UPDATES

GST Council in the 39th meeting held on 14th March, 2020 at New Delhi took decisions w.r.t

CHANGES IN GST RATES

*all the changes in rates effective from 1st April,2020

AMENDMENTS TO GST LAW & PROCEDURE

• 1. Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2018-19 to be extended to 30.06.2020
• 2. Relaxation from furnishing Form GSTR 9C to taxpayers having aggregate turnover below Rs. 5 crores
• 3. No Late fees for delayed filing of the Annual return & reconciliation statement for financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores
• 4. Continuation of existing system of furnishing FORM GSTR-1 & FORM GSTR-3B till September, 2020
• 5. Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended retrospectively)
• 6. Where GST registrations have been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filled up to 30.06.2020 (extension of period of application as one-time measure to facilitate those who want to conduct business)
• 7. A new facility called ‘Know Your Supplier’ to be introduced so as to enable every registered person to have some basic information about the suppliers with whom they conduct or propose to conduct business
• 8. Extension of due dates for FORM GSTR-3B for the month of July, 2019 to January, 2020 till 24th March, 2020 for registered persons having principal place of business in the Union territory of Ladakh
• 9. Bunching of refund claims allowed across financial years to facilitate exporters
• 10. The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020
  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
• 11. 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

• 12. Circular to be issued in respect of –

  • a. Clarification in apportionment of ITC in cases of business reorganization u/s 18(3) of CGST Act read with rule 41(1);
  • b. Appeals during non-constitution of the Appellate Tribunal;
  • c. Clarification on refund related issues; and
  • d. Clarification on special procedure for registered persons who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016, undergoing the corporate insolvency resolution process

• 13. Amendment to the CGST Rules –

  • a. Procedure for reversal of ITC 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;
  • 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



IT ROADMAP

• 1. To link statement of outward supplies in Form GSTR 1 to the liability in Form GSTR 3B
• 2. To link Input Tax Credit (ITC) in Form GSTR 3B to the details of supplies reflected in Form GSTR 2A
• 3. Nandan Nilekani to attend the next 3 meetings of the GST Council and update the status of implementation of the decisions taken by the Council and assist the Council in taking appropriate decisions on technology issues
• 4. IT system is to be augmented to concurrently handle 3 lakh taxpayers (currently limit being 1.5 lakh taxpayers)
• 5. In order to tackle evasion and preventing the gaming of the system, implementation of Aadhaar authentication and spike rules to be initiated.

Disclaimer:“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”