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Key outcome in 40th Council Met related to law and procedure

Key outcome in 40th Council Met related to law and procedure

The 40th GST Council met was held on 12-06-2020 under the Chairmanship of Union Finance and Corporate Affairs Minister Smt Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and seniors officers of the Ministry of Finance. The Council has made the following recommendations:

  1. Measures for Trade facilitation:

      a. Reduction in Late Fee for past Returns: To clean up pendency in return filing, late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under: -

  1. ‘NIL’late fee if there is no tax liability;
  2. Maximum late fee capped at  500/- per return if there is any tax liability.

The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020.      b. Relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods: Small taxpayers whose aggregate turnover is upto Rs. 5 Crore, will not be charged any interest till 6th July 2020 and thereafter interest will be charged at 9% per annum instead of 18% per annum till 30.09.2020 for the supplies effected in the month of February, March and April, 2020.       c. Relief for small taxpayers for May, June & July 2020 tax periods: Small taxpayers having aggregate turnover upto Rs. 5 Crore are provided a waiver in 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.      d. One time extension in period for seeking revocation of cancellation of registration: Where registrations have been cancelled till 12.06.2020, application for revocation of cancellation of registration can be filled up to 30.09.2020. 2. Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 will be brought into force from 30.06.2020. Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1631127

 

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