Outcome of the 42nd GST Council Meeting - A Tabular Format

Sl. No

Area

Recommendation/Action

Effective from

1

Compensation Cess

Compensation Cess to be extended beyond the transition period of five years i.e. beyond June 2022, for such period as may be required to meet the revenue gap. While implementing GST in July 2017, Compensation Cess was levied for a period of 5 years.

Detailed being worked out

2

Compensation Cess

Release of Compensation Cess by Centre for Rs 20,000 crore to States on 5th October 2020 towards loss of revenue from 2020-21. A further amount of about Rs 25,000 crore towards IGST of 2017-18 by next week

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3

Enhancement in features of return filing

Enhance Ease of Doing Business and improve the compliance experience -

1. Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarter (Currently its last date of the month succeeding the Quarter)

w.e.f. 01/01/2021

Roadmap for auto-generation of GSTR-3B from GSTR-1:

1. Auto-population of liability from own GSTR-1

2. Auto-population of the input tax credit from suppliers’ GSTR-1 through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021

3. In order to ensure auto-population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1 need to be mandatorily required to be filed before FORM GSTR3B

4. The present GSTR-1/3B return filing system to be extended till 31.03.2021 (GST laws to be amended to make the GSTR-1/3B as the default return filing system)

w.e.f. 01/01/2021

Monthly – 01/01/21

Quarterly – 01/04/21

w.e.f. 01/04/2021

Sl. No

Area

Recommendation/Action

Effective from

4

Reduction of Compliance Burden

For small taxpayers having aggregate annual turnover < Rs. 5 crores

Allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented

For the first two months of the quarter - Option to pay 35% of the net cash tax liability of the last quarter using an auto-generated challan

(Example – For the Quarter ending June 2021 – such small taxpayers shall have an option to pay 35% of the net cash tax liability of the Quarter ending March 2021. However, this is recommended as optional)

w.e.f. 01/01/2021

5

Revised Requirement of declaring HSN/ SAC in Invoice and Returns

1. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores

2. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover up to Rs. 5 crores

3. Government to have the power to notify 8 digit HSN on a notified class of supplies by all taxpayers

w.e.f. 01/04/2021

6

Amendment to CGST Rules

Various amendments in the CGST Rules and FORMS have been recommended (including the furnishing of Nil FORM CMP-08 through SMS)

NA

7

Refund Related

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

w.e.f. 01/01/2021

8

Exemption for the launching of satellites

To encourage domestic launching of satellites particularly by young start-ups, the satellite launch services supplied by ISRO, Antrix Corporation Ltd., and NSIL to be exempted

To be notified