The 42nd GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing today (5th October 2020). The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance & States.
Date of implementation: 1st January 2021
For 1st 2 months of the quarter- pay 35% of the net cash tax liability of the last quarter
Comments: The recipient of such taxpayers would be allowed to take credit only after 3 months which would lead to blockage of credit for them.
Comments: It will now be mandatory to have a validated bank account linked with PAN & Aadhar failing which the refund may be blocked
Date of implementation: 1st April 2021
Comments: There has been no discussion regarding implementation of proposed new returns viz. Sahaj, Sugam and Normal. It seems that government is planning to continue with GSTR 1 & GSTR 3B in foreseeable future
|Number of Digits of HSN Code||ATO||Type of Supply||Number of Digits of HSN Code|
|6||>5cr||B2B + B2C||4|
|4||>1.5cr to <=5Cr||B2B||2|
|0 to 1.5cr||0|
|8||Govt to have power to notify||No mention in Notn. 12/2017 (CT)|
Comments: The press release is silent on mentioning of HSN for B2C supplies for taxpayers with ATO up to 5cr. It is understood that the same shall be waived off and HSN shall be required only for B2B supplies
*ATO- Aggregate Annual Turnover
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|8 Recommendations of the 42nd GST Council Meeting||Release ID: 1661827||05/10/2020|