43rd GST Council Meeting - Major Takeaways

Get to Know About 43rd GST Council Meeting

43rd GST Council Meeting heading by Finance Minister Smt. Nirmala Sitharaman was held through video conferencing at New Delhi on May 28, 2021.

Major Takeaways of 43rd GST Council Meeting

1. Amnesty Scheme with reduced late fees  for pending returns
Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns. Late fee for non-furnishing Form GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived. The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.

Amnesty Scheme for late fees for pending returns

2. Rationalization of late fees
To reduce burden of late fee on smaller taxpayers, the upper cap of late fee is being rationalized to align late fee with tax liability/ turnover of the taxpayers for furnishing of GSTR-3B, GSTR-1, GSTR-4 and GSTR-7.

Rationalization of late fees

3. Reduced rate of interest for small taxpayers
Waiver of late fee for small taxpayers for delay in furnishing return in FORM GSTR-3B for the tax periods March / QE March, 2021 and April 2021 for 60 days and 45 days respectively, from the due date of furnishing FORM GSTR-3B.

Also Read: How to calculate GST?

Reduced rate of interest

4. Reduced rate of interest for other taxpayers
In addition to the relief measures already provided to the taxpayers vide the notifications issued on 01.05.2021, the following further relaxations are being provided to the taxpayers having aggregate annual turnover of more than Rs. 5 crore in filing of GSTR -3B as well as composition tax dealers in filing of CMP-08:

reduced rate of interest and late fees

5. Certain other extensions of filings
– Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.
– Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
– Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
– The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover upto Rs 2 Crore.
– The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore. This return can now be self certified.

Also Read: 42nd GST Council Meeting – Key Enlightenments!

Certain other extensions

6. Simplification of Annual Return

Simplification of annual return

7. COVID-19 relief items
– COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST.

– Import of COVID-19 related items used for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto 31.08.2021.

– As regards individual items, it was decided to constitute a Group of Ministers (GoM) to go into the need for further relief to COVID-19 related individual items immediately. The GOM shall give its report by 08.06.2021.

– Amphotericin B, medicine for Black Fungus Cases is exempted from GST and Custom duty.

– The GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction from 12% to 5%.

– GST rate of 12% to apply on parts of sprinkler / drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) to apply even if these two goods are sold separately.

8. Exemption Services
Services supplied to an educational institution including anganwadi (which provide pre-school education also), by way of serving of food including mid- day meals under any midday meals scheme, sponsored by Government is exempt from levy of GST irrespective of funding of such supplies from government grants or corporate donations

Services provided by way of examination including entrance examination, where fee is charged for such examinations, by National Board of Examination (NBE), or similar Central or State Educational Boards, and input services relating thereto are exempt from GST.

The developer promoter shall be allowed to pay goods and services tax relating to such apartments any time before or at the time of issuance of completion certificate.

Distribution of paddy / wheat into flour and rice to Government and local authority etc is exempt from GST, if the value of goods in such composite supply does not exceed 25%

Read 43rd GST Council Meeting Press Release Here

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