The 40th GST Council Meeting, chaired by Finance Minister Nirmala Sitharaman, was held on June 12. The Centre has announced a rate cut for small taxpayers, adding that no late fees would be charged in case of late filing of returns for the period between July 2017 to January 2020 by those without tax liabilities.
Finance Minister Nirmala Sitharaman on June 12 addressed the media after chairing the 40th Goods & Services Tax (GST) Council Meeting.
Here are the key highlights from the Finance Minister’s briefing:
Reduction in late fee for past returns: As a measure to clean up pendency in return filing, the late fee for non-furnishing form GSTR-3B for the tax period July 2017 to January 2020 has been reduced/waived
No late fees will be levied on registered entities with nil GST return filing between July 2017 and January 2020.
For people who have a tax liability, the maximum late fee for non-filing of GSTR-3B returns for period July 2017 to January has been capped at Rs 500. The reduced rate of late fee would apply for all the GSTR-3B returns furnished between July 1 and September 30.
Further relief for small taxpayers for March and April tax periods: For small taxpayers (aggregate turnover up to Rs 5 crore), the rate of interest for late furnishing of returns beyond specified dates (staggered up to July 6) reduced to 9 percent per annum from 18 percent till September 30.
For subsequent tax periods (May, June and July): Small taxpayers provided relief by waiver of late fees and interest if the returns in form GSTR-3B, for the supplies effected in May, June and July, are furnished by September.
One-time extension for seeking revocation of cancellation of registration: Taxpayers, who could not get their cancelled GST registrations restored in time, can file an application for revocation of cancellation of registration up to September 30. This applies to all cases where registrations have been cancelled till June 12.
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