Recently, The GST Council in its 39th GST Council Meeting took the following decisions relating to changes in GST rates on supply of goods and services, law & procedures.
Law & Procedure:
1. 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)
2. Continuation of the existing system of furnishing FORM GSTR-1 & FORM GSTR-3B till September, 2020;
3. The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020.
4. Persons exempted from e-invoicing & QR code: Insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.
5. Extension of due dates for GSTR 9 & 9C: For FY 2018-19 till 30.06.2020.
6. Waiver of late fees for GSTR 9 & 9C: For FY 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.
7. Relaxation from furnishing GSTR-9C: For FY 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 5 crores.
8. Bunching of refund claims allowed across financial years to facilitate exporters.
9. Ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero-rated supplies;
10. To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on the passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person.
To correct the inverted duty structure on various items like Mobile phones, Footwear, Textiles, and Fertilizers rationalized the GST Rate on following goods or services:
1. Mobile Phones and specified parts presently attracting 12% to 18%.
2. GST rate on all types of matches (Handmade and other than Handmade) has been rationalized to 12% (from 5% on Handmade matches and 18% on other matches).
3. To reduce GST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC and to change the place of supply for B2B MRO services to the location of recipient.
Hope, it may be useful for you.
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Copy of Press Release Notes issued by the Ministry of Finance can be viewed by clicking at the links provided below:
|Recommendations of 39th GST Council Meeting on IT Roadmap||Press Release ID: 1606433||14/03/2020|
|Changes in GST rates on goods & services in 39th GST Council Meeting||Press Release ID: 1606432||14/03/2020|
|39th GST Council recommendations on Law & Procedures||Press Release ID: 1606430||14/03/2020|