Here are the key highlights of GST latest News according to 42nd GST meeting held –
- Meeting held under the Chairmanship of Mrs. Nirmala Sitharaman, Union Finance & Corporate Affairs Minister through video conferencing on 5 October 2020
- Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022
- States get richer – Centre to spend ₹ 20,000 crore towards States today against loss of revenue during 2020-21 and ₹ 25,000 crore towards IGST of 2017-18
- To enhance ease in doing business – the roadmap to file returns easily has been finalized. 2 major enhancements in GST portal shall be –
- Provide a view to a tax payer for the ITC available in his electronic credit ledger from all the available sources i.e. domestic supplies, imports and payments on reverse charge etc.
- Give a feature in the system so that the details of GSTR-3B can be seen by the tax payer through the data filed by his suppliers.
This means in future GSTR 1 will suffice the requirement as GSTR 3B will show data populated from GSTR 1.
- Also, in this gst latest news –
- Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13 of the month succeeding the quarter w.e.f. 01.1.2021;
- Roadmap for auto-generation of GSTR-3B from GSTR-1s by:
- Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and
- Auto-population of input tax credit from suppliers’ GSTR-1s 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;
- In order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1would be mandatorily required to be filed before FORM GSTR3Bw.e.f. 01.04.2021.
- The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.
- As a further step towards reducing the compliance burden particularly on the small taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented 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.
- Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1w.e.f. 01.04.2021 as under:
a. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;
b. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto Rs. 5 crores;
c. Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.
- Amendment to the CGST Rules: Variousamendments in the CGST Rules and FORMS have been recommended which includes provision for furnishing of Nil FORM CMP-08 through SMS.
- Refund to be paid/disbursed in a validated bank account linked with the PAN &Aadhaar of the registrant w.e.f. 01.01.2021.
- To encourage domestic launching of satellites particularly by young start-ups, the satellite launch services supplied by ISRO, Antrix Corporation Ltd. and NSIL would be exempted.