43rd GST Council Meeting Highlights
43rd GST Council Meeting was held via video conferencing in New Delhi and was presided over by FM Nirmala Sitharaman. The meeting also includes State and UT Finance Ministers, as well as senior officers from the Union Government and the states.Here are the 43rd GST Council Meeting Highlights.
A) Everything you need to know about the Annual Returns
The following changes will be made to the Annual Return for the Fiscal Year 2020-21
a) Filing of annual return in FORM, GSTR-9 / 9A will be optional for taxpayers with an annual aggregate turnover of up to Rs 2 Crore
b) Filing of reconciliation statement in FORM GSTR-9C will be required for taxpayers with an annual aggregate turnover of more than Rs 5 Crore.
c) Instead of having it certified by chartered accountants/cost accountants, taxpayers would be able to self-certify the reconciliation statement (GSTR 9C).
It appears that the Forms GSTR 9 & GSTR 9C for FY 2020-21 will be notified very soon, but without the area for CA Certification.
B) A Notice to Pay interest even after having sufficient credit.
The retrospective amendment is made in section 50 of the Act with effect from 01 July 2017 to charge interest only on the net cash liability component.
Interest under GST has been a hotly debated topic. When a taxpayer pays GST, he is entitled to an ITC credit and must pay the remaining amount in cash. Section 49 of the CGST Act stated unequivocally that interest would be charged on the delayed payment on the cash portion only. However, GST departments across the country charged interest on even the portion of the ITC Credit available to taxpayers and already paid to the government.
C) Relaxation to file GSTR-3B for March 2021 & April 2021
- Relaxation for taxpayers in filing Form GSTR-3B monthly/quarterly returns:
|Up to 5 Cr||> 5 Cr||Is interest applicable from the original due date?||Is the late fee applicable|
|March 2021||20th June 2021||5th May 2021||Yes||No|
|April 2021||5th July 2021||4th June 2021||Yes||No|
|May 2021||20th July 2021||5th July 2021||Yes||No|
D) File GSTR-3B between July 2017 to April 2021 to avail Amnesty Scheme
Amnesty Scheme- Amnesty Scheme to provide taxpayers with relief from late fees for pending returns from July 2017 to April 2021
(Maximum late Fee of Rs.500 for nill return and Rs.1000 for other than nill return)
But ensure to file GSTR-3B before 31 August 2022
E) Exemption for donations
Donating to the government or on the certified recommendation of state authority to any relief agency are exempted up to 31.08.2021:
|Donate What||Donation To Whom|
|Medical Oxygen||To The Government|
|Oxygen Concentrators||To Any Relief Agency On Recommendation Of State Authority|
|Other Oxygen Storage And Transportation Equipment,||“Free Of Cost” For Free Distribution:|
|Certain Diagnostic Markers Test Kits|
F) Benefits to real estate Developers?
A Big Relief to you then. Landowner promoters could use the GST credit charged to them by developer promoters for such apartments that are later sold by the land promoter and on which GST is paid.
H) GST rate
GST Rates of 12% to apply on parts of sprinklers/drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) to apply even if these are sold separately.
Levy of IGST on to be laid down soon on repair value of goods re-imported after repairs
GSTR- 1 filing dates relaxation.
The taxpayer has been given relief to file a return for the month as per the following dates
|Tax period||Relaxation||Tax period||Relaxation|
|GSTR-1/ IFF Due date||May 2021||28 June 2021||GSTR-4||FY 2020-2021||31 July 2021|
|Credit restriction under rule 36(4)|
April, May, and June,
|No restriction||ITC-04||QE March 2021||30 June 2021|
The agenda of the meet also mentions-It is important to note that it appears that this amnesty is only for GSTR 3B delays and not for GSTR-1 delays. If this is the case, in the end, it will not be very beneficial. The levy of IGST on the repair value of goods re-imported after repairs will be established soon.
A 12% GST rate will be applied to parts of sprinklers/drip irrigation systems falling under tariff heading 8424 (nozzles/laterals), even if they are sold separately. It should be noted that the DGGI conducted massive search operations in West Bengal on Flour Mill Owners who were contesting the GST Rate to be applied. It is now critical to determine whether the amendment is prospective or retroactive.