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Decision taken by GST council in its 40th meeting

The GST Council under the chairmanship of Union Finance Minister Mrs Nirmala Sitharaman had met its 40th meeting through video conferencing. In this meeting, GST council has recommended the following relief measures for taxpayers:-

1.  Reduction and waiver in late fees for all past returns (from July 2017 to January 2020): GST council has provided an opportunity to all taxpayers to file all pending GST returns and come out clean and compliant. Under this opportunity, GST council has recommended the following slab of late fees for filing all pending GST returns:

a. Late Fees of Rs Nil: Late fees is completely waived off for those taxpayers who have no tax liability in GST return.

b. Late Fees of Rs 500/-: A maximum limit on late fees has been set at up to Rs 500/- per return for those taxpayers who have any tax liability in their GST return.

Note: The above opportunity for filing all pending GST return with Nil or Rs 500/- late fee per month is applicable only if the taxpayer will file all their pending GST returns during the period from 01.07.2020 to 30.09.2020.

2. Relief in interest on late filing of GST return for the period of February, March and April 2020: Due to COVID-19 pandemic, earlier GST council has extended the due date of filing GSTR-3B return up to 06th July 2020 (staggered date for different taxpayers) for the month of February, March and April 2020 and if the return is filed after this extended due date then interest is charged at the rate of 18% per annum.

Now in order to provide more liquidity in the hands of taxpayers, GST council has provided relief to the small taxpayer having turnover up to Rs 5 crore that interest will be charged at the rate of 9% per annum instead of 18% per annum on late filing of GSTR-3B from above staggered extended due date till 30.09.2020.

3. Waiver of late fees and interest on GST return for the period of May, June and July 2020: Due to COVID-19 pandemic, GST council has decided to provide relief to small taxpayers having turnover up to 5 crore on account of waiver of late fees and interest on GSTR-3B for the month of May, June and July 2020, if filed by September 2020. (staggered date will be notified shortly)

4. One time extension for revocation of cancellation of registration: GST Council has given an opportunity to facilitate taxpayers to file an application for revocation of cancellation of registration till 30.09.2020 for all the taxpayer whose registration had been cancelled till 12.06.2020.

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