The 39th GST Council meeting has been concluded on 14th March 2020 in New Delhi in the chairmanship of Union finance minister Nirmala Sitharaman and other panel ministers.
Changes in GST rates on supply of goods and services:
- Increase in GST rate on Mobile Phones and specified parts from 12% to 18%.This decision was taken to avoid difficulties due to the inverted duty structure.
- GST rate on all types of matches (Handmade and other than Handmade) has been rationalised to 12% (from 5% on Handmade matches and 18% on other matches).
- Reduction in GST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC.
Note: All these rate changes will come into effect from 01 April 2020.
Interest on delayed payments:
- Interest for delay in payment of GST to be charged on the net tax liability
(Retrospective effect from 01.07.2017)
Extension for Revocation of Cancellation of Registration:
- For Taxpayers where registrations have been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filled up to 30.06.2020.
- This extension of period of application is a one-time measure to facilitate those who want to conduct business.
- Decisions regarding GSTR-9 and 9C:
- Now, GSTR-9C for the FY 2018-19 is not mandatory for those taxpayers whose aggregate turnover is below 5 crores. (previously Rs.2 crore)
- Due date for filing of GSTR-9 and 9C for the FY 2018-19 is extended to 06.2020
- Late fees not to be levied for taxpayers whose aggregate turnover is below Rs. 2 crores while filing GSTR-9 and 9C for the FY’s 2017-18 and 2018-19.
Deferment for implementation of New GST return system:
- Existing system of furnishing GSTR-1 and GSTR-3B will be continued till September, 2020.
Other Deferments and exemptions:
- Certain class of registered persons (insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.) to be exempted from issuing e-invoices or capturing dynamic QR code.
- Implementation of e-invoicing and QR Code extended to 01.10.2020.
- E-Wallet scheme extended up to03.2021
- Present exemptions from IGST and Cess on the imports made under the AA/EPCG/EOU schemes extended up to 03.2021.
Waiver and extension of due dates:
- GSTR-1 for 2019-20 to be waived for taxpayers who could not opt for availing the option of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02.
- For registered persons with principal place of business in the Union territory of Ladakh due dates of GSTR-3B for the month of July, 2019 to January, 2020 extended till 24th March, 2020.
- A new facility called ‘Know Your Supplier’ to be introduced to enable every registered person to have basic information about the suppliers with whom they conduct or propose to conduct business.
- A special procedure is being prescribed for registered persons who are corporates undergoing the corporate insolvency resolution process (CIRP), to enable them to comply with the provisions of GST Laws during the CIRP period under IBC,2016.
- 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.
- Refund claims will be processed in bulk and allowed across financial years to facilitate exporters.
- Seeking information return from Banks
- To curb fake invoicing and fraudulent passing of ITC, restrictions 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.