The GST Council’s 45th meeting has made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure.

Updated on: 22nd September 2021

  1. Recommendations relating to GST law and procedure
    1. Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed as under:
      • Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months;
      • Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.
    2. There was no clarity on whether to pay interest for ineligible credit at the time of availment or after both availment and utilization for payment of tax.  Council decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% w.e.f. 01.07.2017.
    3. Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons (entities having same PAN but registered in different states), without going through the refund procedure, subject to certain safeguards
    4. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large  (Circulars awaited)
      • Clarification on scope of “intermediary services”
      • Clarification relating to interpretation of the term “merely establishment of distinct person” in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services.  This was applicable for transaction between Head office and foreign branch of Head office.
      • W.e.f. 01.01.2021, the date of issuance of debit note (and not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017;.  As per section 16(4), there is a time limit upto September or filing of annual return whichever is earlier to avail the Input Tax Credit for a FY.  Now, it is clarified that date of Debit Note to be considered for time limit.
      • There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules, 2017 i.e. under e-invoicing provisions.
  2. Measures for streamlining compliances in GST:
    • Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration
    • Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.
    • Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.
    • Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.
    • Rule 36(4) (Limit of additional credit on unmatched credit upto 5%) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.  As per clause (aa) of section 16(2) of CGST Act, 2017, condition to avail ITC is supplier files GSTR 1 return and available to the receiver in his 2B.  Hence, after implementation of this provision, it looks like the intention of the government is to remove additional 5% provided under rule 36(4) of CGST Rules.
    • GST Council has also recommended amendments in certain provisions of the Act and Rules which will be notified soon.
  3. Changes pertaining to rate of Goods:
    • COVID-19 relief measure in form of GST rate concessions:  Extension / further reduction of concessional GST rates on certain drugs for Covid 19 treatment.  This is applicable upto 31st Dec 2021.
    • Reduced / Increased rates on some goods like Retro fitment kits for vehicles used by the disabled, Fortified Rice Kernels etc.
    • Supply of mentha oil from unregistered person has been brought under reverse charge.
    • Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20 lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.
    • Correction in Inverted Duty structure in Footwear and Textiles sector
    • In terms of the recent directions of the Hon’ble High Court of Kerala, the issue of whether specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage.
  4. Changes pertaining to rate of Service:
    • Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022.
    • Exempted Services by way of grant of National Permit to goods carriages on payment of fee
    • Exempts Skill Training for which Government bears 75% or more of the expenditure [ presently exemption applies only if Govt funds 100%].
    • Licensing services/ the right to broadcast and show original films, sound recordings, Radio and Television programmes [ to bring parity between distribution and licencing services].  Rate increased from 12% to 18%.
    • Printing and reproduction services of recorded media where content is supplied by the publisher (to bring it on parity with Colour printing of images from film or digital media). Rate increased from 12% to 18%.
    • E Commerce Operators are being made liable to pay tax on following services provided through them
      • transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January, 2022]
      • restaurant services provided through it with some exceptions [w.e.f. 1st January, 2022]
  5. Certain clarifications provided in relation to rate on Goods to remove the ambiguity in the law.  Please refer attached press release for list of such clarifications provided.
  6. Certain clarifications provided in relation to rate on Service to remove the ambiguity in the law.   Please refer attached press release for list of such clarifications provided.
  7. The Council decided to set up a GoM to examine the issue of correction of inverted duty structure for major sectors; rationalize the rates and review exemptions from the point of view of revenue augmentation, from GST. It was also decided to set up a GoM to discuss ways and means of using technology to further improve compliance including monitoring through improved e-way bill systems, e-invoices, FASTag data and strengthening the institutional mechanism for sharing of intelligence and coordinated enforcement actions by the Centre and the States.

Easing of Income Tax Compliance.

(Time limit for following compliances extended by 15days to two months or more)

Updated on: 22nd September 2021

Compliance Extension
Extension of time limit to link PAN and Aadhar under Section 139AA 31-Mar-22

Easing of Income Tax Compliance.

(Time limit for following compliances extended by 15days to two months or more)

Updated on: 09 September 2021

Compliance Extension

Due date for filing return of income for the assessment year 2021-22 for all Assessee other than

  1. corporate-Assessee or
  2. non-corporate Assessee (whose books of account are required to be audited) or
  3. partner of a firm whose accounts are required to be audited or the spouse of such partner if the provisions of section 5A applies or
  4. an Assessee who is required to furnish a report under section 92E.
31-Dec-21
Due date for filing tax audit report for the assessment year 2021-22 in the case of assessees/ partnership firms who are subjected to audit under the Income Tax Act. 15-Jan-22
Due date for filing audit report for the assessment year 2021-22 in the case of assessees who have entered into international/ specified domestic transcation under the Income Tax Act. 31-Jan-22
Due date for filing return of income for the assessment year 2021-22 in the case of assessees/ partners of partnership firms who are subjected to audit under the Income Tax Act 15-Feb-22
Due date for filing return of income for the assessment year 2021-22 in the case of assessees who have entered into international/ specified domestic transction under the Income Tax Act. 28-Feb-22
Due date for filing revised/ belated return of income for the Assessment Year 2021-22 under the Income Tax Act. 31-Mar-22

Easing of Income Tax Compliance.

(Time limit for following compliances extended by 15days to two months or more)

Updated on: 25th June 2021

Compliance Extension
Filing TDS Statements From June 30 to July 15
Issuing tax deduction certificate From July 15 to July 31
Filing foreign remittance statement From July 15 to July 31
Submission of registration of trusts and institutions From June 30 to August 31
Submitting form for equalisation levy From June 30 to July 31
Uploading of form of no TDS claims cases From July 15 to August 31
Submitting objection to dispute resolution panel From June 1 onwards to August 31
Submitting option to withdraw cases from settlement commission From June 27 to July 31

Relief to Income Tax Payers

Updated on: 25th June 2021

  • Time to invest in Residential House for tax deduction extension for more than 3months.Investment required to be made on or after 1st April can be made upto 30th September
  • PAN Aadhar Linking extension of 3months from 30th June to 30th September
  • Vivad se Vishwas Payment without interest- extension by 2months (30th June to 30th August)
  • Closing the scheme with interest in the next 2months by 31st October
  • Time for making assessments and pass penalty offer – extension for 3 months 30th June to 30th september

Income Tax Concession for Payments towards Covid Treatment or Death

Updated on: 25th June 2021

Amount paid for medical treatment to an employee by employer or to any person by any other person on account of treatment of Covid for FY 19-20 and subsequent year would not be taxed in the hands employee or the person receiving the benefit.

Ex-gratia payment by an employer to an employee’s family, or by any other person to any person’s family on death of the employee or any other person on account of Covid for FY19-20 or subsequent year would be exempt from tax, restricted to 10lakhs

IT department releases new utility file to check vendor compliance

Updated on: 25th June 2021

IT department has released a new utility file to check for the vendor compliance details which are required to meet new Income Tax TDS provisions w.e.f. 1st July 2021.