GST Council reduces late fee on GSTR-3B filings for those with liability

The GST Council on Friday, headed by Finance Minister Nirmala Sitharaman, decided to reduce the late fee on the filing of GSTR-3B returns for the period between July 2017 and January 2020.

Addressing media after the meeting held via videoconference, FM Sitharaman said that those entities with no tax liability will not have to submit the late fee for the period.

For entities with tax liability but which have not filed returns or have filed returns late, the late fee has been capped at Rs 500 without interest. Interest will, however, be payable on the tax component at the applicable rate for delays, she added.

In a relief to the small taxpayers with turnover up to Rs 5 crore, the council halved the interest on delayed filing of GST returns for February, March and April to 9 per cent, provided the returns are filed by September 2020.

Also, the deadline for filing returns for May, June and July has been extended till September, without any interest or late fee, Sitharaman said.

The GST Council - the apex decision making body of the indirect tax regime - also discussed the impact of Covid-19, she said.

Inverted duty structure hitting GST collections was discussed, she said, adding the panel was looking at correction of duty inversion in footwear, fertiliser and textiles.

Sitharaman said that the council will meet again in July to discuss the compensation cess to the states, wherein the council members would discuss whether additional borrowings will have to be done for the same.