GST Council’s Recommendations on Law and
Procedure Related Changes
·
Measures for Trade facilitation
·
Deferment of E-invoice and QR Code
·
Deferment of e-wallet Scheme
·
Amendments to the CGST Rules
· Continuation of existing system of
furnishing FORM GSTR-1 & FORM GSTR-3B till September, 2020
·
Issuance of circulars
·
Other new initiatives
The 39th GST Council met under the
Chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman on 14 March 2020. The meeting was also attended by
Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides
Finance Ministers of States & UTs and seniors officers of the Ministry of Finance.
The GST Council has made the following recommendations on Law
& Procedures changes.
1.
Measures for Trade facilitation:
a.
Interest for delay in payment of GST to
be charged on the net cash tax liability w.e.f. 01.07.2017
(Law to be amended retrospectively).
b.
Where registrations have been cancelled
till 14.03.2020, application for revocation of cancellation of registration can
be filled up to 30.06.2020 (extension of period of application as one-time measure
to facilitate those who want to conduct business).
c.
Annual Return:
i.
Relaxation to MSMEs from furnishing of Reconciliation
Statement in FORM GSTR-9C, for the financial year 2018-19, for taxpayers
having aggregate turnover below Rs. 5 crores;
ii.
Due date for filing the Annual return and
the Reconciliation Statement for financial year 2018-19 to be extended to 30.06.2020;
and
iii.
Late fees not to be levied for delayed filing
of the Annual return and the Reconciliation Statement for financial year 2017-18
and 2018-19 for taxpayers with aggregate turnover less than Rs.
2 crores.
d.
A new facility called ‘Know Your Supplier’
to be introduced so as to enable every registered person to have some basic information
about the suppliers with whom they conduct or propose to conduct business.
e.
The requirement of furnishing FORM GSTR-1
for 2019-20 to be waived for taxpayers who could not opt for availing the option
of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated
07.03.2019 by filing FORM CMP-02.
f.
A special procedure is being prescribed
for registered persons who are corporate debtors under the provisions of the Insolvency
and Bankruptcy Code, 2016 and are undergoing the corporate insolvency resolution
process, so as to enable them to comply with the provisions of GST Laws during the
CIRP period.
g.
Extension of due dates for FORM GSTR-3B
for the month of July, 2019 to January, 2020 till 24th March, 2020 for
registered persons having principal place of business in the Union territory of
Ladakh. Similar extension is also recommended for FORM
GSTR-1 & FORM GSTR-7.
h.
Bunching of refund claims allowed across
financial years to facilitate exporters.
2. Deferment
of E-invoice and QR Code:
3.
Deferment of e-wallet Scheme:
a.
Extension of the time to finalize e-Wallet
scheme up to 31.03.2021; and
b.
Extension
of the present exemptions from IGST and Cess on the
imports made under the AA/EPCG/EOU schemes up to 31.03.2021.
4.
Continuation of existing system of furnishing
FORM GSTR-1 & FORM GSTR-3B till September, 2020;
5.
Other new initiatives:
6.
Issuance of circulars
in respect of:
a.
Clarification in apportionment of ITC in
cases of business reorganization under section 18 (3) of CGST Act read with rule
41(1) of CGST Rules;
b.
Appeals during non-constitution of the Appellate
Tribunal;
c.
Clarification on refund related issues;
and
d.
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.
7.
Amendments to the CGST Rules:
Key amendments are as below:
8.
Certain amendments to be carried out in
the GST laws.
Note: The recommendations of the GST Council have been presented in this release
in simple language for information of all stakeholders. The same would be given
effect through relevant Circulars/Notifications or amendment in GST laws which alone
shall have the force of law.