The 39th GST Council Meet happened on March 14, 2020 and here are the major takeaways:
- GST rate on mobile phones and specified parts from 12% to 18% since the refunds being issued were more than the tax that was being collected on these commodities.
- The GST on handmade, machine-made matchsticks has been rationalized to 12%.
- GST on MRO (maintenance repair overhaul) services of aircrafts has been slashed to 5% from the previous 18%.
- All GST rate changes will come into effect from April 1, 2020.
- Late GST payment will now attract an interest on net tax liability from July 1, 2020.
- Companies with a turnover of more than Rs 1.5 crore will have to file their GSTR-1 before the 10th of the following month.
- Companies with a turnover up to Rs 1.5 crore will have to file their GSTR-1 before the 13th of the following month.
- The GSTR-2A can be generated on the 14th of following month.
- Relief provided to MSMEs as the due date for GSTR-9 and GSTR-9C has been extended to June 30, 2020 for FY 2018-19. The turnover limit has been increased from Rs 2 crore to Rs 5 crore for the mandatory annual return filing.
- No late fee will be charged for those businesses with an annual turnover below Rs 2 crore in FY18 and FY19.
- The concept of Know Your Supplier is being introduced so that every business will have information of the suppliers they are working with.
The GST Council is also considering some other proposals that were introduced during the meeting. However, the extension of the deadline for filing GST returns has given much relief to smaller businesses. At All India ITR, we provide full assistance with filing GST returns and other annual compliances.