The GST council in its 42nd meeting held on 05.10.2020 has made the following recommendations:
a) Compensation cess levy to be extended beyond the transition period of 5 years ending June, 2022 for such further period as may be required.
b) Enhancement in features of return filing for boosting ease of doing business as follows :
- Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarter w.e.f. 01.01.2021.
- 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;
- For ensuring 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 w.e.f. 01.04.2021.
- The present GSTR-1/3B 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.
c) To lower the compliance burden on small taxpayers having aggregate annual turnover < Rs. 5 crores, the council has recommended to allow filing of returns on a quarterly basis with monthly payments 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.
d) Revised requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1 w.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 digits HSN on notified class of supplies by all taxpayers.
e) Refund to be disbursed in a validated bank account linked with the PAN & Aadhaar of the registered person w.e.f. 01.01.2021.