GST Council held its 40th meeting on 12th June, 2020 through video conferencing. In the meeting, GST Council has broadly taken the following decisions –
Recommendation on law and procedural related changes
1. Late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under: –
a. ‘NIL’ late fee if there is no tax liability;
b. Maximum late fee capped at Rs. 500/- per return if there is any tax liability
The reduced rate of late fee would apply for all the Form GSTR-3B returns furnished between 1st July, 2020 to 30th September, 2020
2. For small taxpayers having aggregate turnover up to Rs. 5 crore, for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered up to 6th July, 2020) is reduced from 18% per annum to 9% per annum till 30th day of September, 2020. In other words, for these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered up to 6th July, 2020) and thereafter 9% interest will be charged till 30th day of September, 2020.
3. For taxpayers having aggregate turnover up to Rs. 5 crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).
4. Taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30th September, 2020, in all cases where registrations have been cancelled till 12th June, 2020.
5. Certain clauses of the Finance Act, 2020 amending CGST Act, 2017 and IGST Act, 2017 to be brought into force from 30th September, 2020.
Source: Press Information Bureau (PIB)
