This Article is From Jun 12, 2020

Government Cuts Interest On Delayed Filing Of GST Returns By 50%

Measures ranged from waiving off late fee to reducing interest on late filing of GST for small businesses as the country battles COVID-19 pandemic.

Government Cuts Interest On Delayed Filing Of GST Returns By 50%

Goods and Services Tax: Nirmala Sitharaman

There will be no late fee for those who have no tax liability and have not filed returns between July 2017 and January 2020, the government announced today while easing compliance rules for Goods and Services Tax (GST) compliance norms at its first meeting since the nationwide lockdown was implemented to prevent the spread of coronavirus pandemic. Finance Minister Nirmala Sitharaman also ruled out any tax increase. "States said this is not the time to increase taxes and so we deferred all proposals to increase taxes," Ms Sitharman said.

The government decided to defer increasing GST on textiles and garments, fertilisers and footwear was as all GST Counciil members felt lockdown has just been lifted.

The government also reduced interest on late GST filing for small businesses with a turnover up to Rs 5 crore from 18 per cent to 9 per cent for furnishing late returns for months of February, March and April 2020 beyond July 6, 2020.

"The small taxpayers will not be charged any interest till the notified dates for relief (staggered up to 6th July 2020)and thereafter 9 per cent interest will be charged till 30.09.2020," the government said in a press release.

In wake of COVID-19 pandemic, for taxpayers having aggregate turnover up to Rs. 5 crore, further relief was 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 and July, 2020 are furnished by September, 2020, the release said.

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 September 30, 2020, in all cases where registrations have been cancelled till June 12, 2020.