43rd GST Council Meet Today: Amnesty Scheme, Cess Formula Unchanged etc.

The Finance Minister Nirmala Sitharaman after request from various state governments headed the 43rd GST Council Meet today. The last time the GST Council meet was held on October 5, 2020.

43rd GST Council Meet Today: Amnesty Scheme, Import Of Covid Items IGST Exempt etc.

Some of the major agendas expected to be covered in the meet are:

1 Covid-Related Relief Items which are imported will be exempt from IGST:

The FM clarified that any of the import of Covid relief material even if it is meant for the purpose of donating to the centre or any other relief entity, it shall not attract any IGST implication till August 31, 2021. Also, the drug AmphotericinB used for treating Mucormycosis fungal infection shall also be the part of items that are exempted from IGST.

2. GST Compensation to states shall be discussed in another meeting:

The states have been assured by the Finance Minister on taking up the matter of GST compensation period which as per the provisions is to end by FY22, said Punjab Finance Minister. The issue of cess shortfall was taken up and many of the states said the shortfall should be transferred as grant and the entire shortfall should be compensated by the state.

3. GST Amenesty Scheme Recommended to ease taxpayers burden:

An amnesty scheme has been recommended for lowering late fee, said the finance minister. This shall provide the much needed ease to small tax payers. Taxpayers as part of the scheme can file their pending returns with a reduced late fee. "The maximum amount of late fee has been reduced and will come into effect from future tax periods."

4. GST Annual return filing:

For small taxpayers with turnover less than Rs. 2 crore, annual return filing shall be optional for FY21. Those with turnover of Rs. 5 crore or more would need to furnish reconciliation statement for 2020-21.

5. GST compensation cess fomula unchanged:

The finance minister said for the purpose of calculating GST compensation cess, formula has been left unchanged. The center forrecasts that it would need to borrow Rs. 1.58 trllion and would have to pass on to states as back-to-back loans

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