Decisions taken in 40th GST Council Meeting

GST COuncil Meeting


The 40th GST council meeting was held on today. This was the first meeting after the outbreak of COVID-19 which was held through video conference in the history of GST. The GST council has made the following recommendations on GST Law & GST Procedures.

1.  Reduction in Late Fees for past returns:-
      A) There will be no late fees for filing of GSTR-3B if there is no tax liability.
     B) In case if there is tax liability, then Council has caped late fee upto Rs. 500 per return for filing GSTR-3B with tax liability.
→ The above reduced late fee will be applicable for all the GSTR-3B returns furnished between 1st July, 2020 to 30th September, 2020.

2.  Relief to Small Taxpayers:-
(A) Relief in interest for late filing of returns for the tax periods of February, March and April 2020:-
→ For small tax payers who have aggregate turnover upto 5 crore, the rate of interest on late furnishing of return beyond specified date (staggered upto 6th July, 2020) is reduced from 18%p.a. to 9%p.a. till 30th September, 2020 for the supplies effected in February, March and April 2020.
→ That means no interest will be charged upto specified date (staggered upto 6th July, 2020) and thereafter only reduced interest will be charged at the rate of 9% p.a. upto 30th September, 2020.

(B) Relief in late filing fees for the tax periods of May, June and July 2020:-
→ Due to Covid-19 pandemic , for taxpayers having aggregate turnover upto Rs. 5 crore, late fee for filing GSTR-3B is waived for the period May, June and July 2020 if such return is filed on or before 30th September, 2020.

(C) Extension in period for seeking revocation of cancellation of registration:-
→ To give relaxation to those taxpayer whose GSTIN has been cancelled upto 12th June, 2020 and who could not filed application for revocation of cancellation, GST council has recommended to extend due date for filing application for revocation of cancellation upto 30th September, 2020.


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