Recommendations of the 42nd GST Council Meeting- 5th Oct 2020

1) Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022

2) To enhance Ease of Doing Business and improve the compliance experience, the Council has approved the future roadmap for return filing under GST to simplify return filing and further reduce the taxpayer’s compliance burden in this regard significantly

3) Council recommended/decided the following today to simplify return filing:

i) Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarter w.e.f. 01.1.2021

ii) Roadmap for auto-generation of GSTR-3B from GSTR-1s by Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021 and Auto-population of input tax credit from suppliers’ GSTR-1s through the 

newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021.

iii) In order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1 would be mandatorily required to be filed before FORM GSTR3B w.e.f. 01.04.2021.

iv) The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system

4)  For Small taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021

5) Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1 w.e.f. 01.04.2021 as under:

a. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;

b. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto Rs. 5 crores;

c.  Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers. 

 6) Various amendments in the CGST Rules and FORMS have been recommended which includes provision for furnishing of Nil FORM CMP-08 through SMS

7) Refund to be paid/disbursed in a validated bank account linked with the PAN &Aadhaar of the registrant w.e.f. 01.01.2021.