39th GST council meeting was held on 14.03.2020. Major highlights of above meeting as per the sources are as follows:
- GSTR 9/ 9C due date for F.Y. 2018-19 has been extended to 30.06.2020.
- Turnover Limit for GSTR 9C has been increased to Rs. 5 crore.
- 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.
- 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).
- To raise the GST rate on Mobile Phones and specified parts presently attracting 12% to 18%.
- To deliberate the issue of calibrating the rate in other items for removing inversion in future meetings with further consultation and examination of issue.
- GST rate on all types of matches (Handmade and other than Handmade) has been rationalised to 12% (from 5% on Handmade matches and 18% on other matches). This would address the classification issues.
- To reduce GST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC and to change the place of supply for B2B MRO services to the location of recipient. This change is likely to assist in setting up of MRO services in India. Domestic MRO will also get protection due to 5% tax paid under section 3(7) of the Customs Tariff Act, 1975 on most imported goods (sent abroad for repairs) as this tax is not available as credit.
- 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).
- 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.
- 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.
- 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
- The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020.
Note: It is proposed to issue notifications giving effect to these recommendations of the Council on 01st April, 2020.
Stay tuned for more updates.Press Release_ Law and Procedure related
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