A. Reduction in Late Fee for Past Returns

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

-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 reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020.

B. 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 opportunity is being provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registration have been cancelled till 12.06.2020.

C. Relief for small taxpayers for subsequent tax periods (May, June & July 2020)

  • For taxpayers having aggregate turnover up to Rs. 5 crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR 3B for the supplies effected in the months of May, June & July 2020 are furnished by September, 2020. (staggered dates to be notified)

D. Further relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods

  • For small taxpayers having aggregate turnover up to Rs. 5 crore, for the supplies effected in the month of February, March & April 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6th July 2020) is reduced from 18% per annum to 9% per annum till 30.09.2020.
  • In other words, for these months, small taxpayers will not charged any interest till the notified dates for relief (staggered upto 6th July 2020) and thereafter 9% interest will be charged till 30.09.2020.

Source- Recommendations of 40th GST council related to Law & Procedure

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April 2021