Recommendations made by GST Council in its 40th Meeting held on 12.06.2020

Recently GST Council has recommended few reliefs for small tax payers, waived/ reduced the penalty for non-filers of GSTR-3B, extend the benefit to apply revocation of cancellation of registration and also recommended to bring into effect certain proposed amendments of CGST & IGST Act w.e.f. 30.06.2020. We shall further update you once these changes will be notified by the Government.

Reduction / waiver of late fee for filing GSTR-3B returns for the period July 2017 to January 2020

Where the GSTR-3B returns for the period July 2017 to January 2020 are filed during the period 01.07.2020 to 30.09.2020, the late fee on such returns is waived/ capped as under:

- Nil late fee payable – if there is no tax liability
- Maximum late fee capped at Rs. 500 per return – if there is any tax lability

Reduced Interest liability for small taxpayers (having aggregate turnover uptoRs. 5 crore) for late filing of returns for February, March & April 2020

- Presently, no interest is payable for filing of GSTR-3B for the months of February, March & April 2020 by small taxpayers if they will file it till the notified dates for these months (staggered upto 06.07.2020).
- Post the notified dates, interest would be charged @ 9% (reduced from 18%) upto 30.09.2020.

Waiver of interest and late fee for late filing of GSTR-3B by small taxpayers for the months of May, June & July 2020

Interest & late fee has been waived on late filing of GSTR-3B by small taxpayers (having aggregate turnover upto Rs. 5 crore) for the months of May, June & July 2020 where the returns are filed by September 2020 (staggered due dates to be notified).

One time extension in period for seeking revocation of cancellation of registration

A one time opportunity has been provided to all taxpayers where registrations have been cancelled till 12.06.2020 for filing of application for revocation of cancellation of registration till 30.09.2020.

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

For any further clarification and specific query, please feel free to contact us.

Puneet Agrawal, Partner

+91-9891898911,puneet@alalegal.in