Speaking in a virtual media briefing on 40th GST Council meeting, Union Finance Minister said that "For the period from July 2017 to Jan 2020, which is prior to Covid-19 period, a lot of return filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017-Jan 2020 there will be zero late fees."
Sitharaman also said that 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 per cent to 9 per cent per annum and that is only till September 30.
"For people who have tax liability, maximum late fee for non-filing of GSTR-3B returns for period July 2017 - January 2020 has been capped to Rs 500. This will apply to all returns submitted during July 1, 2020 - September 30, 2020," Nirmala Sitharaman added.
Further in the GST council meeting, Sitharaman said that 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, no late fee or interest.
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Among the various decisions, Sitharaman also announced that 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," Sitharaman added.