40th GST council meeting was held on
Friday, June 12 2020 through video conferencing. This meeting was chaired by
the Union Finance Minister Nirmala Sitharaman which was made important for the announcements
on GST return late fee waiver, interest rate reduced further being extended on
account of Covid-19 crisis.
After the break out of COVID-19 in India
this meeting was the organized. On the further discussion on GST compensation,
inverted tax structure, possibility of rate rationalization was postpone to the
next council meeting.
Following the article covers such
topics:
- 40th GST Council Meet Highlights.
- 40th GST Council Meet News and Updates
- 40th GST Council Meet Expectations.
#What were the highlights of 40th
GST Council Meet ?
Reduction
In/Waiver from the Prior Period Late Fee
Late fee reduction for prior periods of
GST on 1st July 2017 to 31st Jan 2020 are as follows:
- No late
fee for taxpayers with nil tax liability
- Maximum
late fee is Rs 500 per return for the taxpayers who file their returns
between 1st July 2020 and 30th September
#What
were the important decisions taken in the debate?
Let’s see
the some of the important decisions taken in the debate. Following are the
important decisions taken: The first one as we were talking about and much
debated waiver of late fees is being granted there will be no late fees for
such taxpayer who are having nil tax liability and those who are having tax
liability. For them there would be capping of 500 rupees per return and this is
for the period July 17 to January 2020 provided return GSTR 3B is being filed in
a period first July 2020 to 30th September.
Here is the two important point which
you must know in case you are having tax liability of course capping of 500
rupees late fees now per return but no reduction in rate of interest it will
continue to be 18 per annum and second those who have paid the late fees for
this July 17 to January 2020 for any delay. For them no relief whatever they
have paid it is gone it is only for those who have not filed GSTR 3B. This
waiver is coming only for them provided. They file their 3b from 1st July 2020
to 30th September 2020.
Second important decisions for small
taxpayer whose aggregate turnover is up to five crores during Covid-19 time
period which is February March and April. You must be knowing that by way of
notification number 31 32 and 33 for GSTR 3B. If you look at 31 and 32 there's
two category created the first category watch who is having aggregate turnover
from 1.5 crore to 5 crore and the next category was less than 1.5 crore and if
you file your GSTR 3B by staggered date it was given that so those who are
having liability from 1.5 crore to 5 crore for them it was stated if they filed
their GSTR 3B for February and March by 29 June and for April by 30th
June.
There will be nil interest and no late
fee is going to be charged and for category up to 1.5 crore for February they
are supposed to file their GSTR 3B by 30th June for March it would be third July
and for April it was sixth July. Now what is being decided in this GST council
meeting that if you file your GSTR 3B for February March and April by 30th
September meaning thereby you are filing after 6 July 2020. Then the rate of
interest would be reduced from 18 percent to 9 percent per annum. So relief is
being granted to small taxpayer who is having aggregate turnover up to 5 crore
if they are filing Covid-19 tax period GSTR 3B which is for February march and
April beyond 6 July but up to 30th September 2020. Then the rate of interest
now reduced from 18 per annum to nine percent per annum.
Third important decision taken today for
small taxpayer if you are filing your GSTR 3B for may June and July because
February March and April they have already said for the period may June and
July complete no late fees and no interest no late fees and no interest only
for small taxpayer having aggregate turnover up to five crore provided. They
filed their GSTR 3B for May June and July by 30 September 2020. In a staggered
manner that would be notified you need to wait what is the due date for May
June and July but by 30 September 2020.
The fourth important decision is being
taken taxpayer whose registration got cancelled till 12th of June 2020 whose
registration got cancelled till 12th of June which is today 2020 they would be
allowed one time. They can file their revocation application by 30th September
2020. So, this relaxation is being provided whose registration got cancelled
till 12 June 2020. They can file application for revocation of cancellation of
their registration number and last after finance bill 2020 which is now finance
act 2020.
#What are the
changes made in GSTR-3B?
There are certain changes made in GSTR-3B
law pertaining to transitional credit 140 subsection 1 time period that is
being notified with retrospective date first July 2017, but they were other
provision in that finance bill which is now act 2020 which are not notified now
they are saying it is going to be notified and would be effective from 30th
June 2020.
Conclusion
So these are the things taken in the
debate which clarify talks about the tax allegation during COVID-19 period.
If you need any help regarding on GST Registration and GST Return Filing feel free to contact us our Toll Free number 180030702070, Our Business advisor will explain you in details.
