Relief on late fee for GST return filing: 40th GST Council Meeting

NEW DELHI : Amid a massive impact on tax revenues due to the coronavirus-induced lockdown which began in March end, 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 in which the impact of Covid-19 on revenue collection was also discussed.

GST Council Meeting Updates:

- Kapil Rana, Chairman and Founder, HostBooks Limited, said these measures will help in two different ways. It will the push for return documenting, henceforth will quicken GST income assortment. It will likewise help in tidying up undesirable rebelliousness related lawful and procedural issues profiting both citizen and the GST office, he said. 

- ClearTax originator and CEO Archit Gupta said the expulsion recently charges for past returns is a major alleviation for the individuals who are now confronting serious money crunch and this choice will be generally invited by private ventures. "As the covid situation stays tricky, organizations need to intently survey their capacities and spotlight on embracing business progression apparatuses and innovation. Thusly they can utilize this chance to get ready for more torment, some of which may even now come," he said. 

- There has been an unanimity that reversal causes income age issues and startling discounts, the inquiry was the point at which this is to be remedied: FM 

- While the guideline with respect to remedy of reversal of obligations has been settled upon by everyone, the topic of the ideal chance to make the amendment remained, consequently this choice has been delayed: FM

-The issue of inverted duty structure hitting GST collections was discussed. The GST Council also discussed inverted duty structure in textile: FM

-FM says discussion on taxing pan masala will hopefully be taken up at GST Council's next regular meeting.

-On the issue of compensation requirements of states, Sitharaman said a special one-agenda meeting will happen in July to discuss compensation.

-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, no late fee or interest: Sitharaman

-Small tax payers will have to pay no interest for late furnishing of GST returns till July 6, 2020; after that, the interest rate has been reduced to 9%, this will be valid till September 30, 2020: FM

-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%: FM

-The two decisions regarding late fee for non-filing of GST returns have been taken by GST Council in order to clean up pendencies: FM

-For those with tax liability, maximum late fee for non-filing of GSTR-3B returns for July 2017 - Jan 2020 has been capped to ₹500. This will apply to all returns submitted during Jul 1, 2020 - Sep 30, 2020: FM

-For the period from July 2017 to Jan 2020, which is prior to COVID period, a lot of return filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017-Jan 2020 there will be zero late fees: FM Nirmala Sitharaman

-FM press briefing begins.

-GST Council meeting is underway.

-The government has already waived late fee for filing GSTR-3B returns from February 2020 to May 2020.

-Late fees for non-filing of GST returns for the period in between August 2017 to January 2020 could be waived off.

-Under GST law, state governments are guaranteed to be paid for any loss of revenue in the first five years of the GST implementation from July 1, 2017.

-GST Council is expected to consider revising late filing fee for returns from July 2017 to January 2020. Some other compliance-related relief measures are also expected to be taken up in the meeting.

-FM is scheduled to brief the media shortly.