While the conclusion of the Goods and Services Tax (GST) Council meeting came with the welcome news of no change in the rates on fertilisers and footwear, that on mobile phone devices has risen from 12% to 18%. The proposal to rationalise GST rates on textile items has been rejected.
The council made it mandatory to fill the GSTR-1 form for B2B (business-to-business) supplies and exports. The council decided to extend the deadline for filing the GST9R and GSTR9C for FY18-19 to 30 June.
Filing will be mandatory for taxpayers over Rs 5 crore of annual turnover. The previous deadline was 31 March and the turnover limit Rs 2 crore.
The 39th meeting of the GST Council took place today. Finance Minister Nirmala Sitharaman and senior officials of several states attended the meeting. The delegates discussed among other things the impact of the coronavirus outbreak in the country on the economy.
Domestic maintenance, repair and overhaul service providers have got relief. The council made this decision to bring equality in the input tax credit of 5%.
Delayed GST payment will attract interest on net tax liability from 1 July.
The finance minister said that the government had collected Rs 78,000 crore as compensation cess. The total compensation related to stats is over Rs 1.2 lakh crore, she said.
Sources said Nandan Nilekani had given a detailed presentation to remove technical flaws in the GST network. He has assured the council that by January 2021 all technical flaws associated with GSTN will be removed.
The GST Council reviewed the IT glitches, as pointed out, thoroughly. Bihar Deputy Chief Minister Sushil Modi made a presentation on the IT challenges too.
Sitharaman said that Infosys would provide a better GST system by July. She said Nilekani would attend the next three meetings of the GST Council, update the council on the status of implementation of the council’s decisions and assist in making appropriate decisions on technology-related issues.
Nilekani meanwhile asked for time until January 2021 to ensure smooth functioning of GST’s IT systems.
The government had expressed hope last month that the impact of decisions like that on GST will be seen in the coming days.