In 40th GST Council Meeting, the main focus of Hon’ble Finance Minister Smt. Nirmala Sitharaman was on this statement : “For the period from July 2017 to Jan 2020, which is prior to COVID-19 period, a lot of return filing has been pending.”
In view of the above statement, the decisions taken by the Council Meeting are as under :
(1.) For all those who have no tax liabilities but who have not filed their returns between July 2017 to Jan 2020 ; there will be zero (NO) late fees.
(2.) For people who have tax liability, maximum late fee for non-filing of GSTR-3B returns for the period July 2017 to January 2020 has been capped to Rs 500. This will apply to all returns submitted during 1st July, 2020 to 30th September, 2020.
(3.) For small tax payers whose aggregate turnover is up to Rs. 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020 : The rate of interest is being reduced from 18% to 9% per annum and that is only till 30th September, 2020.
(4.) Small tax payers whose aggregate turnover is up to Rs 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June and July 2020, by September 2020 (Staggered dates to be notified).
(5.) In July, which is on the request of all the ministers, there shall be a meeting to discuss exclusively one agenda point – compensation cess. The compensation which has to be given to the states & if at all it results in some kinds of borrowing, how & who is going to pay for it.
(6.) Before the introduction of formula-based sharing of IGST between centre and states, there was a huge accumulation of IGST from 2017-18, which led to an ad hoc decision of sharing accumulated IGST in two halves. This anomaly had to be corrected.
Understanding the need for states to have money in their hands, we corrected one end of anomaly, wherein Centre could release money to states without states having to do any adjustment. As a result, I cleared bills for compensation between Dec, Jan & Feb which were lying pending : Hon’ble FM