KEY TAKEAWAYS OF 42ND GST COUNCIL MEETING

The GST Council held its 42^nd Meeting today. The key takeaways of 42^nd Council meeting are as under:

1. Imposition of Compensation Cess has been extended beyond the transition period of 5 years to meet the revenue gap.

2. The present system of return i.e. GSTR 1 & GSTR 3B has been extended till 31^st March 2021. Further amendments to be made to make the present system as the default one.

3. The tax liability will be auto populated in GSTR 3B based on outward supply furnished in GSTR 1 from 1^st January 2021.

4. The input tax credit will be auto populated in GSTR 3B based on outward supply furnished by vendor in Form GSTR 1 through the newly introduced facility of GSTR 2B from 1^st January 2021.

5. Filing of GSTR 1 will become a pre-condition for filing GSTR 3B with effect from 1^st April 2021.

6. Taxpayers with aggregate turnover of more than Rs.5 Cr. need to mention 6-digit HSN code with effect from 1^st April 2021.

7. For notified class of supplies, 8-digit HSN code is required to be mentioned.

8. Refund would be disbursed to only those bank account which are validated with PAN and Aadhar with effect from 1^st January 2021.

9. Refund application can now be signed through Aadhar authentication via OTP.

10. Exemption from GST granted to the satellite launch services rendered by ISRO, NSIL and to promote startups.

SOURCE : GST PRESS RELEASE DATED 05.10.2020

Disclaimer : TAXGyaAan is meant purely for the educational purpose of Tax Laws and Regulatory Updates. It will not be treated as professional advice. This Blog should not be substituted for professional advice. For specific Queries, please post in the comments section.

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