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Key Recommendations of 42nd GST Council Meeting |
Dear All,
The GST Council in its 42nd meeting held on 05 October 2020 through Video Conferencing (under the Chairmanship of the Hon’ble Finance Minister), has made recommendations in respect of changes in certain law, procedures and returns.
We have hereinbelow summarized the key recommendations as mentioned in the Press Release issued pursuant to the meeting dated 05 October 2020:
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Headings |
Recommendations |
| Enhancement in features of return filing |
· Auto-population of liability from the GSTR-1 filed by the taxpayer w.e.f. 01 January 2021; and · Auto-population of Input Tax Credit (‘ITC’) from suppliers’ GSTR-1 through GSTR-2B w.e.f. 1 January 2021 (for monthly filers) and 1 April 2021 (for quarterly filers);
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| Ease of Compliances | a. Earlier recommendation pertaining to allow filing of returns on a quarterly basis with monthly payments by taxpayers (whose Aggregate Annual Turnover (‘AT’) < INR 5 crore) is to be implemented w.e.f. 01 January 2021
b. For the first 2 months of the quarter, such taxpayers have option to pay 35% of the net cash tax liability of the last quarter using an auto generated challan |
| Revised requirement of declaring HSN/SAC
(w.e.f. 01 April 2021) |
a. 6 digits level HSN/ SAC – for taxpayers with AT above INR 5 crores
b. 4 digits level HSN/ SAC for B2B supplies – for taxpayers with AT up to INR 5 crores c. Government would have power to notify 8 digit HSN/ SAC on notified class of supplies by all taxpayers |
| Others | d. Levy of Compensation Cess to be extended beyond the transition period of 5 years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap
a. Refund to be paid/ disbursed in a validated bank account linked with the PAN and Aadhaar of the taxpayers w.e.f. 01 January 2021 |