43rd GST Council Meeting Updates

The 43rd GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing today i.e. 28th day of May, 2021 via video conferencing in New Delhi.

43rd GST COUNCIL MEETING KEY HIGHLIGHTS 

The GST Council has made the following key decisions /recommendations 

1. Council has decided to exempt import of relief items and is being extended till October 31, 2021

2. Import of medicine for black fungus, that is Amphotericin B, has also been included in the exempted category. 

3. Import of Covid-related relief items, even if purchased or meant for donating to government or to any relief agency upon recommendation of state authority, to be exempted from IGST till August 31, 2021. 

4. Amnesty scheme: To provide relief to small taxpayers, an Amnesty scheme has been recommended for reducing late fee payable by small taxpayers & medium-sized taxpayers. Amnesty Scheme Recommended to Benefit 89\\% GST Taxpayers.

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5. Rationalization of Late fee for Small Taxpayers to be applicable to future liabilities. Taxpayers can now file their pending returns and avail the benefits of this Amnesty scheme with reduced late fees. Maximum amount of late fee has been also reduced and will come into effect from future tax periods.   

6. Annual Return Filings under GST: The Annual Return filing will continue to be optional for FY 2020-21 for small taxpayers, having a turnover less than Rs. 2 crores while reconciliation statements for 2020-21 will be furnished only by those taxpayers whose turnover is Rs 5 crores or more. A law committee will look into issues involving quarterly return filing and quarterly payment, the modalities for which are yet to be worked out. 

7. Session on Compensation cess: A special session dedicated to compensation cess collection beyond July 2022 will be convened. Centre to borrow Rs. 1.58 lakh crore to meet states' compensation demand this fiscal. 

8. GST Compensation cess formula from last year to be retained. 9. New rates in exemptions: Group of ministers to be formed quickly, who will examine need for further reductions & decide on any new rates in exemptions and will submit the report on reduction of rates on COVID-related items by June 8, 2021.