40TH GST COUNCIL MEETING UPDATES

The 40^th GST Council meeting was chaired by Finance Minister. The Goods and Services Tax Council on Friday decided to ease compliance burden of businesses by providing relief on late fees and interest payable on late payments.

Following relaxation was recommended in GST Council Meeting for filing of GST Returns:

1)        For all those who have no tax liability but have not filed GST returns for tax period July,2017- January, 2020 (prior to COVID-19),  there will be no late fee at all.

2)        For all those registered persons who have tax liability, but have not filed GST returns, then the maximum late fee for non-filing of GSTR-3B returns for the period July, 2017- January, 2020 has been capped to Rs 500/-

3)        Small taxpayers provided relief by the waiver of late fees and interest if the returns in form GSTR-3B, for the supplies effected in May, June, and July, are furnished by September,2020.

4)        For small taxpayers (aggregate turnover up to Rs 5 crore), the rate of interest for late furnishing of returns beyond specified dates (staggered up to 6^th July, 2020) reduced to 9 percent per annum from 18 percent till 30^th September ,2020.

5)        Taxpayers, who could not get their cancelled GST registrations restored in time, can file an application for revocation of cancellation of registration up to 30^th September, 2020. This applies to all cases where registrations have been cancelled till 12^th June, 2020.