Update on 40th GST Council Meeting and booklet capturing legislative changes and relaxations made due to COVID-19
The 40th GST Council Meeting held on June 12, 2020 was Council’s first meeting post lockdown. The industry was expecting major reliefs in these challenging times like rationalization of GST rates, further extension in due dates for payment of taxes, relaxation in rate of interest etc. However, it seems that the Council expects the industry to become ‘Aatma Nirbhar’ and has not provided any relief to taxpayers except for minor relaxations for small taxpayers (having aggregate turnover up to Rs.5 Crores).
The important decisions taken by the Council, are as under:
- Reduction / waiver of late fee for all taxpayers
Late fee will be reduced / waived off for taxpayers who did not furnish Form GSTR-3B for the period July 2017 to January 2020. This relaxation is subject to the condition that taxpayers furnish this return between July 2020 to September 2020. The taxpayers need to pay following late fee:
- Taxpayers having no tax liability : Nil
- Taxpayers having tax liability : Maximum late fee of Rs. 500 per return
The Council has proposed that certain clauses of the Finance Act, 2020 that amended the Central Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017 will come into effect from June 30, 2020. The Council did not list such clauses in its Press Release. We will update you regarding these changes once the relevant Notifications are issued.
We are also attaching a booklet capturing all legislative changes and relaxations relating to GST, Customs and Foreign Trade Policy due to COVID-19 for your quick reference.