GST updates from 43rd GST Council Meeting

The GST Council has conducted the 43^rd GST Council Meeting and has announced certain changes to the GST laws and procedures. The Key highlights are given below:

1. Exemptions from IGST on imports have been given to certain specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc. up to 31.08.2021.
2. Appropriate changes in the relevant notification for an explicit provision to make it clear that land owner promoters could utilize credit of GST charged to them by developer promoters in respect of such apartments that are subsequently sold by the land promotor and on which GST is paid. The developer promotor shall be allowed to pay GST relating to such apartments any time before or at the time of issuance of completion certificate.
3. Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns: To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: –
   1. Late fee capped to a maximum of Rs 500/- per return for taxpayers, who did not have any tax liability for the said tax periods;
   2. Late fee capped to a maximum of Rs 1000/- per return for other taxpayers;

The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.

1. Upper limit is proposed for the late fees as under:
   1. For Nil returns – Rs. 500/-
   2. For others:

1.           For tax payers with annual turnover less than Rs. 1.5 Crores – Rs. 2,000/-
2.           For tax payers with annual turnover between Rs. 1.5 Crores to Rs. 5 crores – Rs. 5,000/-

• For tax payers with annual turnover more than Rs. 5 Crores – Rs. 10,000/-

1. Late fee reduction also proposed for filing GSTR4 and GSTR7.
2. COVID-19 relaxations in filing the monthly returns extended for May 2021 returns as well.
3. Time limit for completion of certain actions also extended up to 30^th June 2021.
4. Requirement audit by a Chartered Account/Cost Accountant removed for the year 2020-21. GSTR9C shall be self-certified by the supplier himself.
5. Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on net cash basis, to be notified at the earliest.

The above changes shall be effective from the date notified.

The detailed press release is attached. PressRelease-43rd GST council meeting