Lets go through the insights of 40th GST Council Meeting where the late fees are waived for non-filing GST returns.
The Finance Minister Nirmala Sitharaman, on Friday, 12-June-2020 has announced that there will be ‘no late fees’ will be levied on taxpayers filing returns for the period between July 2017 to January 2020, with no tax liabilities.
The council decision on the removal of late fees for past returns is a big relief for those who are already facing a severe cash crunch and this decision will be widely welcomed by small businesses.
Reduction in Late Fee for Past 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: –
- ‘NIL’ late fee – If there is no tax liability;
- Maximum late fee capped at Rs. 500/- (CGST+SGST) per return if there is any tax liability.
The reduced rate of the late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020
Further relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods:
For small taxpayers (aggregate turnover upto Rs. 5 Crores), for the supplies effected in February, March and April 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18% per annum to 9% per annum till In other words, for these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered upto 6th July 2020) and thereafter interest will be charged till 30.09.2020.
Relief for small taxpayers for subsequent tax periods (May, June & July 2020):
In wake Of COVID-19 pandemic, for taxpayers having aggregate turnover upto Rs. 5 crore, further relief provided by waiver Of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in May, June and July 2020 are furnished by September 2020 (staggered dates to be notified).
One time extension in period for seeking revocation Of cancellation Of registration:
To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of the application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.