New Delhi: The Government on Friday announced a rate cut for small taxpayers, adding that no late fees would be charged in case of late filing of returns for the period between July 2017 to January 2020 by those without tax liabilities in view of Covid-19.
The 40th GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman through video conferencing here.
Briefing reporters in a virtual conference, Ms Sitharaman said the GST Council has recommended reduction in late fee for past returns for Trade facilitation.
‘As a measure to clean up pendency in return filing, late fee for non-furnishing Form GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced. There will be nil late fee if there is no tax liability.’
Maximum late fee was capped at Rs 500 per return if there is any tax liability.
The reduced rate of late fee would apply for all the GSTR-3B returns furnished between July 1 to September 30, 2020.
Ms Sitharaman said correction of inversion of duties was taken up in the GST Council meeting as well.
‘There has been a unanimity that inversion causes revenue generation problems and unexpected refunds, the question was when this is to be corrected. While the principle regarding correction of inversion of duties has been agreed upon by everybody, the question of the right time to make the correction remained, hence this decision has been postponed,’ she said.
The FM also said in July, there will be a meeting to discuss exclusively on agenda point including compensation cess to be given to states. Dates will be fixed subsequently, she added.