Key takeaways from 39th GST Council held on 14 March 2020 at Delhi:
- Interest on Delayed payment of GST will be charge on Net Cash Liability Basis. For this council assure to change the law retrospectively.
- Due date for GST Audit and Annual Return for FY 2018-19 has been further extended to 30th June 2020.
- Turnover limit for GST Audit has been increase to 5 crore form earlier limit of 2 Crore
- New Proposed returns have been deferred till further notification. i.e. GSTR 3B and GSTR 1 will be continue till 30th September 2020
- Late fee for GSTR 9/9A and 9C has been waived for taxpayers who have aggregate turnover less than Rs. 2 crores for FY 2017-18 and FY 2018-19
- Due date of GSTR 1, 3B and 7 from July 19 to January 20 has been extended to 24th March 2020 for taxpayers of Union territory of Ladakh
- The requirement of furnishing FORM GSTR-1 for 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 onetime extension has been given to all those tax payers whose GST registration has been cancelled, can now apply for revocation till 30th June 2020. Previously taxpayer was liable to submit revocation application within 30 days of cancellation
- To curb fake invoicing and fraudulent passing of Input Tax Credit, restrictions to be imposed on passing of the Input Tax Credit in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person
- Dates for implementation of E-invoicing has been extended to 1 October 2020-03-14
- Certain Class of person has been exempted from issuance of e-invoices. Such classes of person are: insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.
Input Tax Credit:
- Procedure for reversal of input tax credit has been changed where capital goods partly used for affecting taxable supplies and partly for exempt supplies.
Above Blog is simplified interpretation of Press Release of 39th GST Council. Author will not be responsible for any action taken on the basis of above interpretation. Suitable notification/Circular will be issued in due course by Central Government.