Summary of important decisions taken at the GST Council meeting

- Sales tax: Soham Mashruwala

Relief decisions have been taken under the 9th meeting of the GST Council. Under the GST Act, a decision has to be taken to expedite the process for registration number. Today's article gives information about the decision taken in the meeting of GST Council held on 5th May 2021. It is decided that GSTR1 and GSTR3B will be the default system for filling the forms.

Relief due to COVID-19

All imports of medical oxygen, oxygen concentrators, other oxygen storage and transport equipment, specific diagnostic markers test kits, COVID-19 vaccines, etc. required to fight COVID-19 will be fully exempted from IGST till 31-7-2021. Previously this exemption was only available when imported goods were made for free delivery. Of particular note is a drug called amphotericin B.

Other concessions regarding supply of goods

1. DEC tablets used under a special program run in collaboration with WHO will be subject to 2% GST instead of 15%.

. Parts of Sprinkler, Drip Irrigation System will be subject to 12% GST on those goods when sold retail.

. The amount of goods imported after repairs has been changed to IGST.

Decision regarding service supply

1. Under any mid-day meal scheme sponsored by the government, the service of serving food including mid-day meal to any educational institution and anganwadi will be exempt from GST. GST will not be levied even if the funds for this work are made from government grants or private corporate donations.

. Entrance examinations conducted by the National Board of Examination (NBE) or similar Central or State Board of Management and any examination for which a fee is charged will be considered as a waiver supply and input services for providing this service will also be exempted from GST.

. The land owner by the developer promoter will get the GST majhar charged to the promoter while the bound property is being sold. B.U. Before permission came. In addition the developer promoter will now be allowed to pay GST. Upon sale of such bound property when B.U. If sold before permission.

. GST on MRO services in respect of ships will be reduced to 5% (from 15%).

. For B2b supply of MRO services in respect of ships / vessels the place of service recipient will be considered as place of supply.

. The ropeway construction service will be provided to a government entity and will be subject to 15% GST.

Forms-Late Fee, Interest

1. A settlement scheme for late fees will be worked out in which the supplier who does not have any tax liability from July 2018 to April 31 will have to pay a maximum of Rs. The form can be filled by paying 500 late fee and in other cases maximum Rs. The form can be filled by paying 1000 late fee. To avail the benefits of this scheme, GSTR3B will have to be paid from 1.6.21 to 31.3.21.

. Late fees of GSTR1 and GSTR3B will be turnover based from the current time due to which the maximum amount for delay in filing GSTR3B or 'nil' GSTR1 with 'nil' tax liability is Rs. There will be 200 late fees, and Rs. If the aggregate turnover up to Rs 1.5 crore is in the previous year, the maximum late fee will be Rs. 2000, if Rs. More than Rs 1.5 crore but Rs. If there is an aggregate turnover of up to Rs. 5000 late fee will be charged and in other cases maximum Rs. It will cost 10,000.

. For delay in filling 'nil' GSTR4 for composition supplier maximum Rs. 200 will be late fee and in other cases Rs. 3000 will remain.

. Steps will be taken to immediately implement the provision for payment on interest net cash basis by retrospectively amending Section 30 of the GST Act.