40th GST Council Meeting Highlights – Measures & Relief for Small Taxpayers

40th GST Council Meeting Highlights - banner

Under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman, the 40th GST Council meet was held through video conferencing on 12th of June 2020, i.e, on Friday. Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance& States/UTs marked their presence in the meeting.

Following recommendations were made by the GST Council on Law & Procedures changes.

MEASURES FOR TRADE FACILITATION:

Reduction in Late Fee for Past Returns – 

A late fee for non-furnishing FORM GSTR-3B, as a measure to clear up pendency in return filing, for the tax period from July 2017 to January 2020 has been reduced/waived as under: –

• ‘NIL’ late fee, if there is no tax liability/debt;

• Maximum late fee of Rs. 500/- per return was capped if there is any tax liability.

The lowered rate of a late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020.

Read more about GST registration here.

Relief for Small Taxpayers for Late Filing of Returns for Tax Periods of February, March & April 2020:

For small taxpayers with an aggregate turnover of upto Rs. 5 crores, for the supplies effected in February, March and April 2020, the rate of interest for late furnishing of return for the months mentioned beyond specified dates (wavered to July 6th 2020) is reduced from 18% per annum to 9% per annum till 30th September 2020. In simple terms, for these months, small taxpayers will not be charged any interest till the notified dates for relief, wavered upto 6th July 2020 and thereafter, an interest rate of 9% will be charged till 30th September 2020.

Relief for Small Taxpayers for Subsequent Tax Periods of May, June & July 2020:

In the aftermath of COVID-19 pandemic, for taxpayers having an aggregate turnover of upto Rs. 5 crores; further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in May, June and July 2020 are provided by September 2020.

Read more about GST Returns here.

One Time Extension in Period is Provided for Seeking Revocation of Cancellation of Registration:

An opportunity is being provided to facilitate taxpayers who could not get their cancelled GST registrations restored in time, for filing of an application for revocation of cancellation of registration up to 30th September 2020, in all cases where registrations have been cancelled till 12th of June 2020.

CERTAIN CLAUSES OF THE FINANCE ACT, 2020 AMENDING CGST ACT 2017 AND IGST ACT, 2017 TO BE BROUGHT INTO FORCE FROM 30th June 2020.

Note: These recommendations have been presented in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/Notifications which shall have the force of law.


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