Recommendations of 40th GST Council Related to Law &Procedure || 40th GST Council Meeting Highlights

Recommendations of 40th GST council met related to Law & Procedure

The 40th GST (Goods and Service Tax) Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman through video conferencing here today. The 40th GST meeting was also attended by Shri Anurag Thakur (Union Minister of State for Finance & Corporate Affairs) besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance & States/ UTs Union Territories.

The GST (Goods and Service Tax) Council has made the following recommendations on Law & Procedures changes.

1. Measures for Trade facilitation: Reduction in Late Fee for past GST Returns:

As a measure to clean up pendency in GST return filing, late fee for non-furnishing FORM GSTR3B GST Return 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; Maximum late fee capped at 500/- Rupees per return if there is any tax liability.

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

Further relief for small taxpayers for late filing of returns for Febr, March & April-2020 Tax periods:

For small taxpayers (aggregate turnover up to Rs. 5 crore), for the supplies effected in the month of Feb, 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 on GST till the notified dates for relief (staggered up to 6th July 2020) and thereafter 9% interest will be charged till 30.09.2020..

Relief for small taxpayers for subsequent tax periods (May-2020, June-2020 & July 2020):

In wake of COVID-19 pandemic, for GST taxpayers having aggregate turnover upto. 5 crore Rupees further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B GST Return for the supplies effected in the months of May-2020, June-2020 and July-2020 are furnished by September, 2020 (staggered dates to be notified).

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

To facilitate GST 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 GST registration up to 30.09.2020, in all cases where registrations have been cancelled till 12^th June.2020.

2. Certain clauses of the Finance Act, 2020 amending Central Goods and Service Tax Act 2017 and IGST Act, 2017 to be brought into force from 30.06.2020.

Note: The recommendations of 40th the GST Council met have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant GST Circulars/Notifications which alone shall have the force of law

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