39th GST COUNCIL MEETING UPDATES

Ø THE 39th GST COUNCIL MEETING UPDATES

The 39th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 14.03.2020.

Ø  Here are the major decisions taken today (in Brief):

a better GSTN system should be ensured by Infosys by July 2020.

q  Changes in GST Rates

·         GST on mobile phones, specified parts increased to 18% from 12%.

·         GST on MRO (maintenance repair overhaul) services of aircraft slashed to 5% from 18%

·         GST on handmade, machine-made matchsticks rationalised to 12%

·         Delayed GST payment to attract interest on net tax liability from July 1.

·         GST on Maintenance, Repair and Overhaul (MRO) service in respect to aircraft was reduced from 18% to 5% with full ITC.

• Important change on GSTR-1:

The GST Council decided to stagger the GSTR-1 filing for taxpayers with:

·         Turnover more than Rs 1.5 cr -to file before 10th of the following month

·         Turnover up to Rs 1.5 cr -to file before 13th of the following month

·         The GSTR-2A can be generated on 14th of following month

q  GST Annul Returns:

·         The GSTR-9 & 9C deadline is extended to 30 June 2020 for FY 2018-19.

·         The turnover limit will be increased from Rs 2 crore to Rs 5 crore for mandatory annual return filing.

·         Filing GSTR-9C is optional for the taxpayers having the turnover less than Rs 5 crore.

·         The taxpayers with an aggregate annual turnover of less than Rs 2 crore in FY 2017-18 and FY 2018-19 will not pay any late fee for delayed filing of GSTR-9.

q  Amendment to revocation of cancellation

Taxpayers who have cancelled their GST registration till 14th March 2020 can file an application for revocation of cancellation of registration. The window to fill this application is available till 30th June 2020.

q  New GST return system and e-invoicing

·         The implementation of the new GST return system has been postponed to 1st October 2020.

·         The implementation of e-invoicing and the QR code has been deferred to 1^st October 2020.

q  Interest on delayed payments

·        Interest for delayed GST payment will be calculated on the net tax liability. This amendment will apply retrospectively from 1st July 2017.