As per the recent tweet of CNBC-TV18, the Government Sources says the GST Council to take up issues like compensation cess, ease in compliance & fitment committee’s take on rates for ayurvedic & alcohol-based sanitisers. The council will meet on October 05, 2020 via video conferencing.
Sources on GST cess compensation issue
- Council to discuss ongoing compensation issue
- Likely to revisit two options given by Centre to meet compensation shortfall
- Centre to present calculation of compensation cess collected and released so far
- According to Centre, only Rs 15,000cr is balance of cess collected & not released so far
- Average revenue gap between April-August of states has risen to 56% in 2020 vs 21% in 2019
- GST Council to consider proposal to extend cess period beyond 5 years, likely to consider extending cess by 2 more yrs to meet shortfall
- Council likely to constitute a committee of officers to work out anticipated shortfall and other issues
Sources on GST rates
- GST Council-nominated fitment committee proposes no distinction should be made in ayurvedic & alcohol-based hand sanitisers
- Fitment committee examined in detail proposal to reduce rates for Ayurveda/Unani/Siddha ingredients based hand sanitizer from 18 to 12%
- Fitment Committee leaves it for Council to consider whether to re-classify ayurvedic hand sanitiser under ayurvedic products category & not in disinfectant category
- Ayurvedic products attract 12% GST, disinfectants attract 18% GST
Sources on GST Compliance
- GST Council likely to allow UPI & IMPS Option to make payment. Currently payments can be made by only GST-authorised banks
- GST Council to extend GSTR-1 & 3B system till March 21
- Council to change due date of filing of GSTR-1 by quarterly taxpayers till 13th of month next to the quarter
- Council to consider limiting period for taking cognisance of prosecution under GST Act
- Council likely to limit the period in case of fine to a max of six-month imprisonment, in case of imprisonment between 1-3 years to 3 years
Source: https://twitter.com/CNBCTV18Live/status/1312014018572238849