The 42nd GST Council meeting is set to talk about a whole host of issues proposing compliance relaxations, finding a solution to the on-going compensation cess issue of nations
1) GST COMPLIANCE DUE DATES
GST Council likely to let UPI & IMPS Choice to make payment. Currently payments can be made by only GST-authorised banks
GST Council to expand GSTR-1 & 3B system till March 21
Council to change due date of filing of GSTR-1 by quarterly taxpayers till 13th of month beside the quarter
Council to consider limiting period for taking cognisance of prosecution under GST Act
Council anticipated to restrict the interval in the event of fine to a max of six-month imprisonment, in case of imprisonment between 1-3 years to 3 years
GST council may re think to expand GST Certification Course Amnesty for GST taxpayers to avail late fee waiver advantage
Extend GSTR 3B amnesty scheme to 31.12.2020
Capped late charge to 500/
Extend all GSTR1 due date from April 20 to 31.03.2021 4.
Relief for supply of section 16(4)
TWO ) GST CHARGES
GST Council-nominated fitment committee proposes no differentiation should be made in ayurvedic & alcohol-based hand sanitizers
Fitment committee analyzed in detail proposition to reduce rates for Ayurveda/Unani/Siddha ingredients based hand sanitizer from 18 to 12 percent
Fitment Committee leaves it for Council to consider whether to re-classify ayurvedic hand sanitizer under Ayurvedic products category & not in disinfectant category
Ayurvedic products attract 12 percent GST, disinfectants bring 18% GST
Council inclined to exempt satellite launching services from GST, proceed to promote personal Indian enterprises to launch satellite through Indian satellite launch centers
3) GST CESS SETTLEMENT DILEMMA
Council to discuss on going compensation issue
Probably to revisit two choices given by Centre to fulfill reimbursement shortfall
Centre to current calculation of compensation cess gathered and released so far
According to Centre, just Rs 15,000cr is equilibrium of cess gathered & not published thus far
Typical earnings gap between April-August of nations has risen to 56% in 2020 vs 21 percent in 2019
GST Council to consider proposal to extend cess span beyond 5 Decades, likely to consider extending cess by 2 more yrs to fulfill shortfall
Council likely to constitute a committee of officers to work out expected shortfall and other issues
Post issuance of telling 63/2020 -- Central Tax dated the 25th August, 2020, there were misgivings raised by taxpayers that the said notification is provided in resistance to the Council's proposal to charge interest on internet cash liability w.e.f. 01.07.2017. Thus, a media release, dated 26.08.2020 was given to clarify the position.
Further, so as to execute the decision of the Council in its true spirit, and simultaneously working within the current legal framework, It's Been chosen to address the issue through administrative arrangements, as below:
A. For the interval 01.07.2017 into 31.08.2020. Field formations on your jurisdiction may be instructed to regain interest only on the internet cash tax liability (i.e. which portion of the tax that's been paid by debiting the digital cash ledger or is payable via cash ledger); and
B. wherever SCNs have been issued on gross tax payable, the exact same may be kept in Call Book until the retrospective amendment in part 50 of this CGST Act is completed.
