{"id":4956,"date":"2020-03-16T18:39:41","date_gmt":"2020-03-16T13:09:41","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=4956"},"modified":"2024-12-11T17:25:44","modified_gmt":"2024-12-11T11:55:44","slug":"key-highlights-of-39th-gst-council-meeting","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/key-highlights-of-39th-gst-council-meeting\/","title":{"rendered":"Key Highlights of 39th GST Council Meeting"},"content":{"rendered":"\n<p>39th GST Council meeting was held on 14 March 2020, Saturday. The meeting was chaired by Hon&#8217;ble Union Finance Minister Nirmala Sitharaman and was conducted in Vigyan Bhawan, New Delhi. The Council in it&#8217;s 39th meeting took a variety of decisions, including an increase in the GST on mobile phones and specified parts to 18% from 12%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Highlights of the 39th GST Council Meeting<\/h2>\n\n\n\n<div class=\"mt-3 mb-3 embed-responsive embed-responsive-16by9\"><iframe class=\"embed-responsive-item\" src=\"https:\/\/www.youtube.com\/embed\/JQW0sHydBSc\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Changes in GST Rates<\/h3>\n\n\n\n<ul>\n<li>GST on mobile phones, specified parts increased to 18% from 12%.<\/li>\n\n\n\n<li>GST on Maintenance, Repair and Overhaul (MRO) services of aircraft slashed to 5% from 18%.<\/li>\n\n\n\n<li>GST on handmade, machine-made matchsticks rationalized to 12%. Till now, the handmade ones were taxed at 5%, and other matches were taxed at 18%.<\/li>\n\n\n\n<li>All these rate changes will be effective from 01 April 2020.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Extension of GSTR-9 and GSTR-C<\/h3>\n\n\n\n<ul>\n<li>Due date for annual return in form GSTR-9 and\nForm GSTR-9C for FY 2018-19 has been extended to 30 June 2020. The earlier date\nfor filing the said returns was 31 March 2020.<\/li>\n\n\n\n<li>The turnover limit for audit purposes has been\nincreased from Rs 2 crore to Rs 5 crore. Hence, filing GSTR-9C is optional for\ntaxpayers having the turnover less than Rs 5 crore.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Late Fee Waiver<\/h3>\n\n\n\n<p>The taxpayers with an aggregate annual turnover of less than Rs 2 crore in FY 2017-18 and FY 2018-19 will not have to pay any late fee for delayed filing of GSTR-9. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Existing Return Filing System <\/h3>\n\n\n\n<p>The existing return system (GSTR-1, GSTR-2A &amp; GSTR-3B) will be continued until September 2020.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Interest on Net Cash Liability<\/h3>\n\n\n\n<p>It was decided in the <a href=\"https:\/\/corpbiz.io\/learning\/39th-gst-council-meet\/\"><strong>39th GST Council Meeting<\/strong><\/a> that the interest for delayed GST payment will be calculated on the net cash tax liability from 01 July 2017 (Law to be amended retrospectively)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Revocation of Registration<\/h3>\n\n\n\n<ul>\n<li>The taxpayer&#8217;s whose registration is cancelled till 14 March 2020 can file an application for revocation of cancellation of registration till 30 June 2020.<\/li>\n\n\n\n<li>The extension of the period of application is a one-time measure to facilitate those who want to conduct business.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Know your Supplier<\/h3>\n\n\n\n<p>GST Council, in its meeting,\nintroduced a new scheme called &#8216;Know your Supplier&#8217;. The said scheme will\nenable every registered person to have some basic knowledge about the suppliers\nwith whom they conduct or propose to conduct the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Deferment of E-invoicing and QR Code<\/h3>\n\n\n\n<p>The date of the implementation of\ne-invoicing and QR code has been extended to 01 October 2020. It was also\ndecided in the meeting to exempt certain class of registered persons (insurance\ncompany, banking company, financial institution, non-banking financial\ninstitution, GTA, passenger transportation service etc.) from issuing\ne-invoices or capturing dynamic QR code.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Deferment of E-wallet Scheme<\/h3>\n\n\n\n<ul>\n<li>The time limit for finalization of e-wallet\nscheme for consumers has been extended up to 31 March 2021.<\/li>\n\n\n\n<li>Present IGST and Cess exemptions on the imports\nmade under the AA\/ EPCG\/EOU schemes will continue up to 31 March 2021. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Curb fake invoicing<\/h3>\n\n\n\n<p>In an effort to curb fake invoicing and fraudulent passing of <strong>Input Tax Credit (ITC)<\/strong><sup><a href=\"http:\/\/cbic.gov.in\/resources\/\/htdocs-cbec\/gst\/ITC%20_Mechanism.pdf;jsessionid=2BD0EE5EF73469D23980E2B5E8E168E8\"><strong>[1]<\/strong><\/a><\/sup><strong>,<\/strong> GST council has decided to impose restrictions on the passing of ITC in case of <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>new GST registrations<\/strong><\/a><strong>,<\/strong> before physical verification of premises and Financial KYC of the registered person.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Amendments made in CGST Rules<\/h3>\n\n\n\n<p>Some of the key amendments to\nCGST Rules are as below:<\/p>\n\n\n\n<ul>\n<li>Procedure for reversal of ITC in respect of\ncapital goods partly used for effecting taxable supplies and partly for exempt\nsupplies under rule 43 (1) (c).<\/li>\n\n\n\n<li>It was also decided in the GST Council meeting\nto fix a ceiling for the value of export supply for the purpose of calculation\nof refund on zero-rated supplies.<\/li>\n\n\n\n<li>A decision was made to allow for the refund to\nbe sanctioned in both cash and credit in case of excess payment of tax.<\/li>\n\n\n\n<li>GST Council also decided to operationalize\nAadhaar authentication for new taxpayers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Take Away<\/h2>\n\n\n\n<p>In it&#8217;s 39th meeting GST Council took an array of decisions including an increase in the GST on mobile phones from 12% to 18%. Another important decision includes the extension of due date for annual return in form GSTR-9 and forms GSTR-9C for FY 2018-19 till 30 June 2020 from 31 March 2020. The Council also reviewed the functioning of GSTN and asked Infosys to rectify all the glitches by July 2020.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/tax-dept-wants-companies-to-pay-gst-on-non-compete-fee\/\">\nTax Department asks Companies to Pay 18% GST on Non-Compete Fee<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/press-release-goods-services.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">press-release-goods-services<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>39th GST Council meeting was held on 14 March 2020, Saturday. The meeting was chaired by Hon&#8217;ble Union Finance Minister Nirmala Sitharaman and was conducted in Vigyan Bhawan, New Delhi. The Council in it&#8217;s 39th meeting took a variety of decisions, including an increase in the GST on mobile phones and specified parts to 18% [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":4957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[397],"acf":{"service_id":"215"},"authorName":"Shubham Chauhan","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/shubham-chauhan.jpg","authorDescription":"A passionate legal content writer, a nature enthusiast, an avid reader, and a part-time thinker. By means of conducting in-depth research on industry related topics, Shubham often builds flawless and intelligible legal content for populace from all walks of life.","postViews":9012,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4956"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=4956"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4956\/revisions"}],"predecessor-version":[{"id":67765,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/4956\/revisions\/67765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/4957"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=4956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=4956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=4956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}