Finance minister Nirmala Sitharaman addressed Media for briefing the Several decisions taken by GST Council in 43rd GST Council meeting held on May 28, 2021. Summary of key decisions are a follows-
- Import of COVID-related relief items, even if purchased or meant for donating to Govt. or to any relief agency upon recommendation of State authority, to be EXEMPTED from IGST till 31 Aug 2021
- Annual Return Filing will continue to be optional for 2020-21, for small Taxpayers with turnover less than Rs. 2 Crore.
- Reconciliation statements for 2020-21 to be furnished by taxpayers with turnover of Rs. 5 Crore or more
- Law Committee will look into issues involving Quarterly Return Filing and Quarterly Payment, the modalities need to be worked out
Read Also: GST Weekly Update: Goods and Service Tax May 2021
- Late fees have also been rationalized Maximum amount of late fee has been reduced; will come into effect from future tax periods This will provide long-term relief for small GST Taxpayers.
- To provide relief to small taxpayers, amnesty scheme has been recommended for reducing late fee. To benefit around 89% of GST taxpayers, they can file pending returns, avail benefits of scheme, with reduced late fees
- Like last year, GST Council felt that this is not the appropriate time for correction in Inversion duty, so this remains where it is.
- AmphotericinB (required for treating Mucormycosis fungal infection) has also been included in list of items EXEMPTED from IGST, in view of rising cases of the infection. AmphotericinB included in the list of items exempted from IGST Group of Ministers to be formed quickly (by tomorrow), who will submit report by 8 June 2021; to examine need for further reductions & decide on any new rates in exemptions
- On GST compensation cess, same formula as last year to be adopted this year too Rough estimate is that Centre will have to borrow Rs. 1.58 Lakh Crore and pass it on to States.
- As we are in the last of the 5 years of 14% compensation protected revenue arrangement, FM have assured the members, they will hold a special session of GST Council, exclusively on single-point agenda of, how compensation cess be collected, how long, how much, beyond July 2022.
Read Also: CBIC issued Guidelines on Cancellation of GST Registration
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