39th GST Council Meeting Outcome

Business
  1. Hiked the rate on mobile phones to 18 percent from 12 percent
  2. Gave relief to domestic maintenance, repair and overhaul (MRO) service providers. It has decided to bring parity with allowing 5 percent GST with full input tax credit (ITC)
  3. GSTR-9 and 9C due date pushed to 30th June 2020 for FY 2018-19 from 31 March 2020; Increases the turnover limit from Rs 2 cr to Rs 5 cr for the mandatory annual return filing
  4. The GST Council will continue with GSTR-1, GSTR-2A and GSTR-3B till September 2020 and defer the new GST return system till such time
  5. To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person.
  6. Certain class of registered persons (insurance company, banking company, financial institution, non-banking financial institution, GTA, passenger transportation service etc.) to be exempted from issuing e-invoices or capturing dynamic QR code
  7. The dates for implementation of e-invoicing and QR Code to be extended to 01.10.2020.
  8. Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended retrospectively).
  9. Where registrations have been cancelled till 14.03.2020, application for revocation of cancellation of registration can be filled up to 31.03.2020 (extension of period of application as one-time measure to facilitate those who want to conduct business).
  10. Relaxation to Businesses from furnishing of Reconciliation Statement in FORM GSTR-9C, for the financial year 2018-19, for taxpayers having aggregate turnover below Rs. 5 crores;
  11. Late fees not to be levied for delayed filing of the Annual return and the Reconciliation Statement (GSTR-9) for financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.
  12. The GST Council decided to stagger the GSTR-1 filing for taxpayers with: Turnover more than Rs 1.5 cr to file before 10th of the following month –
  13. Turnover upto Rs 1.5 cr -to file before 13th of the following month
  14. The GSTR-2A can be generated on 14th of following month