Dear All, The GST Council in its 39th meeting held on 14 March 2020, has made recommendations concerning changes in certain law, procedures, rate of tax etc. We have summarized herein below the key recommendations pursuant to the GST Council meeting dated 14 March 2020: A. Trade Facilitation Measures 1. Interest for delay in payment of GST to be charged on net cash tax liability with retrospective effect from 01 July 2017 2. Taxpayers having aggregate turnover below Rs. 5 crores to be relaxed from the requirement of furnishing Reconciliation Statement (i.e., GSTR 9C) for the FY 2018-19 3. Existing system of furnishing GSTR-1 and GSTR-3B to be continued till September 2020 4. Special procedure to be prescribed for registered persons who are corporate debtors under the Insolvency and Bankruptcy Code, 2016 and are undergoing corporate insolvency resolution process B. Extension of Due Dates 1. Due date for Annual Return (i.e., GSTR 9) and the Reconciliation Statement (i.e., GSTR 9C) for the FY 2018-19 to be extended till 30 June 2020 2. Date for implementation of e-invoicing and QR code extended to 01 October 2020. Further, certain class of registered persons (insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.) to be exempted from e-invoicing implementation 3. The time limit for finalizing e-Wallet scheme and current exemption from IGST and Cess on the import made under the AA/EPCG/EOU schemes to be extend upto 31 March 2021 C. Amendments in GST Law 1. Procedure to be prescribed for reversal of Input Tax Credit (‘ITC’) in respect of use capital goods for both taxable supplies and exempt supplies 2. Fixing of ceiling value of export supply for the purpose of refund calculation on zero rated supplies 3. Refund to be allowed in both cash and credit in case of excess payment of tax 4. Provision to be introduced for recovery of refund on export of goods where export proceeds are not realized within prescribed time under FEMA
D. Amendment in GST Rates
E. Clarificatory Circulars 1. Clarification in apportionment of ITC in cases of business reorganization 2. Appeals during non-constitution of the Appellate Tribunal 3. Clarification on refund related issues
F. New Initiatives 1. Seeking information return from banks 2. To curb fake invoicing and fraudulent passing of ITC, restriction to be imposed on passing of the ITC in case of new GST registrations before physical verification of premises and financial KYC of the registered person |
