What did various people speak on the matter?
The states who have previously received small amounts, have been
decided to be handed over around 24000 crore IC of IGST, as per the decision
made by the council, by the end of the coming week.
The Finance Minister Nirmala Sitharaman after the completion of 42nd Goods and Services Tax (GST) Council meet stated that compensation tax collected this year till now, around 20000 crore IC, will be distributed to the states. The compensation taxes have been extended beyond June 2022 by the center. But there has been failure on reaching consensus on borrowing issues for making up for shortfall of compensation, by the center and the states, in the meeting held on Monday
Divakar Vijayasarathy, Founder and Managing Partner, to DVS Advisors LLP, commented on the result of 42nd GST Council Meet. According to him, the decision of distribution of 20000 crores IC of compensation tax collected so far to the states, IGST devolution ‘s resolution, decision made on only quarterly returns for small taxpayers are appreciated. It is an indication of the ability of the council of resolving other pending issues despite the differences on issues related to compensation. It is worth noting.
What are the various key updates from 42nd GST
Council Meet?
The various key updates from 42nd GST Council Meet
are listed below:
The attempt of the center and states to reach to consensus about borrow issue for making up for shortfall of the compensation in 42nd GST Council Meet failed. Therefore, the next meeting has been scheduled to take place on 12th October.
The long pending matter of IGST, that stands for Integrated Goods and Services Tax, has been resolved by the centre. Also the states who previously gained more IGST than they actually had, didn’t have any burdens to face, according to the statement from the finance minister.
At the end of the coming week, a decision has been made by the GST Council to release an amount of 24000 crore IC of IGST to the states who previously received low amount. Bihar minister Sushil Modi led committee found a solution for sorting out IGST devolution issue. 24000 crore IC to be given to the states who previously received less amount. Also finance minister stated that they didn’t expect or ask states to pay back dues.
The compensation taxes have been extended beyond June 2022 by the GST Council.
To be effective from January 1, taxpayers with annual turnover below 5 crores IC aren’t necessary to file monthly returns i.e. GSTR 3B and GSTR 1. According to Ajay Bhushan Pandey, the finance secretary, they will be filing quarterly returns only.
Ajinkya Gunjan Mishra, Partner, L and L Partners, made a
statement on this that the GST council suggested some of the ways of minimizing
the compliance burden. Small taxpayers having annual turnover below 5 crore IC,
are expected to get the maximum advantages from these compliance initiatives.
The taxpayers (having GST registration ) having turnover
above 5 crore IC are mandatory to mention HSN codes up to 6 digits. HSN code up
to 4 digits have to be mentioned by the taxpayers with turnover below 5 crore
IC. If government feels necessity of closer tracking in certain classes of
goods, HSN codes will be of 8 digits. According to Finance secretary,
government shall notify these things.
According to statement made by finance secretary after the
Council meeting, satellite launch services by ISRO, Antrix, have been exempted
by the GST Council.
According to Pandey, in order to check the refunds, bank
accounts validated by PAN and Aadhar, shall be handed to those bank accounts. Also,
a decision made by GST Council states refund applications can be signed through
Aadhar.
