Relaxation in GST Late Fees and Interest

In the current situation of Covid-19 pandemic, a welcome decision has been taken by 40TH GST Council Meeting held on 12th June 2020 which has come as a big relief for small taxpayers in the form of relaxation in late fees and interest. These announcements will help the small taxpayers in these following ways:-

(a) There are a large number of GST registrants who had defaulted in filing of GSTR-3B but they were not able to get their registrations restored due to heavy late fees extending up to Rs. 10,000 per return. Now those registrants will be able to revive their registration by paying nil or nominal late fees of Rs. 500 per return;

(b) Looking to Covid-19 conditions, the government has already extended due date of filing GSTR-3B [Feb. 2020 to April 2020] for notified dates staggered up to 6th July 2020. Now, a further relaxation has been announced that if return for Feb. 2020 to April 2020 is filed after notified dates, interest shall be charged @ 9% per annum in place of 18% till 30.09.2020.

(c) Further relief has been announced for small taxpayer in form of interest and late fee waiver for returns for the tax period May 2020 to July 2020.

(d) Taxpayers whose GST registrations have been cancelled till 12th June 2020 are given a one time opportunity to apply for revocation of cancellation of registration till 30th September 2020.

The major recommendations made by GST council are summarized here below:-