Highlights of Recommendations made by 42nd GST Council Meet
The 42nd GST Council met on October 5, 2020 under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman.
The GST Council made the following recommendations:
- GST Compensation Cess levy have been extended beyond the transition period of five years i.e. beyond June, 2022.
- Compensation of ₹ 20,000 crore have been released towards States to compensate the loss of revenue during 2020-21 .
- Features of return filing have been enhanced with an aim to simplify return filing and reduce the taxpayer’s compliance burden in this regard significantly.
- 18% of GST levied on Indian firms for launching their satellite have been exempted to encourage the domestic launching .
- Small Tax payers (Having annual turn over of less then Rs 5 crores) have been given flexibility over filing returns. They need not file monthly returns from January 1, 2021.
- Taxpayers with turnover more than Rs 5 crores will now have to provide a Harmonised System Nomenclature (HSN) Code from April 2021.
- To get the refunds Aadhaar authentication has been made mandatory.
- Extension of the compensation cess levy period would increase the prices of goods that levy cess.
- The meet also failed to resolve the issue of paying an estimated ₹2.35 lakh crore shortfall in compensation cess.
It is a governing body of GST with 33 members. Two members are from centre and 31 members are from 28 state and 3 Union territories with legislation. Union Finance Minister is the chairperson of council. Other members include- Union Minister of States in charge of revenue or finance , ministers of states in charge of finance or taxation and other ministers as nominated by each states government. The council modify, reconcile and procure any law or regulation in the context of goods and services tax (GST).