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Updates of 39th GST Council Meeting Decisions

  1. Extension of due date for filling the annual return and reconciliation statement in Form GSTR 9 and GSTR 9C for financial year 18-19 to 30.06.2020 vide notification no 15/2020 dated 23rd March 2020.
  2. Exemption is provided to file Reconciliation statement in Form GSTR 9C for the foreign Airline companies vide notification no 09/2020 dated 16th March 2020.
  3. A special procedure is being prescribed for registered person who are corporate debtors under the provision of the Insolvency and Bankruptcy code, 2016 to enable them to comply with the provisions of GST law (like registration, return and Input tax credits) during CIRP period (corporate insolvency resolution process). The procedure is provided vide notification no 11/2020 dated 21st march 2020.
  4. A special procedure recommended for registered person in Dadar and Nagar Haveli & Daman and Diu during transition Period, consequent to the mergers of UTs w.e.f. 26.01.2020, and transition must be completed by 31.05.2020. The procedure is provided vide notification no 10/2020 dated 21st March 2020.
  5. Extension of due dates of Form GSTR 1, GSTR 3B and GSTR 7 for the period of July 2019 to February 2020 till 24th march 2020, having principal place of business in the union territory of Ladakh or Jammu and Kashmir through notification no 20/2020 to 26/2020 dated 23rd March 2020.
  6. Date of implementation of E-invoicing and generating QR Codes deferred till 1.10.2020, Further, Exemption to issue E-invoice is provided to the Insurance Company, banking company, Financial Institution, Non -banking financial Institution, GTA service provider, Passenger transportation services etc. The notification to give impact to this amendment is issued on 21st March 2020 vide notification no 13/2020 and 14/2020.
  7. Present system of monthly returns GSTR 1 and GSTR 3B shall continue till September 2020 and provided due date of filing said returns for the period April to September 2020 through notification no 27/2020 to 29/2020 dated 23rd March 2020.
  8. Notification no 12/2020 dated 21st March 2020 issued in regards to the composition dealers who instead of filing CMP-08 had filed GSTR 3B for the year 2019-20, shall not be required to file GSTR 1 and CMP 08 again.
  9. Amendments to the CGST rules through notification no 16/2020 dated 23rd March 2020:

    - The provision inserted to authenticate Aadhaar for new GST registrants, which is applicable to the Individuals, all types of authorized Signatories, Managing and Authorized partners and Karta of HUF.

    Exception to this rule is provided via notificationno 17/2020 dated 23rd March 2020, which excludes person who are not resident of India. Provided also that in case any person does not hold Aadhaar number, he will be provided with an alternative or viable option for the identification.

    Notification no 18/2020 and 19/2020 dated 23rd March 2020 is issued to provide the date of applicability of Aadhaar authentication as 01.04.2020.

    If person applying for registration fails to authenticate its Aadhaar Number then registration shall be granted only after physical verification of the principle place of business in the presence of the said person, not later than sixty days from the date of application.

    Rule 25 of CGST Rules 2017 shall also be substituted which says that after such verification the officer in charge shall upload the verification report along with the photograph in Form GST REG 30 within 15 days of such verification.

    Procedure for reversal of ITC in respect of capital goods partly used for taxable supplies and partly for exempt supplies is amended in certain cases.

    Exemption to file annual return and Reconciliation statement in Form GSTR 9 and GSTR 9C for the taxpayers having aggregate turnover less than INR 5 crore for financial year 18-19.

    Any registered person who has claimed refund of any amount paid as tax wrongly paid or paid in excess for which debit has been made from the electronic credit ledger, the said amount, if found admissible, shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03.

    Ceiling to be fixed for the value of Zero rated supply for calculation of refund by amending meaning of zero rated supplies of goods.

    To allow refund to be sanctioned in both cash and credit in case of excess payment of tax. If the proper officer is satisfied that a refund is due and payable to the applicant, he shall make an order in FORM RFD-06 sanctioning the amount of refund to be paid, in cash, proportionate to the amount debited in cash against the total amount paid for discharging tax liability for the relevant period and shall issue FORM GST PMT-03 re-crediting the said amount as Input Tax Credit in electronic credit ledger.

    With effect from 23.10.2017, benefit of the notifications shall not be considered to have been availed only where the registered person has paid Integrated Goods and Services Tax and Compensation Cess on inputs and has availed exemption of only Basic Customs Duty (BCD) under the said notifications.

    Recovery of refund of unutilised input tax credit or integrated tax paid on export of goods where export proceeds not realised:

    Where any refund of unutilised input tax credit on account of export of goods or of integrated tax paid on export of goods has been paid to an applicant but the sale proceeds in respect of such export goods have not been realised, in full or in part, in India within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), including any extension of such period, the person to whom the refund has been made shall deposit the amount so refunded, to the extent of non-realisation of sale proceeds, along with applicable interest within thirty days of the expiry of the said period.

    Where sale proceeds, or any part thereof, in respect of such export goods are not realised by the applicant within the period allowed under the Foreign Exchange Management Act, 1999 (42 of 1999), but the Reserve Bank of India writes off the requirement of realisation of sale proceeds on merits, the refund paid to the applicant shall not be recovered.

    The amount recovered shall be refunded by the proper officer, to the applicant to the extent of realisation of sale proceeds, provided the sale proceeds have been realised within such extended period as permitted by the Reserve Bank of India.
  10. Clarification shall be issued for the following issues:
    - GST rate on mobile phones and specified parts increased from 12% to 18%.
    - GST rate of all kind of matches shall be taxed at single rate 12%, earlier handmade matches were taxed 5% and other matches 18%.
    - GST rate on maintenance, repair and overhaul (MRO) Services in respect of aircraft is reduced from 18% to 5% with full ITC. The place of
       supply for B2B MRO services is changed to Place of service recipient.

    - Interest for delay in payment of GST to be charged on the net cash liability w.e.f. 01.07.2017.

    - Where Registration had been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filled up to 30.06.2020.
       Period can be extended for those who want to conduct business.

    - Late fees waived off for delay in filing GSTR 9 and GSTR 9C for taxpayers having aggregate turnover less than INR 2 crore for financial year
       2017-18 and 2018-19. Notification yet to be issued for giving effect this amendment.

    - A new facility ‘know your supplier’ to be introduced so that every registered person should have basic knowledge of their supplier.
    - Bunching of GST refund across two financial years is now allowed to facilitate the exporters.

    - Extension of time to finalise e-wallet scheme and present exemptions from IGST and cess on the import made under AA/EPCG/EOU
      Schemes up to 31.3.2021.
  11. Below is the list of certain amendments recommended for which notification giving effect is yet to be issued by the board:
    - Issues related to refunds and apportionment of ITC in case of business reorganisation through circular no. 133/03/2020 dated 23rd march 2020.
    - Appeals during non-constitution of the Appellate Tribunal
    - 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 through circular no. 134/03/2020 dated 23rd march 2020.
  12. In order to smooth the process, linking of outward supplies Form GSTR 1 with to the liability of Form GSTR 3B and ITC in GSTR 3B reflected with GSTR 2A and implementation of Aadhar authentication is also required.
  • Capacity of IT system would have increased from 1.5lakh taxpayers to 3 lakh taxpayers.
  • Shri Nandan Nilekani will be attending next three Council meetings and update the status of decisions taken and assist in taking decisions on technology related issues.
  • To increase manpower and hardware so that technology related issues reduced maximum.
  • GST council expects these initiatives to be implemented by 31st July, 2020.