The issue of compensation remained in deadlock in 42nd GST Council meeting. However, it decided to extend the compensation cess beyond 2022. The Council will meet again on 12October 2020. The Union Finance Minister told reporters that Centre will immediately disburse Rs 20,000 crore collected in the cess fund in the current financial year to states. On asked about some states having view that compensation cess is a matter of law, she said that no one is going to be denied compensation. It was decided in GST Council meeting that from January 1, 2021, taxpayers below Rs.5crore turnover will not be required to file returns monthly but will be filing return quarterly. However, the payment of taxes will be monthly. From April 1,2021, taxpayers having more than Rs.5Crore turnover will be required to compulsorily mention HSN codes up to six digits. Those having less than Rs.5Crore will mention HSN Code up to four digits. Moreover, refunds will be disbursed only to those whose bank accounts are linked with PAN and AADHAAR.
