Key Highlights of 39th GST Council Meeting

39th GST Council Meeting
Dashmeet Kaur
| Updated: Mar 28, 2020 | Category: GST, News

On 14th March 2020, the Finance Minister, Nirmala Sitharaman chaired the 39th GST Council Meeting in New Delhi to make certain amendments in GST Law. As per the proposed decisions, there is an increase in the tax rate on mobile phones and specified parts from 12% to 18%. Moreover, GST on machine-made and handmade matchsticks has also been rationalised to 12%. Apart from introducing the changes in GST rates, the Meeting a new scheme called “Know your Supplier” and recommended certain amendments were also discussed.

The crux of 39th GST Council Meeting

Here are some crucial decisions that were taken in the Meeting: 

  • Implementation of e-invoicing and new GST Return System has been postponed- E-invoicing, new GST Return System and the QR code shall be implemented from 1st October 2020. While, the present Return system (GSTR-1, GSTR-2A & GSTR-3B) will continue to remain until September 2020.
  • Change in GST rates– With effect from April 2020, GST rates mentioned below shall be imposed on mobile phones, matchsticks and MRO services:
    • GST on mobile phones & specified parts shall be18% from current GST of 12%. This decision was taken to discard any difficulties due to the inverted duty structure.
    • All types of matchsticks have been rationalised to 12% GST rate. Presently, the handmade matchsticks are taxed at 5% and others are taxed at 18% GST.
    • GST on (MRO) Maintenance, Repair and Overhaul services in regards to aircraft is reduced from 18% to 5%.
  • Amendment for calculating the interest on delayed payments– The interest for delayed GST payment shall now be calculated on the net tax liability. 
  • Deadline for filing Annual Return and Reconciliation Statement has been extended– GSTR-9 and 9C deadline is extended to 30th June 2020 for Financial Year 2018-19. Moreover, the turnover limit has been increased from INR 2 crore to INR 5 crore for mandatory Anual GST Return filing. Therefore, the taxpayers with a turnover of less than INR 5 crore do not have any such compulsion for filing GSTR-9C. 
  • Know your supplier– This scheme has been introduced in 39th GST Council Meeting to safeguard the interest of the taxpayers  and inform them about the basic details of the suppliers with whom they propose to conduct business.
  • Extension of due dates– GSTR-1 for 2019-20 shall be waived for some taxpayers who can’t choose the Composition Scheme dated 7th March 2019 by filing Form CMP-02. Also, the due date of filing Form GSTR-3B for 2019-2020 is extended to 24th March 2020 for those taxpayers who have their principal business in the Union Territory of Ladakh. Likewise, an extension has been recommended for Form GSTR-1 and Form GSTR-7 as well.
  • Amendment to revocation of GST Registration cancellation- A taxpayer who has cancelled his/her GST Registration till 14th March 2020 can apply for revocation of GST cancellation. The deadline to fill this Application is 30th June 2020. This decision will be beneficial for those taxpayers who want to continue conducting their business operations.

The amendments in GST Laws will bring a revolutionary change for the taxpayers. 

Read, Also:A Complete Guide on GST for Bloggers & YouTubers

docsbizkit
 

Related Articles

Online GST Calculator
Shivani Jain
| Date: Jul 29, 2020 | Category: GST

Online GST Calculator: Easiest Way to Calculate GST Amount

A robust mechanism that helps calculate the GST Amount accurately on various goods and services is known as Online GST Calculator. The only aim behind this device is to show...

Read More
get GST Registration Number
Savvy Midha
| Date: Jan 31, 2020 | Category: GST

How to Obtain Online GST Registration Number?

Goods and Service Tax is the full form of GST which is an indirect tax that came into effect from 1st April 2017 substituting all the other indirect taxes such...

Read More
Cafe Shop in India
Shivani Jain
| Date: Aug 04, 2020 | Category: News

Run a Café Shop in India: Checklist to Start a Café Business

Nowadays, due to the lucrative feature, every embryonic entrepreneur wants to Run a Cafe Shop in India. The term “Lucrative” denotes the high profit margins and the future growth and...

Read More

ARTICLES

Hi! My name is Akanksha! Let's talk.