Great Relief !! Waiver of late fees of Nil GSTR 3B and maximum cap of Rs. 500 in other cases and more benefits | Highlights 40th GST council meeting

written by GST expert | June 12, 2020

During this time of pandemic government was taking various steps to provide some relief to the common, many of which did not work. However the steps taken by 40th GST council meeting are a welcome step during such times which are as under:

With regard to GSTR 3B for the tax period of July, 2017 to January, 2020 late fee would be:

1. “Nil” if no tax liability in GSTR 3B

2. Maximum capped at Rs. 500 per return if there is any tax liability.

Reduced late fee would only be available if the above returns are filed between 01.07.2020 to 30.09.2020. Also since the due date of GSTR 3B for the month of February, March, April and May have been already extended this is a welcoming step.

Now even though this is a welcoming step of providing relief to tax payers and comply with previous non-compliance however on the other hand it will also demotivate people who have already file their return with late fees as they didn’t get any relief and they would be encouraged to not file return and wait for relief in future.

Reduction of interest on late payment:

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 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 upto 6th July 2020) and thereafter 9% interest will be charged till 30.09.2020.

Waiver of late fees for small taxpayers i.e. extension of due date for GSTR 3B for May, June and July:

Small tax payers having turnover upto Rs. 5 crore can file their GSTR 3B for supplies made in the month of May, June and July 2020 upto September 2020 (Specific dates to be notified).

Note: However it is important to note that this waiver is only of late fees thus if you are the one who pays GST in cash you must file GSTR 3B in time or else interest @18% would be charged on late payment.

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 registrationup to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.

To read full Press release CLICK HERE.

 

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