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New Delhi, June 12, 2020
The Goods and Service Tax (GST) Council today reduced the late fee for non-furnishing of Form GSTR-3B for the tax period from July 2017 to January 2020 as a measure to clean up pendency in return filing.
At its 40th meeting, under the chairmanship of Union Finance Minister Nirmala Sitharaman, the Council decided that there would be "nil" late fee if there is no tax liability.
The maximum late fee has been capped at Rs 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, a press release from the Ministry of Finance said.
For small taxpayers (aggregate turnover up to Rs. 5 crore), for the supplies effected in the months of 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 30.09.2020.
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 9% interest will be charged till 30.09.2020..
In wake of the COVID-19 pandemic, for taxpayers having aggregate turnover upto Rs. 5 crore, further relief has been provided by waiver of 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 (staggered dates to be notified), it said.
To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.
Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 will be brought into force from 30.06.2020, the release added.
The meeting was also attended by Union Minister of State for Finance Anurag Thakur besides Finance Ministers of States and Union Territories (UTs) and senior officers of the Ministry of Finance and the States/ UTs.