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.

Developments proposed

Date of implementation: 1st January 2021

  • Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the succeeding month
  • GSTR 3B to be pre filled as below:
    • Liability to be auto populated from GSTR-1 for both monthly and quarterly filers
    • ITC to be auto populated from GSTR 2B for monthly filers
  • For Taxpayers having ATO< 5cr would be allowed to file GSTR 3B (in addition to GSTR 1) on quarterly basis with monthly payments.

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.

  • Refund to be paid/disbursed in a validated bank account linked with the PAN & Aadhaar of the registrant

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

  • FORM GSTR 1 would be mandatorily required to be filed before FORM GSTR3B
  • Auto population of Input tax credit in GSTR 3B from GSTR 2B for quarterly filers
  • The present GSTR-1/3B return filing system to be extended till 31st March 2021 and GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.

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

  • Revised Requirement of declaring HSN/SAC:
Proposed Existing
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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Disclaimer: The content of this document is for general information purpose only. We shall not accept any liability for any decision taken based on the advice. You should carefully study the situation before taking any decision.

Source-

Title Notification No. Date
8 Recommendations of the 42nd GST Council Meeting Release ID: 1661827 05/10/2020

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Qualification: CA in Practice
Company: Jain Swapnil & Associates
Location: West Bengal, IN
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