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Concession of late fee or interest One time extension in period for seeking revocation of cancellation of registration |
Goods and services Tax 40th council meeting held today under the chairmanship of Finance Minister Nirmala Sitharaman. This is the first meeting on goods and services tax held in post lockdown.
The Goods and services Tax 40th council meeting held today was to provide further ease compliance burden on taxpayers. There are certain relief measures taken by the finance minister given in the short bullet points:
Concession of late fee or interest
| Particulars | Return period | Condition | Late fee | Interest |
| Nil taxpayers | July 2017-Jan 2020 | Not filled return of July 2017-Jan 2020 i.e. prior covid-19 period | Nil | – |
| Having tax liability | July 2017-Jan 2020 | Not filled return of July 2017-Jan 2020 i.e. prior covid-19 period | Maximum 500 | – |
| Having aggregate turnover up to 5 crore | Feb, Mar and April 2020 | Up to July 6, 2020 | – | Nil |
| Beyond July 6, 2020 | – | 9%* | ||
| Having aggregate turnover up to 5 crore | May, June and July 2020 | Furnished by September 2020 | Nil | Nil |
- For all those who have no tax liability but have not filed GST returns for tax period July 2017 – Jan 2020 (prior to #COVID19 period), there shall be no late fee at all
- For people who have tax liability, maximum late fee for non-filing of GSTR-3B returns for period Jul 2017 – Jan 2020 has been capped to ₹ 500
- This will apply to all returns submitted during Jul 1, 2020 – Sep 30, 2020
- For small tax payers whose aggregate turnover is up to ₹ 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18% to 9%
- Small tax payers whose aggregate turnover is up to ₹ 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June and July 2020, by September 2020
One time extension in period for seeking revocation of cancellation of registration
Tax payers who could not get cancelled GST registrations restored in time are being given an opportunity to apply for revocation of cancellation of registration up to September 30, 2020. In all cases where registration has been cancelled till June 12, 2020
Further discussion on July GST council meeting:
Collection of GST
Finance minister Nirmala Sitharaman further said that GST collections had fallen about to 45%, aggravating the problem of compensation to states, even as states demanded they be funded through market borrowing. The Council will meet again in July to discuss specifically this issue.
Compensation cess
Finance minister said that the GST Council when met again in July will discuss exclusively about compensation cess which has to be given to the states. Shortfall of fund will remains an issue even with the Centre having released Rs 36,400 crore to states as compensation cess for December to February period, while states asked the GST Council to raise the money through market borrowings. And if we take borrowing then how we will pay it…it is has to be discuss in next meeting. Said Sitharaman
Rate rationalisation
The Council however postponed rationalisation of GST rates for textiles, footwear and fertiliser; even though principally all members agreed that the duty rates need to be corrected as these products faced inverted duty structures. This will discuss in next GST Council meeting,” Sitharaman said.
Certain clauses of finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30.06.2020
