Recommendations of GST council related to law & procedure

Circular No.ES/259/2019-20                                                          16th March, 2020

To:  Members of the Council

Sub: Recommendations of GST council related to law & procedure

Dear Member,

As you may be aware, the 39th GST Council Meeting was held on 14th March, 2020 under the Chairmanship of Union Finance & Corporate Affairs Minister, Smt Nirmala Sitharaman.

In this regard, we would like to inform you that the Ministry of Finance has issued a Press Release on 14th March, 2020 regarding the following recommendations on Law & Procedures changes.

Relevant extract of the Press Release is given here-below.

  1. Measures for Trade facilitation:


  1. Interest on delayed payments - Interest for delayed GST payment will be charged on the net cash tax liability. Amendment will be from retrospective effect i.e 1st July, 2017.

  2. Amendment to revocation of cancellation - Where registrations have been cancelled till 14th March, 2020, application for revocation of cancellation of registration can be filed till 30th June 2020. The extension is a one-time measurement to facilitate those who want to continue conducting the business.

  3. Extension for filing of GSTR-9 and 9C – Due date for filing GSTR-9 & 9C is extended to 30thJune, 2020 for FY 2018-19. Also, the turnover limit will be increased from Rs 2 crore to Rs 5 crore for mandatory annual return filing. Hence, filing GSTR-9C is optional for the taxpayers having the turnover less than Rs 5 crore.

  4. Know your supplier- A new scheme called ‘Know your Supplier’ has been introduced so that the taxpayers are informed about the basic details of the suppliers with whom they transact or propose to conduct business.

  5. Waiver of due dates- The GSTR-1 for 2019-20 will be waived for certain taxpayers who could not opt for the special composition scheme (notification No. 2/2019-Central Tax (Rate) dated 7th March 2019) by filing Form CMP-02.

  6. Extension of due dates - The due date of Form GSTR-3B for July 2019 to January, 2020 is extended till 24th March 2020 for taxpayers with a principal place of business in the Union Territory of Ladakh. Also, a similar extension is recommended for Form GSTR-1 and Form GSTR-7.

  7. Refund claims – Refund claims will now be processed in bulk for the benefit of the exporters.


  1. Deferment of New GST Return System, E-invoice and QR Code

  1. The dates for Implementation of e-invoicing and the QR code has been deferred to 1st October 2020.

  2. The present return system (GSTR-1, GSTR-2A & GSTR-3B) will be continued till September 2020.


  1. Deferment of e-Wallet scheme

  1. The time limit for finalisation of the e-Wallet scheme for consumers is extended till 31st March 2021.

  1. Extension of the present exemptions from IGST and Cess on the imports made under the AA/EPCG/EOU schemes up to 31st March, 2021.


  1. Other new initiatives:

a.Seeking information return from Banks;

b. To curb fake invoicing and fraudulent passing of ITC, restrictions to be imposed on passing of the ITC in case of new GST registrations, before physical verification of premises and Financial KYC of the registered person.


  1. Issuance of circulars in respect of:

a.Clarification in apportionment of ITC in cases of business reorganization under section 18 (3) of CGST Act read with rule 41(1) of CGST Rules;

b. Clarification on refund related issues; and


  1. Amendments to the CGST Rules:

Key amendments are as below:


  1. Procedure for reversal of input tax credit in respect of capital goods partly used for affecting taxable supplies and partly for exempt supplies under rule 43 (1) (c);

  2. ceiling to be fixed for the value of the export supply for the purpose of calculation of refund on zero rated supplies; 

  1. to allow for refund to be sanctioned in both cash and credit in case of excess payment of tax;

  2. to provide for recovery of refund on export of goods where export proceeds are not realized within the time prescribed under FEMA; and

  3. to operationalize Aadhaar authentication for new taxpayers.

  4. Certain amendments to be carried out in the GST laws.

Members may kindly make a note of the above.

Thanking you,

Yours faithfully,



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