Finance Minister Nirmala Sitharaman while addressing the media on the outcomes of the 43rd GST Council meeting on Friday informed that the Centre would apply the same formula on GST compensation cess as last year. The Minister informed that the GST compensation cess, will have the same formula as last year and the rough estimate is that the Centre will have to borrow Rs. 1.58 Lakh Crore and pass it on to States.
Like last year, GST Council felt that this is not the appropriate time for correction in Inversion duty, so this remains where it is. To provide relief to small taxpayers, amnesty scheme has been recommended for reducing late fee to benefit around 89% of GST taxpayers, they can file pending returns, avail benefits of scheme, with reduced late fees.
The late fees have also been rationalized Maximum amount of late fee has been reduced; will come into effect from future tax periods This will provide long-term relief for small GST Taxpayers, the minister informed.
FM added that “Import of COVID-related relief items, even if purchased or meant for donating to Govt. or to any relief agency upon recommendation of State authority, to be EXEMPTED from I-GST till 31 Aug 2021”.
“AmphotericinB (required for treating Mucormycosis fungal infection) has also been included in list of items EXEMPTED from I-GST, in view of rising cases of the infection. AmphotericinB included in the list of items exempted from IGST Group of Ministers to be formed quickly (by tomorrow), who will submit report by 8 June 2021; to examine need for further reductions & decide on any new rates in exemptions” FM said.
The Annual Return Filing will continue to be optional for 2020-21, for small Taxpayers with turnover less than Rs. 2 Crore, Reconciliation statements for 2020-21 to be furnished by taxpayers with turnover of Rs. 5 Crore or more. Law Committee will look into issues involving Quarterly Return Filing and Quarterly Payment, the modalities need to be worked out
As we are in the last of the 5 yrs of 14% compensation protected revenue arrangement, I’ve assured the members, we’ll hold special session of GST Council, exclusively on single-point agenda of how compensation cess be collected, how long, how much, beyond July 2022: FM Sitharaman Annual return filing has also been simplified. The Council has recommended amending the CGST Act to allow for self-certification of reconciliation statements, instead of getting it certified by Chartered Accountants: FM Nirmala Sitharaman after 43rd GST Council meet