40th GST Council recommendations

A. Reduction in Late Fee for past Returns:

Late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under:

1. GSTR 3B with no tax liability: NIL
2. GSTR 3B with  tax liability: Maximum late fee capped at Rs. 500/- per return
3. The  reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020

B. Relief for small taxpayers (aggregate turnover uptoRs. 5 crore) for late filing of returns for February, March & April 2020 Tax periods:

Rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) as follows:

1. Rate of Interest upto specified dates (staggered upto 6th July 2020): NIL
2. Rate of Interest beyond specified dates (staggered upto 6th July 2020): Reduced to 9% from 18%  PA till 30.09.2020

C. Relief for small taxpayers (aggregate turnover uptoRs. 5 crore) for late filing of returns for May, June & July  2020 Tax periods:

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).

D. One time extension in period for seeking revocation of cancellation of registration:

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunityis being provided for filing of application for revocation of cancellation of registrationup to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.

Corresponding notifcations  giving legal effect are yet to be notified.