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Minutes of 43rd GST Council Meeting

The 43rd GST council meeting was held on 28th May 2021, wherein Finance Minister has decided to exempt certain COVID – 19 relief material and certain drugs used to fight black fungus. Rationalisation of late fees by capping a maximum limit and extension of due dates, clarification on Annual return and reconciliation statement. Below is the synopsis of the meeting held:
  1. Import of COVID-related relief items and drugs used to fight black fungus, even if purchased or meant for donating to Govt. or to any relief agency upon recommendation of State authority, to be exempted from IGST till 31 Aug 2021.
  2. A Group of Ministers (GoM) shall be constituted to examine need for further reductions and decide on new rates in exemptions. The GOM shall give its report by 08.06.2021.
  3. GST rate on certain goods and services amended and provided clarifications like reduction of rates of certain medicines, exemption to fees charged by education board and mid-day meals sponsored by Government, etc.
  4. An Amnesty scheme is recommended to provide relief to taxpayers regarding late fees for pending returns. Late fees capped to maximum of INR 500 (INR 250 CGST and SGST each) per return for taxpayers having Nil liability and INR 1,000 (INR 500 CGST and SGST each) per return for other taxpayers.
  5. Rationalisation of late fee to reduce the burden on small taxpayers.
    Please click here to view the fee
  6. In addition to the relief measures already provided to the taxpayers vide notifications issued on 01.05.2021, the following further relaxations are being provided to the taxpayers:
    Please click here to view the relaxations
  7. Certain other relaxations provided so far in awake of COVID19
    >> Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.
    >> Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
    >> Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
    >> Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021.
    >> Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.
    >> Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, to be extended up to 30th June, 2021, subject to some exceptions.
  8. Simplification of Annual return of the FY 2020-2021:
    >>Filing of Annual return for small taxpayers having turnover less than 2 crores would be optional.
    >>Filing of reconciliation statement having turnover more than 5 crores would be mandatory and the reconciliation statement in GSTR 9C would be self-certified by the taxpayers instead of the chartered accountant.
  9. Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on net cash basis, to be notified at the earliest.
  10. GST Council recommended amendments in certain provisions of the Act so as to make the present system of GSTR-1/3B return filing as the default return filing system in GST.
All the relevant notifications or circulars giving effect to the amendments shall be issued soon.