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The 42nd GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing on 5th October 2020. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance & States/ UTs. The GST Council has made the following recommendations: 1. Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022, for such period as may be required to meet the revenue gap. Further details to be worked out. 2. Centre is releasing compensation of ₹ 20,000 crore to States today towards loss of revenue during 2020-21 and an amount of about ₹ 25,000 crore towards IGST of 2017-18 by next week. 3. Enhancement in features of return filing:In its 39th Meeting held in March 2020, the Council had recommended an incremental approach to incorporate features of the new return sy

‘E-Invoicing’ for certain classes of taxpayers has come into effect from 1-10-2020. Keeping in view the hardships faced by the taxpayers due to COVID-19 lockdown and as some of these taxpayers are still not ready, as a last chance, Government had given relaxation that invoices raised by notified taxpayers during October, 2020 without following e-invoice procedure (i.e. uploading invoice details on e-invoice portal (IRP), obtaining IRN and issuing invoice with QR Code) will be deemed to be valid and no penalty will be there if the IRN for such invoices is obtained within 30 days of date of invoice. Further, vide notifications (Central Tax) 70/2020 and 72/2020 dated 30-9-2020, certain amendments and additions were made in respect of e-invoicing. Below is the summary of amendments: Regarding aggregate turnover threshold, it was specified that those who crossed Rs. 500 Cr. in any preceding financial year from 2017-18 onwards, will be covered. Supplies for ‘exports’ are also specifically i

The 40th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing on12th June 2020. This was the first GST Council meet after the successive lockdowns due to Covid-19 pandemic. The following recommendations were made related to changes in Law & Procedure: 1. Reduction of Late Fees for Past Returns As a measure to clean up pendency in return filing, late fees for non-furnishing FORM GSTR-3B for the tax period from July 2017 to January 2020 has been reduced/waived as under:  a)'NIL’ late fee if there is no tax liability. b)Maximum late fee capped at Rs. 500/- per return if there is any tax liability. The Reduced Late Fees would apply for all the GSTR-3B returns furnished between 1 July 2017 to 30 September 2020. 2. Further relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods: For small taxpayers (aggregate turnover up to Rs.5 Crores), for the supplie