Outcome of 40th GST Council Meeting – 12th June 2020

Finance Minister Nirmala Sitharaman through 40th GST Council Meeting (1st meeting after the Lockdown) has announced various measures to ease compliance burden on businesses. Some of the relief measures announced are as follows:-

  1. (1)Reliefs in respect of Late Fee
  1. (A) Returns for tax periods July, 2017 to January, 2020
  • – No Late Fee on GST Returns having Nil Tax Liability
  • – Late Fee capped at Rs. 500/- per return under CGST and Rs. 500/- per return under SGST/UTGST for Returns having Tax Liability

Returns must have been furnished between 1st July, 2020 to 30th September, 2020

  • (B) Returns for tax period May, June & July 2020
  • – No Late Fee if Returns are filed by 30th September, 2020
  1. (2)Reliefs in respect of Interest Liability (for businesses having Turnover up to Rs. 5 Crore)
  • (A) Returns for tax period February, March & April 2020
  • – No Interest Liability if Returns are filed by extended due dates up to 6th July 2020
  • – Interest Rate capped @9% if Returns are filed after 6th July but before/up to 30th September 2020
  • (B) Returns for tax period May, June & July 2020
  • – No Interest Liability if Returns are filed by 30th September

(3)Revocation of Cancellation of Registration

To facilitate businesses who could not get their cancelled GST Registration restored back, Council has provided one-time opportunity to all Registrations cancelled up to 12th June 2020, to file their Revocation up to 30th September, 2020.

(4)Rationalisation of GST Rates

Discussion regarding Rationalisation of GST Rates for Textile, Footwear and Fertilizer (facing inverted duty structure) has been deferred for next meeting.

Thank You..

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