The 42nd GST Council held on 05 OCT 2020, recommends timelines for major changes in GSTR Filings

The 42nd GST Council held on 05 OCT 2020, has made the following recommendations:

1. Levy of Compensation Cess to be extended beyond five years i.e. beyond June, 2022.

2.  Enhancements to enable Auto population of GSTR 3B from GSTR 1 filed by the tax payer and ITC form the GSTR1 filed by the suppliers and auto calculation of tax liability in GSTR 3B. To this end the Council recommended / decided the following:

a. Quarterly GSTR-1 due date to be 13th of the month succeeding the quarter: w.e.f. 01.1.2021

b. Auto-population of liability from own GSTR-1: w.e.f. 01.1.2021

c. Auto-population of input tax credit from suppliers’ GSTR-1s (through FORM GSTR-2B):

        i. for monthly filers- w.e.f 01.01.2021

        ii. for Quarterly filers- w.e.f 01.04.2021

3. In  order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORM GSTR 1 would be mandatorily required to be filed before FORM GSTR3B w.e.f. 01.04.2021.

4. For small taxpayers having aggregate annual turnover < Rs. 5 cr., allowing filing of returns (GSTR 3B) on a quarterly basis to be implemented w.e.f. 01.01.2021. 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.

5. Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1w.e.f. 01.04.2021 as under:

     a. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;

     b. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto Rs.  5 crores;

     c. Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.

6. Refund to be paid/disbursed in a validated bank account linked with the PAN &Aadhaar of the registrant w.e.f. 01.01.2021.

Relevant notifications may follow