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Recommendation in 42nd GST Council Meeting

Recommendation in 42nd GST Council Meeting

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

 

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