The Goods and Services Tax (GST) Council on Friday held under the chairmanship of FM Nirmala Sitharaman. In their first meeting since a nationwide lockdown was implemented to prevent the spread of corona-virus, the members of the GST Council discussed issues through video conferencing.
Here are the key highlights of today’s press conference after the GST council meeting:
- For all those who have no tax liability but have not filed GST returns for tax period July 2017 – Jan 2020 (prior to COVID-19 period), there shall be no late fee at all.
- For people who have tax liabiity, 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.
- Further relief is being offered to small tax payers for late filing of returns for February, March and April 2020 (the COVID-19 period)
- 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 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.
- 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.
- 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.
- A special one-agenda GST Council meeting will be held in July 2020 to discuss compensation cess, which has to be given to states, and who should pay for the borrowing, if required.