GST Council, in its 40th Meeting held on 12/06/2020 has recommended to reduce/ waive the interest/ late fee for delayed filing of GSTR 3B by small taxpayers (having turnover upto Rs. 5 crores) for the tax period from July 2017 to July 2020, as under:
1. Reduction in Late Fee for Past Returns (July 2017 to January 2020)
As a measure for trade facilitation and to clean-up the pendency in filing of GSTR 3B for the period from July 2017 to January 2020, the GST Council has recommended to reduce/ waive the late fee for past returns, 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 GSTR-3B returns furnished between 01/07/2020 to 30/09/2020.
2. Relief for filing of returns for February to April 2020
Further GST Council has recommended to provide relief for small taxpayers (having turnover upto Rs. 5 Crores) by way of reduced interest of 9% in lieu of 18% upto 30/09/2020, for late filing of returns for the tax periods February, March and April 2020. This interest shall be charged beyond specified last date (staggered upto 06/07/2020) for filing of GSTR 3B return for the said tax periods.
3. Relief for filing of returns for May to July 2020
Also, GST Council has recommended to provide relief for small taxpayers (having turnover upto Rs. 5 Crores) by way of waiver of interest and late fee upto 30/09/2020, for late filing of of GSTR 3B return for the tax periods May, June and July 2020.
GST Council Press Release dt. 12/06/2020: Relief for GSTR 3B delays
Recommendations of GST council related to Law & Procedure
The 40th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing here today. The meeting was also attended by 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. The GST Council has made the following recommendations on Law & Procedures changes.
1. Measures for Trade facilitation:
a) Reduction in Late Fee for past Returns:
As a measure to clean up pendency in return filing, late fee 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 fee if there is no tax liability;
ii) 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 GSTR-3B returns furnished between 01/07/2020 to 30/09/2020
b) 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 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 06/07/2020) is reduced from 18% per annum to 9% per annum 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 06/07/2020) and thereafter 9% interest will be charged till 30/09/2020.
c) Relief for small taxpayers for subsequent tax periods (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).
d) 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.
2. Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30/06/2020.
Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/ Notifications which alone shall have the force of law.