GST (Good and Services Tax) is an indirect tax levied on the supply of goods and services. The GST Council is an apex member committee meets to discuss and lay GST laws that will benefit dealers across the nation. Union Finance Minister Nirmala Sitharaman, along with Minister of State Finance Anurag Thakur, is chairing the 39th GST Council Meeting in New Delhi on March 14, 2020.
The highlight of the 39th GST Council Meeting:
- Implementation of the new GST return system has been postponed to October 1, 2020. Also, the application of e-invoicing, the QR code has been deferred to October 1, 2020.
- Changes in the GST rates. Now GST on mobiles and its parts are increased from 12% to 18%.
- All types of matchsticks, whether handmade and machine-made, have been rationalized to 12 percent from 5 percent for handmade and 18 percent for machine-made earlier.
- Interest for delated GST payment will be calculated on the net cash tax liability instead of gross with effect from July 1, 2017.
- GST-9C filing deadline for a small business relaxed.
- Due to date for filing annual return and reconciliation statement for FY19 extended.
- For those less than Rs. 2 crore aggregate turnover in FY 2017-18 and FY 2018-19, there won’t be any late fee charged.
- Know your supplier being introduced so that every business has information of suppliers they are in business.
- The tax rate on maintenance, repair, and overhaul of aviation was cut from 18 percent to 5 percent.
- The time limit for finalization of the e-wallet scheme for consumers is extended till March 31, 2021.
Nirmala Sitharaman said that the GST Council told Infosys that there needs to be a sustainable solution to the series of technical glitches and reports of the Goods and Services Tax Network being unable to handle the load.