Key Takeaways of 43rd GST Council Meeting

The 43rd GST Council’s meeting held via video conferencing on 28th May 2021, headed by Union finance minister Mrs. Nirmala Sitharaman and other states’ finance ministers. The 43rd GST council meeting took place at a time when India is going through hard times due to Coronavirus second wave that has not only impacted the citizens but also derailed the recovery made by India after the first wave. However, the GST council meeting should take place once every quarter but due to the unprecedented situation, the 43rd GST council meeting was held almost after 7 Months. 

Key Takeaways of 43rd GST Council Meeting 

COVID Relief Measures 

1. The most important decision in the 43rd GST Council Meeting is that the GST Council suggested levying a 5% GST rate on the COVID-19 vaccination. 
2. The GST Council ruled out all the possibilities to notify COVID-related goods as zero-rated supply. However, all the COVID relief materials and medicines (including free of cost) are exempted till 31st August 2021. 
3. In the 43rd GST council meeting, the council decided to exempt Amphotericin B medicine for black, white, yellow fungus. 
4. The GST Council decided to form a group of ministers latest by 29th May 2021 to submit a report by 8th June 2021 carrying all the details related to the need to further reduce the GST rate on the COVID-19 relief material. 

GST Returns Related Relief Measures 

1. For all the small taxpayers who have not filed GSTR-3B, the GST council has announced the GST Amnesty scheme for them to reduce the late fee. Moreover, the GST council decided to permanently reduce the late fees for future GST Returns to be filed in the future by small taxpayers. 
2. Invoice Furnishing Facility (IFF) and GSTR-1 filing due date for the month of May 2021 have been extended by 15 days. 
3. The due date of ITC-04 for Jan-Mar 2021 and GSTR-4 for Financial Year 2020-21 has also been extended up to 30th June 2021 and 31st July 2021, respectively. 
4. The GST council has decided to waive the late fee and reduce interest on GSTR-3B or PMT-06 filing for March-May and CMP-08 for Jan-Mar 2021. 
5. In the 43rd GST council meeting, the council decided that the applicability of the Annual GST Return (GSTR-9) of Financial Year 2020-21 will remain optional for small taxpayers. 
6. Another major decision the GST council took was that the companies can file their GST returns using EVC instead of DSC until 31st August 2021.
7. The taxpayers can apply for the eligible ITC as per CGST Rule 36(4) cumulatively for April-June 2021 at the time of filing GSTR-3B of June 2021  

Other Relief Measures 

1. The time limit to complete compliances due from 15th April 2021 to 29th June 2021 has also been extended by the GST council till 30th June 2021. 
2. Another major announcement in the 43rd GST council meeting was the introduction of the Quarterly Return Quarterly Payment (QRQP) scheme based on the suggestions of the law committee. Unlike the QRMP scheme, in the QRQP scheme, the notified taxpayers will be able to file a quarterly return along with quarterly payment of the tax liability. 
3. The other main topic that was discussed in the 43rd GST Council Meeting was compensation CESS regarding which the GST council decided that the Centre will borrow INR 1.58 Lakh Crores from RBI to meet the shortfall of Compensation CESS.