By CA SABHYAKANT

The 40^th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing today.

The highlights of GST Council Meeting updates are as follows:

Measures for Trade Facilitation and Relief for GST Taxpayers

Reduction in Late Fee for past Returns(From July,2017 to Jan,20):

As a measure to clean up pendency in return filing, in GST Council meeting today it was decided that late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 to be reduced / waived as under: -

1. ‘NIL’ late fee if there is no tax liability;
   1. Maximum late fee capped at Rs. 500/- per return if there is any tax liability.

IMPORTANT NOTE: The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020

• Further relief for Small Taxpayers for late filing of returns

• For February, March & April 2020 Tax periods:

For small taxpayers (aggregate turnover upto Rs. 5 crore), for the supplies made 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 (extended upto 6^th July 2020) is reduced from 18% per annum to 9% per annum till 30.09.2020.

SIMPLIFIED EXPLANATION:

If Turnover is less than Rs. 5 Cr

1. No interest till relief period(i.e 6^th July 2020)
2. 9% interest rate if return filed till 30.09.2020
3. If return filed after 30.09.2020, Interest Rate@18%(Normal Interest Rate)

• For May, June & July 2020 Tax periods:

In wake of COVID-19 pandemic, for taxpayers having aggregate turnover upto 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).

SIMPLIFIED EXPLANATION:

For GSTR3B of May, June and July, 2020, if return filed upto 30.09.2020

1. No Late fees
2. No Interest

• One time extension in period for seeking revocation of cancellation of registration:

As per GST Council Meeting Press Release, 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 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.

SIMPLIFIED EXPLANATION:

For those taxpayers whose GST Registration was cancelled by Department due to any reason till 12.06.2020, they may file an application for reactivation of their GST no. upto 30.09.2020.