42.GST New Returns E Flyer 180919

42nd Meeting of the GST Council, New Delhi
05th October, 2020

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PRESS RELEASE
The GST Council, in its 42nd meeting held on 05.10.2020, has made the following
recommendations:
1. Levy of Compensation Cess to be extended beyond the transition period of five years i.e.
beyond June, 2022, for such period as may be required to meet the revenue gap. Further
details to be worked out.
2. Centre is releasing compensation of ₹ 20,000 crore to States today towards loss of revenue
during 2020-21 and an amount of about ₹ 25,000 crore towards IGST of 2017-18 by next
week.
3. Enhancement in features of return filing: In its 39th Meeting held in March 2020, the
Council had recommended an incremental approach to incorporate features of the new return
system in the present familiar GSTR-1/3B scheme. Various enhancements have since been
made available on the GST Common Portal. With a view to further enhance Ease of Doing
Business and improve the compliance experience, the Council has approved the future
roadmap for return filing under GST. The approved framework aims to simplify return
filing and further reduce the taxpayer’s compliance burden in this regard significantly,
such that the timely furnishing of details of outward supplies (GSTR-1) by a taxpayer and his
suppliers would –(i) allow him to view the ITC available in his electronic credit ledger from
all sources i.e. domestic supplies, imports and payments on reverse charge etc. prior to the
due date for payment of tax, and (ii) enable the system to auto-populate return (GSTR-3B)
through the data filed by the taxpayer and all his suppliers. In other words, the timely filing
of GSTR-1 statement alone would be sufficient as the return in FORM GSTR-3B would get
auto prepared on the common portal. To this end the Council recommended / decided the
following:
a. Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th

of the month succeeding the quarter w.e.f. 01.1.2021;
b. Roadmap for auto-generation of GSTR-3B from GSTR-1s by:
i. Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and
ii. Auto-population of input tax credit from suppliers’ GSTR-1s through the
newly developed facility in FORM GSTR-2B for monthly filers w.e.f.
01.01.2021 and for quarterly filers w.e.f. 01.04.2021;
c. In order to ensure auto population of ITC and liability in GSTR 3B as detailed above,
FORM GSTR 1 would be mandatorily required to be filed before FORM GSTR3B
w.e.f. 01.04.2021.
d. The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the
GST laws to be amended to make the GSTR-1/3B return filing system as the default
return filing system.
4. As a further step towards reducing the compliance burden particularly on the small
taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier
recommendation of allowing filing of returns on a quarterly basis with monthly
payments by such taxpayers to be implemented w.e.f. 01.01.2021. Such quarterly taxpayers
would, for the first two months of the quarter, have an option to pay 35% of the net cash tax
liability of the last quarter using an auto generated challan.
5. Revised Requirement of declaring HSN for goods and SAC for services in invoices and in
FORM GSTR-1 w.e.f. 01.04.2021 as under:
a. HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with
aggregate annual turnover above Rs. 5 crores;
b. HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with
aggregate annual turnover upto Rs. 5 crores;
c. Government to have power to notify 8 digit HSN on notified class of supplies by all
taxpayers.
6. Amendment to the CGST Rules: Various amendments in the CGST Rules and FORMS
have been recommended which includes provision for furnishing of Nil FORM CMP-08
through SMS.
7. Refund to be paid/disbursed in a validated bank account linked with the PAN & Aadhaar of
the registrant w.e.f. 01.01.2021.
8. To encourage domestic launching of satellites particularly by young start-ups, the satellite

launch services supplied by ISRO, Antrix Corporation Ltd. and NSIL would be exempted.
*****
Note:- The decisions of the GST Council have been presented in this note in simple language
for easy understanding. The same would be given effect to through Gazette notifications/
circulars which alone shall have force of law.

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42nd Meeting of the GST Council, New Delhi

05th October, 2020

a. Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th

8. To encourage domestic launching of satellites particularly by young start-ups, the satellite

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