42th Council Meeting has been held on 5th October, 2020. In this meeting the council has made following recommendations:
Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarter w.e.f. 01-01-2021.
- It is mandatory to file GSTR-1 before filing GSTR-3B w.e.f 01-04-2021.
- GST liability in GSTR-3B will be auto-populated based on GSTR-1 filed w.e.f. 01-01-2021.
- Auto-population of input tax credit from suppliers GSTR-1 through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01-01-2021 and for quarterly filers w.e.f. 01-04-2021.
- The present GSTR-1/3B return filing system to be extended till 31-03-2021.
- Filing of GST return on quarterly basis with monthly payment for taxpayers having turnover less than INR 5 crore w.e.f 01-01-2021. Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto generated challan.
- Taxpayers with aggregate turnover of more than INR 5 crore need to mention 6-digit HSN code with effect from 01-04-2021 whereas taxpayers with aggregate turnover upto INR 5 crore need to mention 4 digit HSN code for B2B supplies.
- Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.
- Refund to be paid/disbursed in a validated bank account linked with the PAN and Aadhaar of the registrant w.e.f. 01-01-2021.
- Exemption from GST granted to the satellite launch services rendered by ISRO, NSIL and to promote startups.
- Imposition of Compensation Cess has been extended beyond the transition period of 5 years to meet the revenue gap.
Source: http://www.ascgroup.in/asc-admin/assets/ckeditor/uploads/42nd gst council meet20201006122920.pdf