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18 March 2020

39th Meeting of the GST Council – Highlights

The GST Council has in its 39th Meeting held on 14-3-2020 taken many major decisions in respect of both GST rates and those involving law and procedures. Some of the important recommendations of the Council are highlighted below.

  • Mobile phones and specified parts – GST rates revised from 12% to 18%.
  • Matches (both handmade and others) to be taxed @ 12%.
  • Maintenance, Repair and Overhaul (MRO) services in respect of aircraft to be taxed @ 5% with full ITC. Further, the place of supply of B2B MRO services will be changed to the location of recipient.
  • Interest for delay in payment of GST to be charged on the net cash tax liability with effect from 1-7-2017. Law to be amended retrospectively.
  • E-invoicing and QR Code implementation to be extended to 1-10-2020.
  • 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.
  • Existing system of GSTR-1 and GSTR-3B to continue till September, 2020.
  • GSTR-1 for 2019-20 to be waived for specified taxpayers.
  • Due date for filing GSTR-9 and GSTR-9C for FY 2018-19 to be extended to 30-06-2020 from 31-03-2020.
  • Furnishing of GSTR-9C for the FY 2018-19, for taxpayers having aggregate turnover below Rs. 5 crores to be relaxed.
  • Late fees not to be levied for delayed filing of GSTR-9/GSTR-9C for FY 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.
  • 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.
  • Application for revocation of cancellation of registration can be filled up to 30-06-2020, where registrations have been cancelled till 14-03-2020.
  • Bunching of refund claims across financial years to be allowed to facilitate exporters.
  • Exemptions from IGST and Cess on the imports made under the Advance Authorisation / EPCG / EOU schemes to be extended up to 31-03-2021.
  • Special procedure to be prescribed for corporate debtors under the provisions of the IBC, 2016 who are undergoing the corporate insolvency resolution process, so as to enable them to comply with the provisions of GST laws during the CIRP period.
  • E-Wallet scheme to be finalized up to 31-03-2021.
  • 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), to be prescribed.
  • Ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero rated supplies.
  • CGST Rules to be amended to allow for sanction of refund in both cash and credit in case of excess payment of tax.
  • Recovery of refund to be made on export of goods where export proceeds are not realized within the time prescribed under FEMA.
  • ‘Know Your Supplier’ facility to be introduced to enable registered person to have some basic information about the suppliers.
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