39TH GST COUNCIL PROPOSALS 14/03/2020

39TH GST COUNCIL PROPOSALS 14/03/2020

INTEREST LIABILITY

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. Most welcome change Whether any RTP who have paid gross liability, will they get refunds?

ALL REGISTERED TAXABLE PERSONS WHO HAVE RECEIVED NOTICES TO PAY THE INTEREST ON GROSS LIABILITY WOULD BE BENEFITED BY SUCH RETROSPECTIVE AMENDMENTS.

ALL RTP WHO HAVE TO PAY ANY KIND OF INTEREST LIABILITY AS PER THE PROVISIONS OF GST SHOULD WORK OUT SUCH INTEREST LIABILITY SHOULD PAY THROUGH EITHER GSTR3B OR THROUGH DRC03 AS APPLICABLE.

All RTPs must avail such an opportunity to discharge the interest liability if applicable prior to receiving any SCN if applicable.

REVOCATION OF CANCELLATION OF REGISTRATION

Cancelled only up to 14/03/2020

Where registrations have been cancelled till 14.03.2020, the application for revocation of cancellation of registration can be filled up to 30.06.2020 (extension of the period of application as a one-time measure to facilitate those who want to conduct business).

A positive step to facilitate trade. Welcome step.

ANNUAL RETURNS GSTR 9 & GST AUDIT FORM GSTR 9C

GSTR 9 & GSTR 9C for FY 18-19

Relaxation to MSMEs from the furnishing of Reconciliation Statement in FORM GSTR-9C, for the financial year 2018-19, for taxpayers having aggregate turnover below Rs. 5 crores; It is available only to RTP who are registered as MSMEs for FY 1819 and not to others Due date for filing the Annual return and the Reconciliation Statement for the financial year 2018-19 to be extended to 30.06.2020 from existing due date 31.03.2020. Due Date Extension for GSTR 9 & 9C.

Late fees not to be levied for delayed filing of the Annual Return and the Reconciliation Statement for the financial year 2017-18 and 2018-19 for taxpayers with aggregate turnover less than Rs. 2 crores.

Is Reconciliation statement applicable to RTP having aggregate turnover less than Rs.2 Crores?

KNOW YOUR CUSTOMER

Similar to KYC

A new facility called ‘Know Your Supplier’ to be introduced so as to enable every registered person to have some basic information about the suppliers with whom they conduct or propose to conduct business.

Welcome option so that if a vendor is irregular in compliances, RTP has the option of not doing the business with such vendors?

GSTR 1 FILING WAIVER

Only for RTP availing the special composition scheme and not to others

The requirement of furnishing FORM GSTR-1 for 2019- 20 to be waived for taxpayers who could not opt for availing the option of special composition scheme under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 by filing FORM CMP-02.

Only for RTP availing the special composition scheme and not to others

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