'Key decisions and recommendations made by GST Council'

    12-Jun-2020   
Total Views |
 
 
a_1  H x W: 0 x
 
 
New Delhi: The 40th GST council meeting, first since lockdown, was held on Friday under the chairmanship of Finance Minister Nirmala Sitharaman.
 
The GST Council has made the following recommendations on Law and Procedures changes.
 
Reduction in Late Fee for past Returns
 
New Delhi: The 40th GST council meeting, first since lockdown, was held on Friday under the chairmanship of Finance Minister Nirmala Sitharaman. The GST Council has made the following recommendations on Law and Procedures changes.
 
Reduction in Late Fee for past Returns
 
As a measure to clean up pendency in return filing, a late fee for non-furnishing FORM GSTR-3B for the tax period from July 2017 to January 2020 has been reduced/waived as under: -
 
‘NIL’ late fee if there is no tax liability
 Maximum late fee capped at Rs 500 per return if there is any tax liability
 The reduced rate of a late fee would apply for all the GSTR-3B returns furnished between July 1, 2020, to September 30, 2020.
 
Further relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods
 
For small taxpayers (aggregate turnover up to Rs 5 crore), for the supplies effected in February, March and April 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered up to July 6 2020) is reduced from 18% per annum to 9% per annum till September 30, 2020. In other words, for these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered up to July 6 2020) and after that 9% interest will be charged till September 30, 2020.
 
Relief for small taxpayers for subsequent tax periods (May, June & July 2020)
 
In the wake of COVID-19 pandemic, for taxpayers having aggregate turnover up to Rs 5 crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in May, June and July 2020 is furnished by September 2020 (staggered dates to be notified).
 
One time extension in period for seeking revocation of cancellation of registration
 
To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of an application for revocation of cancellation of booking up to September 30, 2020, in all cases where registrations have been cancelled till June 12, 2020.
 
Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from June 30, 2020.
(Source: PIB)