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 43^rd GST Council Meeting was held on 28^th 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.1^st 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 31^st August, 2021.

 Initially IGST exemption was applicable only when the aforementioned goods were imported free of cost. This extension shall also be available till 31^st 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 15^th April, 2021 to 29^th June, 2021 is extended up to 30^th 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