Key Highlights of 39th GST Council Meeting

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 1 st October 2020. While, the present Return system ( GSTR-1 , GSTR-2A & GSTR-3B ) will continue to remain until September 2020.

and the QR code shall be implemented from 1 October 2020. While, the present Return system ( , & ) 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%.

– With effect from April 2020, GST rates mentioned below shall be imposed on mobile phones, matchsticks and MRO services:

Union Minister for Finance & Corporate Affairs Ms. @nsitharaman briefed the media on conclusion of 39th GST Council meeting in New Delhi today. MoS (F) @ianuragthakur, CEA @SubramanianKri, Finance Secretary Dr. A B Pandey & Chairman CBIC were also present #GSTCouncil pic.twitter.com/p7re3iY1aQ — CBIC (@cbic_india) March 14, 2020

Amendment for calculating the interest on delayed payments – The interest for delayed GST payment shall now be calculated on the net tax liability.

– 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 30 th 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 Return filing . Therefore, the taxpayers with a turnover of less than INR 5 crore do not have any such compulsion for filing GSTR-9C.

– GSTR-9 and 9C deadline is extended to 30 June 2020 for Financial Year 2018-19. Moreover, the turnover limit has been increased from INR 2 crore to INR 5 crore for mandatory . 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 39 th 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.

– This scheme has been introduced in 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 7 th March 2019 by filing Form CMP-02. Also, the due date of filing Form GSTR-3B for 2019-2020 is extended to 24 th 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.

– GSTR-1 for 2019-20 shall be waived for some taxpayers who can’t choose the Composition Scheme dated 7 March 2019 by filing Form CMP-02. Also, the due date of filing Form GSTR-3B for 2019-2020 is extended to 24 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.

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