43rd GST Council Meeting Held on 28th May, 2021- Key Highlights

 

43rd GST Council Meeting Held on 28th May, 2021- Key Highlights

To combat the difficulties faced by the taxpayers in the light of the second wave of COVID 19 pandemic accompanied with the gradual increase in the Black, white and yellow fungus cases, the 43rd GST Council Meeting was held on 28th May, 2021. A series of recommendations were issued through the Video meet chaired by Nirmala Sitharaman.

The same are in the nature of recommendation and not effective as yet. 

We have divided the same into parts for the ease of understanding and referral:

 1.     Relaxations in various due dates

 2.     Rationalization in late fees for filing GSTR1 and GSTR3B

 3.     Cumulative availing credit as per GSTR2A for April, May and June-2021

 4.    Simplification in furnishing the mandatory requirement of Annual return and Reconciliation statement for 2020-21

 5.     Retrospective effect for charging interest on net cash liability

 6.     Relief in GST rates in case of COVID-19 related Medical Goods

 7.     Clarification in Applicability of GST in case of certain services

 8.      Extension for time limit for completion/ compliance of any action, by any authority or by any person

 










3.   Cumulative Availing Credit as per GSTR2A for April, May, June-2021

           Present Provision 

The GST credit availed in a particular month cannot exceed 105% of the ITC reflected in GSTR2A of the respective month.

          Amended Provision for April, May-2021 (Notf.13/21-CGST dt.1st May, 21)

The ITC which shall be availed in the GSTR3B of April-2021 and May-2021 shall cumulatively not exceed 105% of the total ITC reflected in GSTR2A of April-2021 and May-2021.

         Recommended Provision for April, May, June-2021 

The ITC which shall be availed in the GSTR3B of April, May and June-2021 shall cumulatively not exceed 105% of the total ITC reflected in GSTR2A of April, May and June-2021.

   4.   Simplification in furnishing the mandatory requirement of Annual Return (GSTR9) and Reconciliation Statement (GSTR9C- Formerly known as GST Audit Report) for F.Y.2020-21


5.  Retrospective effect for Interest on Delayed Payment of Tax to be charged on Net Cash Liability

           Present Provision: 

         Through the Finance Bill, 2019 it was proposed that the interest on delayed payment of tax would be charged on Net Cash Liability i.e. the amount debited from the electronic cash ledger from the GST portal.

 However, there were deliberations if this was to be give retrospective effect or prospective effect.

           Recommended Provision: 

In the Finance Bill and also as per the recommendations, the interest on delayed payment of tax liability shall be levied on the Net Cash liability.

      6. Relief in GST rates in case of COVID-19 related Medical Goods

          Full exemption from GST has been recommended to be granted in case of items such as

          Medical oxygen 

          Oxygen Concentrators 

          Other oxygen storage and transportation equipment Certain Diagnostic markers test kits

         COVID vaccines

          Amphotericin B and other such items (list to be notified in due course) for the treatment of black fungus, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency up till 31st August, 2021.

 Initially IGST exemption was applicable only when the aforementioned goods were imported free of cost. This extension shall also be available till 31st Aug, 21.

 GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%) in order to support the LympahticFilarisis (an endemic) elimination programme being conducted in collaboration with WHO.

 Further relaxations have been recommended in case of repair value of re-imported goods such as sprinklers/ drip irrigation systems and other such components even if imported separately.

               8. Extension for time limit for completion/ compliance of any action, by any authority or by any person

                   The time limit for completion or compliance of any action, by any authority or by any person, which falls during the period from 15th April, 2021 to 29th June, 2021 is extended up to 30th June, 2021.

  

Request you to kindly go through the above and kindly note that the above provisions are yet to be notified.

                                                                                                                                                        


                                                                                                                                                            Writer: CA Komal Allug
















Comments

Post a Comment

Popular posts from this blog

Land Mark Judgement: No section 14A disallowance if assessee had sufficient interest free own fund

Image
  Case Law Details Case Name :  South Indian Bank Limited Vs CIT (Supreme Court of India) Appeal Number : Date of Judgement/Order : Related Assessment Year : Download Judgment/Order Land Mark Supreme Court Judgement: No disallowance u/s 14A of the Income Tax Act, 1961 Case Name:  South Indian Bank Limited Vs CIT (Supreme Court of India) Appeal No: Civil Appeal No. 9606 of 2011 Date of judgement/order: 09.09.2021 Court: Supreme Court of India In the landmark judgement the  Hon’ble Supreme Court of India  allowed the appeal of the South Indian Bank by settling the long drawn battle between the assessee and the department on whether proportionate disallowance of interest paid by the banks is called for under section 14A of the Income Tax Act for investments made in tax free bonds/securities which yield tax free dividend and interest of assesse Banks when assesse had sufficient interest free own fund which were more than the investments made. The Supreme Court held that where the Assessee
Read more

Recruitment and Appraisal

  Team Composition The firm has a large number of employees consisting of Chartered Accountants, students pursuing Chartered Accountancy course and Company Secretary, MBA and Graduate in accounting. Our services covers compliances and assurance as per the provisions of the Company Law, Income Tax Law and other laws which influence financials directly. Team Training EAP takes various initiatives for the training of employees which are relevant to the execution of assignments including wide areas such as recent amendments/changes in the Acts relating to direct and indirect tax, new methods/processes for execution of works, advance excel skills.M Our training also covers guidance on handling of Val
Read more

Section 148 Reassessment order passed in case of non-existent entity is void

Image
Case Name:  Teleperformance Global Services Private Limited vs ACIT (Bombay High Court) Written Petition No 950 of 2020 Date of judgment/order: 09.04.2021 Related Assessment Year – 2012-13 Court: Bombay High Court The Hon’ble Bombay High Court has in case of writ petition filed by Teleperformance Global Services Private has held that assessment order passed against a non-existent company is void. M/s Tecnovate Esolutions Pvt Ltd (TSPL) was registered company engaged in business of providing back office services/remote data entry services for customers in and outside India. Under order dated 11.02.2011 a scheme of amalgamation of aforesaid company with M/s Intelnet Global Services Pvt ltd, was approved with effect from 01.04.2010 and since then TSPL ceased to exist. Subsequently, M/s Intelnet Global Services Pvt Ltd amalgamated with M/s Serco BPO Pvt Ltd. Thereafter there has been change in the name with effect from 11.01.2016 from M/s Secro BPO Pvt Ltd to M/s Intelnet Global Services P
Read more