The 48th GST Council meeting, held on December 22, 2020, focused on several measures to boost the Indian economy, especially in light of the COVID-19 pandemic. Here are some of the key decisions taken at the meeting:
The GST Council decided to provide a one-time waiver of late fees for non-filing of GSTR-3B returns for the period from July 2017 to January 2020. This was aimed at providing relief to small taxpayers who were facing difficulties due to the pandemic.
The Council made several changes to the GST rates for certain goods and services, with the aim of reducing the burden on consumers and boosting demand. For example, the Council reduced the GST rate on fertilizers from 12% to 5%, and on the maintenance, repair, and overhaul services for aircraft from 18% to 5%.
The GST Council decided to extend the levy of GST compensation cess beyond the transition period of five years (which ended in June 2022) for states to continue receiving compensation for revenue losses.
The Council decided to introduce a new quarterly return filing system for taxpayers with a turnover of up to Rs. 5 crore, in order to simplify the compliance process and reduce the burden on small taxpayers.
The Council introduced several measures to improve compliance under GST, such as the implementation of an auto-populated GSTR-3B form, and the introduction of a new electronic invoice system (e-invoicing) for businesses with a turnover of more than Rs. 100 crore.
The Council introduced new provisions for GST registration, such as Aadhaar authentication and physical verification of the place of business. This was aimed at preventing fake registrations and reducing tax evasion.
The Council introduced new provisions for the GST audit process, such as the appointment of a special auditor in cases where there is a suspicion of tax evasion. This was aimed at improving the quality of GST audits and preventing tax evasion.
The Council made several changes to the GST composition scheme, such as increasing the turnover threshold for eligibility and reducing the tax rate for certain goods and services. This was aimed at promoting the ease of doing business for small taxpayers.
The Council announced a GST amnesty scheme, which allowed taxpayers to settle their pending GST dues without any interest or penalty. This was aimed at reducing the burden on taxpayers and improving compliance under GST.
The decisions taken at the 48th GST Council meeting were aimed at addressing some of the key challenges faced by taxpayers under GST, such as compliance and tax evasion. These measures are expected to provide relief to taxpayers, promote the ease of doing business, and boost the Indian economy in the long term.
A: The 48th GST Council meeting took several key decisions, including:
1. Extending the GST compensation cess: The Council extended the GST compensation cess beyond June 2022, which will provide relief to states facing revenue shortfalls.
2. Rationalizing GST rates: The Council rationalized GST rates for certain goods and services, such as COVID-19 related goods and services, textiles, and footwear. This was aimed at providing relief to consumers and promoting domestic manufacturing.
3. Reducing the compliance burden: The Council simplified the GST return filing process and introduced new measures to reduce the compliance burden for taxpayers, such as quarterly return filing for small taxpayers and auto-population of returns.
4. Streamlining e-invoicing: The Council made several changes to the e-invoicing process, such as increasing the turnover threshold for eligibility and introducing new exemptions. This was aimed at promoting the ease of doing business and reducing the compliance burden.
5. Introducing new measures to prevent tax evasion: The Council introduced new measures to prevent tax evasion, such as the blocking of input tax credit (ITC) for taxpayers who do not comply with the GST rules.
A: The decisions taken at the 48th GST Council meeting are expected to have a positive impact on the Indian economy in the long term. By reducing the compliance burden and preventing tax evasion, these measures are expected to improve the ease of doing business in India and promote economic growth. The rationalization of GST rates for certain goods and services is expected to provide relief to consumers and promote domestic manufacturing. The extension of the GST compensation cess is expected to provide relief to states facing revenue shortfalls, which will help them undertake developmental activities. Overall, these decisions are expected to provide a boost to the Indian economy and improve compliance under GST.
A: The GST compensation cess is a tax levied on certain goods and services to compensate states for revenue losses resulting from the implementation of GST. The cess was introduced to provide relief to states that faced revenue shortfalls due to the GST transition. The GST Council extended the GST compensation cess beyond June 2022 to provide relief to states facing revenue shortfalls. The decision to extend the cess was taken in the wake of the COVID-19 pandemic, which has had a severe impact on the Indian economy. The extension of the cess is expected to provide relief to states and help them undertake developmental activities.
A: E-invoicing is a system for generating invoices electronically and reporting them to the GST portal in a standard format. The e-invoicing system was introduced to reduce the compliance burden for taxpayers and improve tax compliance. The 48th GST Council meeting made several changes to the e-invoicing process, such as increasing the turnover threshold for eligibility and introducing new exemptions. These measures are aimed at promoting the ease of doing business and reducing the compliance burden for small taxpayers. The Council also announced the launch of a new e-invoicing portal, which will make the e-invoicing process more streamlined and efficient.
A: The GST composition scheme is a scheme for small taxpayers that allows them to pay a fixed rate of tax based on their turnover. The scheme was introduced to provide relief to small taxpayers and promote the ease of doing business. The 48th GST Council meeting made several changes to the composition scheme, such as increasing the turnover threshold for eligibility and reducing the tax rate for certain goods and services. These changes are expected to
Krishi Input Subsidy Scheme
GST registration restoration: cancelled without due service of SCN
Multiplier Grants Scheme
