The 39th GST Council meeting has been started today i.e. 14th March 2020 in New Delhi in the chairmanship of Union finance minister Nirmala Sitharaman and other panel ministers.
The GST Council may decide on some of the major issues ongoing in the country. It is expected that the council may reduce tax rates on the very much required necessities such as Sanitizers, Face Mask, etc in the wake of Coronavirus pandemic across the globe.
Also, the GST council may also request the trading units to sell the health equipment like masks and sanitizers to be sold at MRP only and not more than that in order to profiteer the medical situation.
Live Updates of 39th GST Council Meeting – 14th March 2020
- 07:03 PM – Know your supplier scheme approved by the council
- 07:02 PM – Aircraft MRO tax deducted from 18% to 5%
- 06:42 PM – Match sticks GST rates both machine and handmade now rationalized for 12%
- 06:22 PM – Being late in GST payment interest payment to be charged with every upcoming cash liability under Section 50, to be applicable starting from July 2017
- 06:18 PM – GSTR-1 filing dates now – Before 10th for turnover greater than Rs 1.5 cr and Before 13th for turnover lesser than Rs 1.5 cr. GSTR-2A reconciliation now fixed for 14th of every month
- 06:12 PM – GSTR-1 now compulsory for performing B2B supplies, exports & amendments while the B2C & non-filers of GSTR-3B now exempted from filing the GSTR-1
- 5:35 PM – GSTR -1, GSTR-2A and GSTR-3B filing extended till September 2020
- 5.15 PM Big Relief for Taxpayers – GST council extends the due date GSTR 9 and GSTR 9C till 30th June 2020 from 31st March 2020 for the FY 2018-19. Also, the annual return filing turnover limit extended to 5 crores from 2 crores
- 04:43 PM – ITC blockage may be removed for taxpayers opting 5% output GST by council
- 04:18 PM – GST rate on mobile phones has increased to 18% from 12% with total ITC claim; Service providers of maintenance, repair, and operations are given relief
- 04:10 PM – Rate rationalization under GST postponed to the next GST council meeting to be held in April 2020
- 2:27 PM – Delhi FM Manish Sisodiya demands discussion from the council members on the possible economic crisis from Coronavirus
- 2:14 PM – Infosys presents a complete plan for phase-wise implementation in coming one year
- 1.30 PM – Finance Minister likely to discuss the states’ compensation issue in the next 40th GST council meeting
- 12:30 PM – Infosys states a one-year time frame to resolve GST portal & IT network issues and Sushil Kumar Modi details the IT issues via presentation
- 11:15 AM – 39th GST Council meeting started with the union finance minister and Finance Ministers of States & UTs
All details are given from the authentic sources
Many of the states and center revenue departments are watching over declining GST collection as short as 30 thousand crores. The states may also not get the asked compensation as discussed earlier with the center due to the shortfall this time.
While the central government is mulling the point that the compensation would be given through the cess. Also, it is expected that the central government will be pushing the hike in GST rate so that the compensation can be divided evenly into the states.
It is to be what the decision would be finalized in the upcoming 39th GST council meeting.
39th GST Council Meeting Expectations (14th March 2020)
Change in the GST Rate Structure
The upcoming GST council meeting is expected to discuss a major change in the GST rate structure, keeping in mind the revenue collection and rising prices of basic items.
Prevent Tax Evasions
The council will likely discuss the measures to strengthen the GST system and make it fool-proof against tax evasion.
Solution to GST Portal Glitches
One of the major agendas to be discussed during the next GST council meeting is to find a definite and long-term solution to the technical glitches on the GST portal that affect the taxpayers’ ability to file returns on time.
Interest on Delayed Payments
The council may also discuss the probability to calculate the interest on delayed payments only on the net tax liability, and how it will impact the government’s revenue.
Correction in Duty Structures
The GST Council may also decide to correct inverted duty structure in order to create a balance between the duty levied on finished products and that on the raw material.
