39th GST Council Meeting: Key Takeaways
GST Council in the 39th meeting held on 14th March, 2020 at New Delhi took several mesures to resolve the issues being faced by trade and industry. Through this article we shall discuss key take aways from 39th GST Council meeting and how will they impact the industry as a whole.
GST Interest to be charged on the net cash tax liability
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). This is a big relief to the industry amid ongoing litigations. Many traders have recived notices for payment of interest on gross tax libility. Finally this issue has been resolved and a big desion has been taken in favour of tax-payers.
Application for revocation of cancellation of registration
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).
Various relief provided in Annual Retun & GST Audit
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 (Form GSTR-9) and the Reconciliation Statement for financial year 2018-19 to be extended to 30.06.2020;
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.
Deferment of E-invoice and QR Code
The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020.
Exemption from generation of e-invoices or capturing dynamic QR code
Certain class of registered persons including:
- insurance company,
- banking company,
- financial institution,
- non-banking financial institution,
- GTA, passenger transportation service
to be exempted from issuing e-invoices or capturing dynamic QR code.
Deferment of new return filing system
Physical verification of premises in case of new GST registrations
As per the press release of GST Council Meeting, Physical verification of business premises and and Financial KYC of registered person will be done before passing of the ITC in case of new GST registrations. This step is being taken by government in order to curb instances of fake invoicing and fraudelent passing of inout tax credit.
Change in GST Rates of Certain Commodities
A new facility called ‘Know Your Supplier Scheme’ to be introduced. This facility will provide every registered person basic information about the suppliers with whom they conduct or propose to conduct business.