Please find below some of the key decisions taken by the GST Council in its 39th meeting which was held on 15.03.2020.

Policy and rate changes:

• Interest for delayed payment of GST to be charged on the net cash tax liability (Law to be amended retrospectively with effect from 01.07.2017)

• In case where registration certificate has been cancelled till 14.03.2020,  an application for revocation of such cancellation can be filed upto 30.06.2020

• Relaxation from furnishing of Reconciliation Statement in FORM GSTR-9C for the Financial Year 2018-19 for taxpayers having aggregate turnover below Rs. 5 crores

• Due date for filing of Annual return and the Reconciliation Statement for the Financial Year 2018-19 to be extended to 30.06.2020

• No late fees 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

• The requirement of furnishing FORM GSTR-1 for the Financial Year 2019-20 to be waived for taxpayers who could not opt for availing the option of special composition scheme under Notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02

• A special procedure to be prescribed for registered persons who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 and are undergoing the corporate insolvency resolution process so as to enable them to comply with the provisions of GST Laws during the CIRP period

• Bunching of refund claims allowed across financial years to facilitate exporters

• The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020. Certain class of registered persons (insurance company, banking company, financial institution, nonbanking financial institution, GTA, passenger transportation service etc.) to be exempted from issuing e-invoices or capturing dynamic QR code

• Extension of the present exemptions from IGST and Cess on the imports made under the Advance Authorisation/Export Promotion Capital Goods/Export Oriented Units schemes upto 31.03.2021

• Continuation of existing system of furnishing FORM GSTR-1 and FORM GSTR-3B till September 2020

• To curb fake invoicing and fraudulent passing of Input tax credit (ITC), restrictions to be imposed on passing of ITC in case of new GST registrations before physical verification of premises and Financial KYC of the registered person

• Amendments under the CGST Rules:

- ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero rated supplies

- to allow for refund to be sanctioned in both cash and credit in case of excess payment of tax

- to provide for recovery of refund on export of goods where export proceeds are not realized within the time prescribed under FEMA

- to operationalize Aadhaar authentication for new taxpayers

• GST rate on Mobile Phones and specified parts increased from 12% to 18%

This update has been contributed by Ajay Sanwaria (Managing Associate).