39th Meeting
of the GST Council, New Delhi
14 March, 2020
***
PRESS RELEASE
(Law and Procedure
related changes)
The GST Council,
in its 39th meeting held on 14.03.2020, has made the following
recommendations:
1. Measures
for Trade facilitation:
a. 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).
b. 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).
c.
Annual Return:
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 and the Reconciliation Statement for financial
year 2018-19 to be extended to 30.06.2020; and
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.
d. A
new facility called ‘Know Your Supplier’ to be introduced so as to enable every
registered person to have some basic information about the suppliers with whom
they conduct or propose to conduct business.
e. The
requirement of furnishing FORM GSTR-1 for 2019-20 to be waived for
taxpayers who could not opt for availing the option of special composition
scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by
filing FORM CMP-02.
f. A
special procedure is being prescribed for registered persons who are corporate debtors under the
provisions of the Insolvency and Bankruptcy Code, 2016 and are undergoing the
corporate insolvency resolution process, so as to enable them to comply with
the provisions of GST Laws during the CIRP period.
g. A
special procedure for registered persons in Dadra and Nagar Haveli & Daman
and Diu during transition period, consequent to merger of the UTs w.e.f.
26.01.2020; transition to be completed by 31.05.2020.
h. Extension
of due dates for FORM GSTR-3B for
the month of July, 2019 to January, 2020 till 24th March, 2020 for
registered persons having principal place of business in the Union territory of
Ladakh. Similar extension is also recommended for FORM GSTR-1 & FORM
GSTR-7.
i. Bunching
of refund claims allowed across financial years to facilitate exporters.
2.
Deferment
of E-invoice and QR Code:
a. Certain
class of registered persons (insurance company, banking company, financial
institution, non-banking financial institution, GTA, passenger transportation
service etc.) to be exempted from issuing e-invoices or capturing dynamic QR
code; and
b. The
dates for implementation of e-invoicing and QR Code to be extended to
01.10.2020.
3.
Deferment of e-wallet
Scheme:
a. Extension
of the time to finalize e-Wallet scheme up to 31.03.2021; and
b. Extension of the present exemptions from
IGST and Cess on the imports made under the AA/EPCG/EOU schemes up to
31.03.2021.
4.
Continuation of
existing system of furnishing FORM
GSTR-1 & FORM GSTR-3B till
September, 2020;
5.
Other
new initiatives:
a. Seeking
information return from Banks;
b. To
curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed
on passing of the ITC in case of new GST registrations, before physical
verification of premises and Financial KYC of the registered person.
6.
Issuance
of circulars in respect of:
a. Clarification
in apportionment of ITC in cases of business reorganization under section 18
(3) of CGST Act read with rule 41(1) of CGST Rules;
b. Appeals
during non-constitution of the Appellate Tribunal;
c. Clarification
on refund related issues; and
d. Clarification
on special procedure for registered persons who
are corporate debtors under the provisions of the Insolvency and Bankruptcy
Code, 2016, undergoing the corporate insolvency resolution process.
7.
Amendments
to the CGST Rules: Key amendments are as
below:
a. Procedure
for reversal of input tax credit in respect of capital goods partly used for
affecting taxable supplies and partly for exempt supplies under rule 43 (1)
(c);
b. ceiling
to be fixed for the value of the export supply for the purpose of calculation
of refund on zero rated supplies;
c. to
allow for refund to be sanctioned in both cash and credit in case of excess
payment of tax;
d. to
provide for recovery of refund on
export of goods where export proceeds are not realized within the time
prescribed under FEMA; and
e. to
operationalize Aadhaar authentication for new taxpayers.
8.
Certain amendments to
be carried out in the GST laws.
*****
Note: The recommendations of the GST Council have
been presented in this release in simple language for information of all
stakeholders. The same would be given effect through relevant
Circulars/Notifications or amendment in GST laws which alone shall have the
force of law.