39th GST Council meeting held on 14th March 2020 at New Delhi. Smt. Nirmala Sitharaman the Union Finance Minister chaired this meeting and she was expected to rationalize tax rates on five sectors, including mobile phones, footwear, and textiles, and defer implementation of the new return filing system and e-invoicing.
Here are the Highlights of 39th GST Council Meet:
1. Defer Implementation of the New Return Filing System and E-Invoicing –
-The implementation of e-invoicing and QR code has been deferred to 1st October 2020.
– Also, the implementation of a new GST return system has been postponed to 1st October 2020, till then the present Return System (GSTR-1, GSTR-2A & GSTR-3B) will be continued.
2. GST Rates Changed –
– In respect to Aircraft, GST on Maintenance, Repair and Overhaul (MRO) service is reduced from 18% to 5% with full ITC.
– To avoid difficulties due to the inverted duty structure GST on mobile phones and specified parts is increased from 12% to 18%.
– All types of matches have been rationalized to 12% GST (from 5% on Handmade matches and 18% on other matches)
Note: All these changes will come in effect from 01 April 2020.
3. Changes in Interest Calculation –
39th GST council decided the interest for delayed GST payment will be calculated on the net tax liability.
Note: This amendment will apply retrospectively from 1st July 2017.
4. Due Dates of GSTR 9 and 9C is Extended-
The deadline for GSTR-9 & 9C is extended to 30 June 2020 for FY 2018-19. Also, the turnover limit will be increased from Rs 2 crore to Rs 5 crore for mandatory annual return filing.
1. If the turnover is less than Rs 5 crore.
– Filing GSTR-9C is optional for the taxpayers having a turnover of less than Rs 5 crore.
2. If the turnover is less than Rs 2 crore.
– The taxpayers with an aggregate annual turnover of less than Rs 2 crore in FY 2017-18 and FY 2018-19 will not pay any late fee for delayed filing of GSTR-9.
5. Waiver and Extension of Due Dates
The due date of Form GSTR -1, GSTR-7 and GSTR-3B for July 2019 to January 2020 is extended till 24th March 2020 for taxpayers with a principal place of business in the Union Territory of Ladakh.
The GSTR-1 for 2019-20 will be waived for certain taxpayers who could not opt for the special composition scheme (notification No. 2/2019-Central Tax (Rate) dated 7th March 2019) by filing Form CMP-02.
6. “Know your supplier” Scheme-
A new scheme called “Know your Supplier” has been introduced to enable every Registered person (Taxpayer) to obtain some basic information about their suppliers with whom they transact or propose to do business.
7. Amendment to Revocation of Cancellation
Taxpayers who have cancelled their GST registration till 14th March 2020 can file an application for the revocation of cancellation. The window to fill this application is available till 30th June 2020.
Note: The extension is a one-time measurement to facilitate those who want to continue conducting the business.
1. Important change on GSTR-1:
The GST Council decided to stagger the GSTR-1 filing for taxpayers with:
- Turnover more than Rs 1.5 cr – to file before 10th of the following month
- Turnover up to Rs 1.5 cr – to file before 13th of the following month
- The GSTR-2A can be generated on 14th of the following month
2. The GST Council defers the proposal on the taxability of the economic surplus of brand owners of alcohol for human consumption.
3. The finalization of the e-Wallet scheme for consumers is extended till 31st March 2021.
4. A special GST procedure was prescribed during the CIRP period for the GST registered corporates who are undergoing insolvency/resolution procedures under IBC Code, 2016.
5. A transition plan is laid down till 31st May 2020 for the taxpayers belonging to Dadra and Nagar Haveli & Daman and Diu, due to the merger in January 2020.6. Refund claims will now be processed in bulk for the benefit of the exporters.
6. Present IGST and cess exemptions on the imports made under the AA/EPCG/EOU schemes will continue up to 31st March 2021.
Finance Minister Nirmala Sitharaman also said that a better GSTIN system to be ensured by Infosys by July 2020
What do you think about the latest GST news? Please comment below.
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