Union Finance Minister Nirmala Sitharaman chairs a meeting of the GST Council. (Source: PIB)

Small taxpayers have been provided fresh relief that reduces the cost of compliance and the tax burden under the Goods and Services Tax (GST). This includes relief on late fees for filing of statutory forms.

The were taken at a meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman on Friday.

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

- ‘NIL’ late fee if there is no tax liability

- Maximum late fee capped at Rs. 500 per return if there is any tax liability. The penalty would continue to be Rs 50 per day.

The move is aimed at reducing the pendency in filing of GST returns.

This reduced rate of late fee would apply for all the GSTR-3B returns furnished between July 1, 2020 to September 30, 2020.

For taxpayers with aggregate turnover up to Rs. 5 crore, for the supplies effected in Feb, Mar & Apr 2020, the rate of interest for late furnishing of return has been reduced from 18% per annum to 9% per annum till September 30, 2020, the Ministry of Finance said..

In the wake of the #COVID19 pandemic, for taxpayers having aggregate turnover upto Rs. 5 crore, further relief has been provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in May, June and July 2020 are furnished by September 2020.

To help taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to Sept 30, 2020, where registrations have been cancelled till June 12, 2020.

In July, there will be a meeting to discuss the compensation cess to be given to states. Dates will be fixed subsequently.

This was the 40th meeting of the GST Council.