GST Late fees Waiver & Key Highlights of 40th GST Council Meeting on 12 June 2020

Finance Minister Nirmala Sitharaman today chaired the 40th GST Council meeting via video conferencing. This was the first meeting of the GST Council during the lockdown, where several measures to garner funds for compensation to states were discussed. Members of the GST Council interacted over videoconferencing in their first meeting since the coronavirus lockdown. For the period from July 2017 to January 2020, which is prior to the COVID period, many return filings were pending. For those with no tax liabilities who had not filed returns between July 2017 and January 2020, there will be zero late fees. For taxpayers with tax liabilities, the maximum late fee for non-filing of GSTR-3B returns for this period has been capped at ₹500. This relief applies to all returns submitted between July 1, 2020, and September 30, 2020, as clarified in the recent update on Know GST NIL or Rs 500 late fees applicable for which Taxpayer?.

The GST Council took these decisions to clean up return filing pendencies. Further relief has been offered to small taxpayers for late filing of returns for February, March, and April 2020. For small taxpayers with an aggregate turnover of up to ₹5 crore, the interest rate for late furnishing of GST returns for these months, beyond July 6, 2020, has been reduced from 18% to 9%. No interest will be charged for returns filed up to July 6, 2020, and the reduced 9% rate will apply till September 30, 2020. Additionally, small taxpayers with turnover up to ₹5 crore will receive a waiver of late fees and interest if they file GSTR-3B for May, June, and July 2020 by September 2020.

Taxpayers whose GST registrations were cancelled are being given an opportunity to apply for revocation of cancellation up to September 30, 2020, in all cases where cancellation occurred till June 12, 2020. The Council also decided to hold a special one-agenda meeting in July 2020 to discuss the compensation cess to be paid to states and how to handle related borrowings, if required. Additionally, the issue of inverted duty structure was discussed, as it leads to revenue generation problems and unanticipated refunds. The Council reached a consensus that inversion correction is necessary, with discussions focusing on the appropriate timeline for implementation.

Why Professional Utilities?

At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.

One Stop Corporate Solution

PAN India
Services

Free Expert
Assistance

Google Verified
Business

Dedicated Support
Staff

Money-Back
Guarantee