The GST Council’s decision in its 39th meeting, held on 14th March,2020, are as under;
1. Interest to be charged on Net Cash Liability. It has been proposed with retrospective amendment w.e.f 01.07.2017.
This is the biggest move of the GST Council in as much as entire trade was effected by the same. Further, various jurisdictional High Courts were flooded with writs for such excess demand and recovery.
2. Existing filing of GSTR-3B and GSTR-1 to be continued till 30.09.2020.
3. Relaxation for filing of GSTR-9C (Reconciliation Statement) for the FY 2018-19 upto aggregate turnover of Rs. 5 crores.
4. Due date for filing the GSTR-9 and GSTR-9C for FY 2018-19 is extended upto 30.06.2020.
5. Late fees to be waived for delayed filing of GSTR-9 and GSTR-9C for FY 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.
6. One time filing of application for revocation of cancellation of registration up to 30.06.2020. It has been extended to tax payers who got registration cancelled registration till 14.03.2020.
A welcome move of the GST Council and will relieve various tax payers as the law being new and cancellation of GST registration in initial years should not have been exercised. Rather, a cooling period should have been given.
7. For FY 2019-20, requirement of filing of GSTR-1 will be waived off for the persons who could not opt for special composition scheme under notification No. 2/2019-CT (Rate) (in form CMP-02).
8. Approval finally given for “Know your Supplier” scheme.
9. Implementation of e-invoicing and QR Code to be extended to 1st October,2020.
There was a chaos in entire India in as much as most of the industry was not fully prepared and expected for a deferment to a new date.
10. Extension of the time to finalize e-Wallet scheme up to 31st March,2021.
This scheme has been pushed hard by various industry chambers as well as DGFT. Even, in initial GST Council’s meeting it was slated to be brought by the end of 2018 but nothing perspired till the date.
11. Extension of exemptions from IGST and Cess on the imports made under the AA/EPCG/EOU till 31st March,2021.
This was very much anticipated as the need of extending such an exemption to exporters was strongly insisted by all stakeholders in the GST Council and was adopted in the 22nd meeting held on 6th October,2017. This was finally notified for the first time on 13th October,2017. Thereafter, such an exemption is being extended from time to time.
Amendments in CGST Rules:
a. 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);
b. ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero rated supplies;
This will be closely awaited step as the quantum of ceiling limit can be a very crucial factor for the entire trade.
c. to allow for refund to be sanctioned in both cash and credit in case of excess payment of tax;
d. to provide for recovery of refund on export of goods where export proceeds are not realized within the time prescribed under FEMA; and
e. to operationalize Aadhaar authentication for new taxpayers.
a.GST rate of tax on mobile phones and specified parts have been enhanced from 12% to 18%.
India being one of largest consumer of mobile phones, this rate change will have more tax collection as well as mobile phone prices shooting in short time.
b. Maintenance, Repair and Overhaul Services on Aircraft will have reduced tax rate at 5%.
This long awaited change in tax rate from 18% to 5% will boost the industry which is already struggling for last some time and pandemic of covid-19 has also added fuel to their negative graph.