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Outcome of 45th GST Council meeting held on 17th Sept. 2021

  1. Concessions on drugs used for COVID-19 treatment have been extended until 31st December 2021. Further, the list has been expanded to include more drugs which are now taxed at 5% GST.
  2. The council recommended changes in rate in respect of the supply of various goods and services. 
  3. Various clarifications have been provided in respect of the applicable rate of GST on goods and services.
  4. The council has changed/clarified the scope of certain exemptions related to the supply of services.
  5. On the issue of the inverted duty structure, the correction in the footwear and textile sector anomalies will take place from 1st January 2022.
  6. The matter of bringing petrol and diesel under GST was discussed. However, it was decided that this was not the time to bring petrol and diesel under the scope of GST. 
  7. The compensation cess collection will be extended beyond July 2022. To repay the total amounts borrowed last year and this year to pay the states, the compensation cess will be extended to March 2026.
  8. A Group of Ministers (GoM) has been formed to look into e-way bills, compliances, FASTags, use of technology, compensation cess, plugging of loopholes, and other issues.
  9. Another GoM has been formed to look into the rate rationalization of certain goods and services.
  10. The council has relaxed the requirement of filing of FORM GST ITC-04 to 6 monthly and annually for taxpayers having annual aggregate turnover in preceding financial year above Rs. 5 crores and upto Rs. 5 crores respectively.
  11. Retrospective amendment from July 17 in section 50(3) interest @18% to be levied only of if ineligible ITC availed & utilized instead of only availed.
  12. The unutilized balance in the CGST and IGST cash ledgers may be transferred between distinct persons.
  13. Circulars to be issued to remove ambiguity in the following matters: a) Clarification on the scope of intermediary services b) Clarification in relation to the term ' merely the establishment of distinct person ' in the last condition of export 
  14. Aadhar authentication is mandatory to file refund application and application of revocation of cancellation of registration
  15. Late fee for delayed filing of GSTR-1 to auto-populated in net GSTR-3B 
  16. GST refunds will be made to the bank account linked with the same PAN of the registered GSTN.
  17. Rule 59(6) will be amended to provide that GSTR-1 will not be allowed to furnish if GSTR-3B for the preceding month has not been furnished.
  18. Rule 36(4) is to be amended after notification to restrict availment of ITC to the extent available in Form GSTR-2B.

 

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