OCT 2020, Issue No. II

GST

Clarification relating to application of Rule 36(4) of the CGST Rules, 2017 for the months of February, 2020 to August, 2020 issued.  Total ITC availed for the said months in FORM GSTR-3B should not exceed 110% of the total ITC available in invoices/debit notes uploaded by the suppliers in their GSTR-1. The 10% Rule will apply independently for September, 2020.

42^nd GST Council Meeting decisions:

1. Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyond June, 2022;
2. From 01.04.2021 – GSTR-3B to become auto-populated.
3. From 01.01.2021 – Auto-population of liability from own GSTR-1.
4. From 01.01.2021 – Auto-population of ITC from suppliers’ GSTR-1s in FORM GSTR-2B (for quarterly filers  – from 01.04.2021).
5. GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.
6. From 01.01.2021 – Due date of quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarter.
7. From 01.01.2021 – Returns to be filed on quarterly basis by taxpayers with aggregate turnover less than Rs.5 Crore.
8. Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1 from 01.04.2021 as under:
9. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above ₹ 5 crores;
10. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto ₹ 5 crores.
11. Provision for furnishing of Nil FORM CMP-08 through SMS.
12. From 01.01.2021 – Refund to be paid/disbursed in a validated bank account linked with the PAN & Aadhaar of the registrant.
13. To be exempted – Satellite launch services supplied by ISRO, Antrix Corporation Ltd. and NSIL.

CUSTOMS

• Blade steel, or commercially known as razor blade grade steel used in the production of razor;
• Coin blank, falling under tariff item 7326 90 99 of the Custom Tariff Act, used in the production of monetary coins;
• Flat rolled products of stainless steel of thickness greater than 80 millimeters;
• Flat rolled products of stainless steel of width more than 1650 millimeters for use in the same form without slitting into products having width lower than 1650 millimeters after importation.

DGFT