Recommendations made:
- Compensation Cess extended beyond the period of 5 years i.e. June, 2022, till the period as may be required to meet the revenue gap
- Due date for furnishing quarterly GSTR-1 for quarterly tax-payers revised to 13th of the month succeeding the quarter w.e.f. 01.01.2021. (Currently the deadline is 11th of the month succeeding the quarter)
- Automation of GSTR-3B
- Auto population of liability from GSTR 1 w.e.f. 01.01.2021
- Auto population of input tax credit from supplier’s GSTR 1 through the newly form GSTR 2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f. 01.04.2021
- To ensure auto population of liability and ITC in GSTR 3B, form GSTR-1 would be mandatorily filed before form GSTR 3B w.e.f. 01.04.2021.
- The present GSTR-1/3B 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.
- Reducing compliance burden for small tax-payer
- Small taxpayers having aggregate annual turnover < Rs. 5 Cr would be allowed to file quarterly returns with the monthly payment requirements. 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. (w.e.f. 01.01.2021)
- Revised HSN and SAC requirements
- HSN/SAC of 6 digits required for taxpayers with aggregate annual turnover above 5 Crores
- HSN/SAC of 4 digits required for B2B supplies for  taxpayers with aggregate annual turnover upto 5 Crores
- Government to have power to notify 8 digit HSN code on notified class of supplies by all taxpayers
- Other misc. recommendations
- Various changes in the CGST Rules and forms have been recommended which includes provision for furnishing of NIL Form CMP-08 through SMS.
- Refund to be paid in a validated bank account linked with the PAN & Aadhar of the registrant w.e.f. 01.01.2021.
- To encourage domestic launching of satellites particularly by young start-ups, the satellite launch services supplied by ISRO, Antrix Corporation Ltd. & NSIL would be exempted.
Summary: Seeing at the recommendations of the 42nd council meet, the government is trying to make the GST laws including the system more system based & automated & thereby reduce the human errors, duplication/ ineligible claim of input tax credit.
Note: The decisions of the GST Council have been presented in this note in simple language for easy understanding. The same would be given effect to through Gazette notifications/circulars which alone shall have force of law.
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