- 43rd meeting of the GST Council was held virtually via video conferencing at 11am today.
- The last meeting was held in October last year and this was the first GST Council meeting to be held in this fiscal.
- It was expected that the issues of compensation to states and GST on essential medical supplies will dominate discussion at the meeting
Union Finance Minister Nirmala Sitharaman chaired the 43rd Goods and Services Tax (GST) Council meeting via video conferencing at 11 am today.
It was expected that the GST Council is likely to discuss key issues including compensation to states, tax waivers on various medicines, medical devices, and health services amid the second wave of the COVID-19 pandemic. Further lowering GST rates for two-wheelers and bringing natural gas into the indirect tax fold were also likely to be on agenda.
The GST Council’s meeting, the first this year, comes at a time when India is reeling under the second wave of coronavirus infections that have derailed the country’s economic recovery. Though the council is required to meet once every quarter, the last meeting was held in October last year.
Key take aways of 43rd GST Council Meeting:
- IGST exemptions on imports of COVID-related goods to be extended till 31st August,2021 and will be applicable even if imported on payment basis, for donating to the Government, or on the recommendation of state authority to any relief agency. Black fungus medicine i.e. Amphotericin B will also be given IGST exemption on imports as above. GoM to be formed to check if further reductions to be given to new items, GoM to submit report within 10 days before 8th June.
- Amnesty Scheme with reduced late fee to be launched for GST Small Taxpayers for non-furnishing Form GSTR-3B for tax periods from July, 2017 to April, 2021. The late fee will be capped at Rs 500 per NIL return and Rs 1000 per return. Further late fee for GSTR-1 / GSTR-4 and GSTR-7 also reduced. This will benefit 89% of GST taxpayers, they can file pending returns, avail benefits of scheme, with reduced late fees.
- Covid related relief measures for tax payers launched in form of reduced / Nil rate of interest.
- Cumulative application of Rule 36(4) for availing ITC for tax periods April, may and June, 2021 in return for the period June, 2021.
- Rationalization of Late fee for Small Taxpayers, to be applicable to future liabilities. This will provide long-term relief to them.
- Annual Return form to be rationalized, Govt to amend CGST Rules Annual Return filing to continue to be optional for Small Taxpayers.
- QRMP Scheme to be modified. Law Committee will look into issues on quarterly filing and payment , the modalities need to be worked out.
- A Special Session on GST Compensation Cess before 22nd July 2021
For detailed deliberation on above and other recommendations CLICK HERE
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CA. Mohammad Salim is an ICAI award winning Chartered Accountant having rich experience of more than 20 years in the field of indirect taxes. He is the Member, Indirect Taxes Committee of PHD Chamber of Commerce and Industry. He is author of four successful books on GST published by Taxmann Publication and is also GST expert on taxmann portal.
