The 40th GST Council was help under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing Today i.e. 12th June, 2020.
The GST Council has made the following recommendations on Law & Procedures changes:
1. Reduction in Late Fee for past Returns:
To bring in line pending return filing, late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under:
i. If there is no Liability : NIL
ii. If there is any Tax Liability : Maximum Rs. 500/- per return.
(Note: The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01/07/2020 to 30/09/2020.)
2. Further relief for small taxpayers for late filing of returns (February, March & April 2020):
For small taxpayers (Aggregate Turnover upto Rs. 5 Crore), for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18% p.a. to 9% p.a. till 30.09.2020 i.e. For these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered upto 6th July 2020) and thereafter 9% interest will be charged till 30.09.2020.
3. Relief for small taxpayers for subsequent tax periods (May, June & July 2020):
In wake of COVID-19 pandemic, for taxpayers having aggregate turnover upto 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 the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).
4. 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 application for revocation of cancellation of registration up to 30/09/2020, in all cases where registrations have been cancelled till 12/06/2020.
Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/Notifications which alone shall have the force of law.
To read the Press Release : CLICK HERE