The GST Council met after a gap of 7 months via video conferencing to discuss matters on GST relief for Covid supplies, increasing compensation to states among other agendas. Here are important updates:
1. Late fee for non-furnishing Form GSTR 3B (monthly GST return for output supply) for the period from July 2017 to April 2021 has been reduced or waived. The same shall be applicable in case the GSTR-3B return for these tax period has been provided between June 1, 2021 to August 31, 2021.
2. The upper cap of late fee is being rationalised to align late fee with tax liability or turnover of the taxpayer. It has been kept at a maximum of Rs. 500 per return for taxpayers who have notax liability for the said tax period.
Late fee has been limited to Rs. 1000 per return for other taxpayers.
3. Filing of annual GST return in form 9/ 9A is optional for those with annual turnover less than Rs. 2 crore for FY 2020-21.
4. The reconciliation statement in Form GSTR 9C shall has to be furnished by taxpayer with annual turnover of over Rs. 5 crore and more.
5. Amendments have been recommended that have been made by the GST Council in some of the provisions such that the present GSTR 1/3 B filing becomes a default practice.
6. Group of ministers to be formed to decide GST rate on Covid related medicine in next 10 days time.
7. Annual return for financial year FY 2021 has been simplified.
8. Law committee shall work on the contours of the quarter return quarterly payment (QRQP) scheme.