particular GST process was prescribed throughout the CIRP period for the GST registered corporates who’re going through insolvency/resolution process as per IBC Code, 2016.
- A transition plan is laid down until 31.05.2020 for the taxpayers belonging to Dadra and Nagar Haveli & Daman and Diu, as a result of merger in January 2020.
- Refund claims will now be processed in bulk for the advantage of the exporters.
- Current IGST and cess exemptions on the imports made beneath the AA/EPCG/EOU schemes will remain continued till March 31st, 2021.