Insights

Finance Minister Nirmala Sitharaman chaired the 40th GST Council meeting on 12th June, 2020. This was the first meeting of the GST Council during the lockdown in which several measures to garner funds for compensation to states are likely to have been discussed.

 

The recommendations made by the Council are summarized below:

  1. Reduction in late fees for delayed furnishing of GSTR-3B for the tax period July 2017 to January 2020

 

Class of registered persons

 

Existing Late Fees

 

Revised Late Fees

 

Condition

Taxpayer with ‘NIL’ GST

Liabilty

Rs. 20 per day OR Maximum = Rs. 10,000/-

 

NIL

 

GST-3B to be furnished between 1st July, 2020 to 30th September, 2020

Taxpayer   with                   GST Liabilty

Rs. 50 per day OR Maximum = Rs. 10,000/-

 

Rs. 500/- per return

 

 

NOTE:-

There is no relief for the interest on delayed payment of GST

If the delayed returns for the period July 2017 to January 2020 are furnished before 1st July, 2020, then it would be interesting to see whether late fees already paid, if any are returned back.

  1. Relief for delayed furnishing of GSTR-3B in the COVID period for taxpayers whose aggregate turnover is upto Rs. 5 Crs.

 

 

Period

Relief for GSTR-3B filed within notified staggered dates (upto 6th July 2020)

Extra Relief for GSTR-3B filed beyond notified staggered dates

 

Condition for extra relief

February 2020

March 2020

April 2020

Late Fees

Waived off

Late Fees

As applicable

 

GSTR-3B to be furnished upto 30.09.2020

Interest

Waived off

Interest

9% (reduced

from 18%)

May 2020

June 2020

July 2020

 

Late Fees

Waived off

GSTR-3B to be furnished by September 2020 (staggered dates to be notified)

Interest

Waived off

 

  1. One-time extension in period for seeking revocation of cancellation of registration

Taxpayers whose registrations have been cancelled till 12.06.2020 and who could not get their cancelled GST registrations restored in time have been given one-time extension to file the application for revocation of cancelled registration up to 30.09.2020.

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