Key Recommendations of 40th GST Council Meeting

Key Recommendations of 40^th GST Council Meeting

With the main focus on easing compliance for the small taxpayer, GST council had made following recommendations in its 40^th GST council meeting held on 12.06.2020:

Late Fee exemptions for Past Returns

Late fee for tax period Jul-17 to Jan-20, if filed between 01.07.2020 to 30.09.2020, will be:

• NIL, if there is no tax liability in any tax period;
• Otherwise maximum late fees capped to Rs. 500 for a tax period.

Exemption from Interest for tax period from Feb-20 to Apr-20

For taxpayers having aggregate turnover upto Rs. 5 crores

• No Interest chargeable till notified dates for relief (staggered upto 06.07.2020)
• After that, Interest @9% to be charged till 30.09.2020

Waiver of interest for tax period from May-20 to Jul-20

For taxpayers having aggregate turnover upto Rs. 5 crores, if GSTR-3B for May-20 to Jul-20 is filed by Sep-20 (staggered dates to be notified).

Other recommendation:

Application for revocation of cancellation of registration, where registrations have been cancelled till 12.06.2020, can be filed upto 30.09.2020.

Source: Press Release issued by PIB dated 12.06.2020