43rd GST Council Meeting
(Held on 28th May 2021)
After a gap of seven months, the 43rd GST council meeting was held on 28th May 2021. The meeting was chaired by Finance Minister Smt. Nirmala Sitharaman via video conferencing at 11 AM in New Delhi. Union Minister of State for Finance and Corporate Affairs Shri Anurag Thakur was also present at the meeting, besides the Finance Ministers of the states and union territories (UTs), and other senior officers of both, the Ministry of Finance and the States and UTs.
Key Highlights of 43rd GST Council Meeting
ü It has been decided in the meeting that the annual return filing of GST will continue to be optional for 2020-21, for small taxpayers with turnover less than Rs. 2 Crores. Reconciliation statements for 2020-21 to be furnished by taxpayers with turnover of Rs. 5 Crores or more.
ü Import of COVID-related relief items, even if purchased or meant for donating to Govt. or to any relief agency upon recommendation of State authority, to be EXEMPTED from IGST till 31 Aug 2021.
ü To provide relief to the taxpayers, Amnesty Scheme has been announced under which late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: -
Ø late fee capped to a maximum of Rs. 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;
Ø late fee capped to a maximum of Rs. 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers;
ü 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.
ü Like last year, GST Council felt that this is not the appropriate time for correction in Inversion duty, so this remains where it is.
ü AmphotericinB (required for treating Mucormycosis fungal infection) has also been included in list of items EXEMPTED from IGST, in view of rising cases of the infection. AmphotericinB included in the list of items exempted from IGST Group of Ministers to be formed quickly (by tomorrow), who will submit report by 8 June 2021; to examine need for further reductions & decide on any new rates in exemptions.
ü Council has recommended to amend CGST Act for Self Certification of Annual return by Tax payers.
ü Rationalization of Late fees for small taxpayers to be applicable to future tax liabilities.
ü A QRQP (Quarterly Returns Quarterly Payments) scheme was discussed (not final yet) during the meeting; modalities of the scheme are being looked into by a law committee.
ü Simplified Annual Return and Reconciliation statement Is to be introduced for FY 2020-21.
ü On GST compensation cess, same formula as last year to be adopted this year too Rough estimate is that Centre will have to borrow Rs. 1.58 Lakh Crore and pass it on to States.
ü As we are in the last of the 5 years of 14% compensation protected revenue arrangement, FM have assured the members, they will hold a special session of GST Council, exclusively on single-point agenda of, how compensation cess be collected, how long, how much, beyond July 2022.
We will keep you posted for all further updates!!!
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