39 th GST Council Meeting Highlights

  • Due dates extended for GSTR-9 and GSTR-9C – The due date for filing GSTR – 9 and GSTR – 9C for the FY 2018-19 has been extended from 31.03.2020 to 30.06.2020. Relaxation in filing of GSTR-9C for the FY 2018-19 for the taxpayer having aggregate turnover below Rs.5 crore.
  • Deferment of the new GST return system and e-Invoicing – The implementation of the new GST return system, E-invoicing and QR Code has been deferred to 1st October 2020. The present return system (GSTR-1, GSTR-2A and GSTR-3B) will be continued until September 2020.
  • Interest on delayed payments – Now, the interest on delay in payment of GST shall be collected on net cash liability (Gross Liability – Input credit available) only w.e.f 1st July 2017.
  • Know your supplier – A new facility called “Know your supplier” to be introduced to get some basic information about your supplier.
  • Amendment to revocation of cancellation – Taxpayers who have cancelled their GST registration till 14th March 2020 can file an application for cancellation of registration. The window to fill this application is available till 30th June 2020. The extension is a one-time measurement to facilitate those who want to continue conducting the business.
  • Fake ITC – In order to curb passing of fake or fraudulent ITC, restriction shall be imposed on passing of ITC in case of new registrations, before physical verification of premises and financial KYC of registered person.
  • Changes in GST rates –
  1. Mobile Phones and specified parts – from 12% to 18
  2. Match sticks to be rationalised to 12% (from 5% on handmade and 18% on others)
  3. Maintenance repair and overhaul service of Aircraft – 18% to 5% with full ITC
  4. All these rate changes will come into effect from 1st April 2020
  • Late fees waiver of Annual return and reconciliation statement – Late fees to be waived for delay in filing of GSTR-9 and GSTR-9C for FY 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 Crore.
  • Exemptions under IGST – Extension of the present exemptions from IGST and cess on the Imports made under AA/EPCG/EOU schemes up to 31st March 2021.
  • Refund –
  1. Allow for the refund to be sanctioned in both cash and credit in case of excess payment of tax
  2. To implement recovery of refund sanction on export of goods where export proceed are not realized within the time prescribed under FEMA Act
  3. Currently refund claims can be filed using multiple periods within same financial year. Now it is proposed to allow filing of refund claim for multiple financial years
  4. Ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero-rated supplies