40th GST Council Meeting Highlights

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. Reduction in Late Fee for Past Returns (GSTR-3B)

For such taxpayers who could not file GSTR-3B for the period July 2017 to January 2020. As a trade facilitation measure, the Council has recommended the following:

Note: The reduced amount of late fee would apply to all the GSTR-3B returns furnished between 1^st-July-2020 to 30^th-Sep-2020. After that normal rate of late fee would be applicable.

2. Relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods

For small taxpayers (aggregate turnover up to 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 up to 6th July 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 up to 6th July 2020) and thereafter 9% interest will be charged till 30.09.2020.

3. Relief for small taxpayers for subsequent tax periods (May, June & July 2020)

In wake of COVID-19 pandemic, for taxpayers having aggregate turnover up to 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 1:- 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 2:- Recommendations of GST council would be given effect through relevant Circulars/Notifications which alone shall have the force of law.