Outcome of 40th GST COUNCIL MEETING !!!

The 40 GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister
Smt. Nirmala Sitharaman through Video Conferencing today ( 12/06/2020 ).

The GST Council has made the following Recommendations on Law & Procedures changes :

1). Reduction in LATE FEES for Past Returns :

As a measure to clean up pendency in return filing, Late Fees for Non -Furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced/waived as under :-

(i). ‘NIL’ Late Fees if there is "NO TAX LIABILITY."

(ii). Maximum Late Fees capped at Rs. 500/- per return if there is any "TAX LIABILITY."

Kindly Note that : The reduced rate of Late Fees would apply for all the GSTR-3B Returns furnished between "01.07.2020 to 30.09.2020."

2). FURTHER RELIEF for SMALL TAXPAYERS for LATE FILING of RETURNS for FEBRUARY, MARCH & APRIL 2020 Tax Periods :

For small taxpayers (aggregate turnover uptoRs. 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 upto 6 July 2020) is "Reduced from 18% p.a. to 9% p.a." till 30.09.2020. In other words, for these months, small taxpayers will not be charged any interest till the notified dates for
relief (staggered upto 6 July 2020) and thereafter 9% interest will be charged till 30.09.2020.

3). RELIEF for SMALL TAXPAYERS for SUBSEQUENT TAX PERIODS i.e. MAY, JUNE & JULY 2020 :

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).

4). ONE TIME EXTENSION in PERIOD for seeking "REVOCATION OF CANCELLATION of REGISTRATION" :

To facilitate 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.


NOTE : The Next GST Council Meeting is scheduled to be held in the month of JULY 2020 where discussion regarding GST COMPENSATION CESS will be done.