39th GST Council Meeting held on 14.03.2020

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39th GST Council Meeting held on 14.03.2020

Overview : 39th GST Council Meeting held on 14.03.2020

Changes in GST Rates

Sl. No.RecommendationRate of GSTEffective date
1Mobile phone and specified parts (currently taxed at 12%)18%1st April 2020
2All type of Matches (handmade and other matches) – Current rate for handmade is 5% and other matches is 18%12%1st April 2020
3ü Rate for Maintenance, Repair and Overhaul (MRO) services for aircraft

ü to change place of supply for B2B MRO services to the location of recipient.

ü Domestic MRO will also get protection due to 5% tax paid under section 3(7) of the Customs Tariff Act, 1975 on most imported goods (sent abroad for repairs) as this tax is not available as credit.

Changes related to Laws and Procedure

Sl. No.Proposal Category
1Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2018-19 to be extended to 30.06.2020 (earlier date for filing the said returns was 31.03.2020).
2Relaxation from furnishing Form GSTR 9C to taxpayers having aggregate turnover below Rs. 5 crores
3No Late fees for delayed filing of the Annual return for financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores
4Continuation of existing system of furnishing FORM GSTR-1 & FORM GSTR-3B till September, 2020
5Interest for delay in payment of GST (delay in filing of GSTR 3B) to be charged on the net cash tax liability (only on the portion which is paid in cash) w.e.f. 01.07.2017 (Law to be amended retrospectively).
6Where GST 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).
7A 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
8Extension 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.
9Bunching of refund claims allowed across financial years to facilitate exporters
10ü Deferment of E-invoice and QR Code for certain class of registered persons (insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.) to be exempted from issuing e-invoices or capturing dynamic QR code.

ü Date of implementation  of e-invoicing and QR Code to be extended to 01.10.2020

11To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person
12Circular to be issued in respect of –

a.    Clarification in apportionment of ITC in cases of business reorganization u/s 18 (3) of CGST Act read with rule 41(1);

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.

13Amendment to the CGST Rules –

a.    Procedure for reversal of ITC in respect of capital goods partly used for affecting taxable supplies and partly for exempt supplies under rule 43 (1) (c);

b.    Ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero rated supplies;

c.     to allow for refund to be sanctioned in both cash and credit in case of excess payment of tax;

d.    to provide for recovery of refund on export of goods where export proceeds are not realized within the time prescribed under FEMA; and

e.    to operationalize Aadhaar authentication for new taxpayers

For More Information

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