GST Updates

The Summary of 42nd GST Council Meeting 📣📣

🔹 Effective 1st January 2021, *small taxpayers* with turnover less than Rs 5 crore, can file quarterly GSTR-3B and GSTR-1.

🔹 The due date of furnishing quarterly GSTR-1 will be the *13th of the month* succeeding the quarter; this is effective from 01.1.2021. However, taxpayers can upload invoices every month.

🔹 Starting from 1st January 2021, the number of returns have been reduced to *8 from 24* for taxpayers with less than Rs 5 crore turnover.

🔹 Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay *35% of the net cash tax liability* of the previous quarter, using an auto-generated challan.

🔹 A roadmap has been prepared for the *auto-generation of GSTR-3B*, where the ITC will be auto-populated from the supplier’s GSTR-1, and the tax liability will be auto-populated from the business’ GSTR-1. To achieve this, the GSTR-1 should be filed mandatorily before filing GSTR-3B w.e.f.01.04.2021.

🔹 All taxpayers will continue to pay GST dues monthly through a simple challan. A nil CMP-08 will be allowed to be filed through an SMS.

🔹 Effective 1st April 2021 - Taxpayers with turnover exceeding Rs 5 crore, HSN code up to 6 digits must be mentioned. For turnover less than Rs 5 crore, HSN code up to 4 digits need to be mentioned for B2B supplies for both goods and services. For notified classes of goods, 8 digits will need to be mentioned.

🔹 Refunds to be given into bank accounts where *PAN and Aadhaar linking* is done. Aadhaar authentication facility (with OTP) is now allowed for refund applications. This discourages taxpayers from misusing the system.

🔹 GST exemption provided to *satellite launch services* by ISRO and Antrix Corporation, to encourage the space launching services in India.

🔹 *Non-alcohol based sanitisers* will continue to be taxed at an 18% GST rate.

🔹 The *compensation cess collected till now* accounts to Rs.20,000 crore, and the same will be disbursed to the states by tonight.

🔹 The amount of Rs.25,000 crore towards IGST of 2017-18 will also be disbursed to specific states by next week.

🔹 The next Council meeting will be held on *12th October 2020* to resolve compensation issues for states.