Finance Minister Nirmala Sitharaman presided over the 40th GST Council meeting on June 12, 2020. The Goods and Services Tax Board decided to compensate for the interest that was late and free of interest so that it could ease the compliance burden of businesses. And another special meeting will be held in July to discuss the GST compensation for states, and find ways to fund it.
Highlights of the meeting
The following recommendations were made at the 40th meeting of the GST Council on Law and Procedure.
- There will be a reduction in late fees for past returns
GSTR-3B non-payment fee has been reduced/deferred in the assessment time frame from July 2017 to January 2020, to neatly record the pendency: –
- If there is no tax liability the ‘NIL’ will be charged late
- If there is no tax liability, the maximum late fee for each arrival is Rs
The reduced rate applies to all GSTR-3B returns, which are set between July 01, 2020, and September 30, 2020.
- The one-time extension is requesting revocation of registration
Taxpayers who are unable to reinstate the canceled GST registration on time and have the opportunity to fill out an application to cancel the registration cancellation extended until September 30, 2020.
The CGST Act 2017 and the IGST Act 2017 amend the Finance Act 2020 with certain conditions to be effective from 30 June 2020.
- Most relief for small taxpayers to file late tax periods for February, March and April 2020
The total taxpayer is around Rs 5 crore and who supplies in February, March and April 2020, the interest rate for this month’s earnings beyond the due dates (frozen until July 6, 2020) is 18% per annum from September 30 to 2020 Reduced to%. In other words, in these months, small taxpayers will not be charged until the notification dates for compensation (frozen until July 6, 2020) and thereafter. As of September 30, 2020, 9% interest is charged
- Small Taxpayers Compensation for Post-Tax Periods (May, June and July 2020)
Taxpayers with a total turnover of Rs. 5 crores, late fees, and waiver of interest will be compensated if the income in Form GSTR 3B is provided by September 2020 for supplies affected in May, June and July 2020. (Stunned dates to be announced)