GST News
Is GST paid on insurance premium eligible for tax benefit?
February 20, 2020

Major Updates and Highlights on 39th GST Council Meet

39th gst council meet

The 39th GST Council meeting held on Saturday 14 March under the chairmanship of Union Finance & Corporate Affairs Minister Mrs. Nirmala Sithraman. Along with the finance minister, Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur also attended this meeting with Finance Ministers of States & UTs and seniors officers of the Ministry of Finance.

The finance minister Mrs. Nirmala Sithraraman chairs this meeting to take decisions on some of the crucial issues. Here are the highlights:

Extension of GSTR-1 and GSTR-3B

The existing filing system of GSTR-3B and GSTR-1 would continue up to Sep. 2020. As the new GST returns forms were causing troubles and hardships, so it would be applicable from the third quarter of the financial year 2020-21 and the first and second quarter of the financial year 2020-21 would continue with the existing return forms.

Due date extension of annual returns

The due date for filing the GSTR-9 and GSTR-9C for the financial year 2018-19 to be extended up to 30th June 2020 from the earlier due date of 31st March 2020.

Deferment of e-invoicing with its QR code

The implementation of QR and e-invoicing code is postponed up to 1.10.2020.

Changes in rates

  • GST rates have been increased on mobile phones and specified parts from 12% to 18%. The main reason to take this action was to avoid the difficulties in duty structure.
  • 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. This issue was deliberated earlier in the 37th meeting and was pending for decision.

Relaxation for threshold Limit

Relaxation has been provided for filing of GSTR-9C, for the financial year 2018-19, for the taxpayers having aggregate turnover below ₹5 crores. Earlier this limit was only up to ₹2 crores, now most of the MSME can be out of the preview of the audit.

Interest charges on delayed payment

Now, the interest for delayed GST payment would also be calculated on the net tax liability. This amendment will come to force on 1st July 2017.

Refund

In case of excess payment of tax, it is allowed for the refund to be sanctioned in both cash and credit.

Know your supplier (KYS) Scheme

A new scheme named ‘Know your Supplier’ is introduced so that the taxpayers could be updated with the basic details of the suppliers and the loss of ITC could be avoided.

The GST council discussed many things to strengthen the taxation system and to build a strong GST system to avoid tax evasion. Now all the eyes are on the outcome of this council meeting as it was addressing the taxpayers’ woes as a major agenda.

Leave a Reply

Your email address will not be published. Required fields are marked *

78 − 75 =

Stay Connected

Never miss out on what’s new in GST,
Accounting, TDS, and Tax compliance.

Subscribe to our newsletter.

Connect with us on WhatsAapp.





Want to know more about HostBooks?

We'll help you out!






72 + = 80
Please contact me by: