Current Affairs PDF

43rd GST Council Meet: FM Announced Amnesty Scheme for Reducing Late Fees

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

43rd GST Council meetingThe 43rd Goods and Services Tax (GST) Council met virtually under the Chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman. The Council recommended the ‘Amnesty Scheme’ to reduce the late fees payable for pending returns by small taxpayers & medium-sized taxpayers (aggregate turnover upto Rs 5 crore).

Relaxation Period for Trade Facilitation:

i.Those taxpayers who are registered under GST and have not filed their returns, GSTR-3B for the tax periods from July, 2017 to April, 2021 can avail the benefit of this Amnesty Scheme. Those returns have to be filed on or before 31st August, 2021(Relaxations came to effect on June 01,2021).

ii.At present, the Amnesty Scheme could benefit around 89 percent GST Taxpayers, as they could file their pending returns without any high penalty.

iii.Late fee has been limited to a maximum of Rs 500 (Rs. 250 each for CGST and SGST) per return for taxpayers who did not have any liability for the stated tax periods. Meanwhile, late fee has been limited to a maximum of Rs.1,000 (Rs 500 each for CGST and SGST) per return for other taxpayers.

-COVID-19 related Supplies exempted from IGST till August 31, 2021

  • COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from Integrated Goods & Services Tax (IGST) till August 31, 2021.
  • Amphotericin B, a key medicine for the treatment of black fungus is also recommended to be included in the list of items exempted from IGST.

Note – IGST is charged on goods and services moved from one state to another, and the revenue out of IGST is shared by the state government and central government.

Other Key Facts:

i.The GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5 percent (from 12 percent).

ii.The advance payment of Rs 4,500 crore to two Covid-19 vaccine manufacturers was mentioned in the meeting.

iii.Currently, the domestic supplies and commercial imports of vaccines attract a 5 percent GST, and the COVID-19 drugs and oxygen concentrators attract a 12 percent.

iv.Compensation payable to states: Under which, the Centre has estimated the shortfall at Rs 2.69 lakh crore, in which the centre plans to compensate Rs 1.11 lakh crore by collecting it over through cess on luxury, demerit and sin goods. (Remaining Rs 1.58 lakh crore would be borrowed)

Recent Related News:

According to a notification by the Central Board of Indirect Taxes & Customs (CBIC), Government is set to mandate Electronic-invoicing (e-invoicing) under the Goods and Services Tax (GST) regime for business entities with a turnover of INR 50 Crore & more from April 1, 2021 (start of next financial year) for business to business transactions.

About GST Council:

i.It was constituted on 15th September 2016 under Article 279A of the Constitution.

ii.It is an apex member committee to modify or to procure any law or regulation based on the context of GST in India.

iii.The council is headed by the union finance minister (Current- Nirmala Sitharaman) assisted by the finance minister of all the states of India.