New Delhi

Summary of Points Finalized in the Meeting

1. Infosys Update and GST Portal Issues

Infosys Chairman Nandan Nilekani presented an update on GST portal performance and proposed an incremental improvement model instead of launching a new return system abruptly. Key steps included:

Staggered filing to reduce server load.

Incremental linking of GSTR-1 with GSTR-3B and automation of ITC computation.

Introduction of SMS-based filing for nil returns.

A plan to increase system capacity to 3 lakh concurrent users.
The Council decided that Shri Nandan Nilekani would attend the next three meetings to update on implementation progress. 39th GSTC Minutes, page 18

2. Review of Revenue Position

The Council reviewed declining GST revenues and compensation delays.

Compensation cess collected till January 2020: ₹79,200 crore.

Compensation released: ₹1,20,498 crore (₹41,000 crore excess released).

States expressed concern about pending compensation (₹48,000 crore due for Oct–Jan 2020).

States such as Punjab, Kerala, and Tamil Nadu urged the Centre to ensure 14% annual growth commitment and explore market borrowing to meet shortfall.

Decision: The issue of pending IGST settlement and compensation funding was referred to the Group of Ministers (GoM) for early resolution. 39th GSTC Minutes, page 24

3. Fitment Committee Recommendations

The Council discussed correction of inverted duty structures and rate rationalization:

Deferred decision on major sectoral rate changes due to COVID-19 uncertainty.

Directed the Fitment Committee to re-examine recommendations and propose a consolidated list for the next meeting. 39th GSTC Minutes, page 45

4. Law Committee Recommendations

Several legal and procedural changes were approved:

Interest under Section 50 of CGST Act — to be levied only on net cash liability prospectively.

Aadhaar Authentication — approved for GST registration and refunds.

Waiver of GSTR-1 filing for taxpayers under special composition scheme.

Extension for filing GSTR-9 and GSTR-9C (FY 2018–19) till 30th June 2020.

Know Your Supplier Scheme — approved for rollout to improve transparency.

QR Code and e-invoicing implementation — deferred till 1st October 2020. 39th GSTC Minutes, page 65

5. IT & System Changes

The Council endorsed the following IT measures:

Adoption of the Time & Material Model for implementing pending Change Requests (CRs) to expedite fixes.

Infosys to deploy 60 dedicated professionals to handle GSTN system changes.

IT-GoM empowered to take decisions on prioritizing GST system improvements. 39th GSTC Minutes, page 17

6. Extension of GSTR-3B and GSTR-1 Filing System

The Council decided to continue the existing system of GSTR-1 and GSTR-3B filing till September 2020, deferring the rollout of the new return format. 39th GSTC Minutes, page 3

7. Creation of GST Appellate Tribunal (GSTAT) Benches

Approved the creation of State and Area Benches of the GSTAT for the State of Uttar Pradesh. 39th GSTC Minutes, page 3

8. National Anti-Profiteering Authority (NAA)

The Council took note of the NAA’s quarterly report (Oct–Dec 2019) and directed continued monitoring of anti-profiteering provisions. 39th GSTC Minutes, page 3

9. Consumer Incentive Scheme

Proposal for a B2C invoice compliance incentive scheme was discussed. The Council agreed in principle and directed the Law Committee to frame a detailed operational model for approval. 39th GSTC Minutes, page 3

10. Next Meeting

It was decided that the 40th GST Council Meeting would focus on compensation strategy, IGST settlement, and technology updates. 39th GSTC Minutes, page 4