Key Pointers of 40th GST council meeting

The 40th GST Council meeting held today i.e. on 12th June 2020 via video conferencing. 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 at 40th GST Council Meet:

1. Reduction in Late Fee for past GST Returns:

  • As a measure to clean up pendency in return filing, the 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 a late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020

2. Further 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 crores), 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.

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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 crores, 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 canceled GST registrations restored in time, an opportunity is being provided for filing of an application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been canceled till 12.06.2020.

5. Introduction of the formula-based sharing of IGST

Before the introduction of the formula-based sharing of IGST between center and states, there was a huge accumulation of IGST from 2017-18, which led to an ad hoc decision of sharing accumulated IGST in two halves. This anomaly had to be corrected.

Understanding the need for states to have money in their hands, we corrected one end of the anomaly, wherein the Centre could release money and give to states without states having to do any adjustments.

This will enable to clear the GST compensation bills of December, January, and February, which has been lying pending; states have appreciated the decision to sort this matter out, says FM

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Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30.06.2020.

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Author: admin

BharaTax is an online Blog portal for reporting all the latest articles, judgments, Circulars, orders, and notifications relating to Taxation Laws in India.

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