Quarterly returns for small taxpayers
Relief to small taxpayers, the Council decided that the small taxpayers will be required to file returns quarterly. The number of returns of small taxpayers will also be reduced from 24 to 8 from January 2021.
Enhancement in features of return filing: The GST Council has decided to revise the due date of submitting quarterly GSTR-1 by quarterly taxpayers to 13th of the month succeeding the quarter effective from January 1, 2021.
Roadmap for auto-generation of GSTR-3B from GSTR-1s by Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and Auto-population of input tax credit from suppliers’ GSTR-1s through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021.
In order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1 would be mandatorily required to be filed before FORM GSTR3B e.f. 01.04.2021.
The current GSTR-1 and GSTR-3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.
– For small taxpayers having aggregate annual turnover of less than Rs 5 crore, the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021. Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay 35% of the net cash tax liability of the last quarter using an auto generated challan.
Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1 e.f. 01.04.2021 as under:
HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;
- HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto Rs. 5 crores;
- Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.
Amendment to the CGST Rules: Various amendments in the CGST Rules and FORMS have been recommended which includes provision for furnishing of Nil FORM CMP-08 through SMS.
Refund Related
Refund to be paid/disbursed in a validated bank account linked with the PAN & Aadhaar of the registrant w.e.f. 01.01.2021.
Compensation Cess
– Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June 2022, for such period as may be required to meet the revenue gap. Further details to be worked out.
– Centre to release compensation of Rs 20,000 crore to States today towards loss of revenue during 2020-21 and an amount of about Rs 25,000 crore towards IGST of 2017-18 by next week.
