GST Council meet
On June 12, 2020, the Finance Minister Nirmala Sitaraman chaired the 40th GST Council Meet.
The minister at the meet announced that no late fee will be charged from the taxpayers (small taxpayers) that had filed GST returns between July 2017 and January 2020. This is being done as there is lot of GST return filing that is pending in the period.
The Council has capped maximum late fee for those that have tax liability for non-filing of GST-3B returns.
Reduction in interest
For the small taxpayers, whose aggregate turn over is Rs 5 crore, the rate of interest for filing GST return for February, March and April, 2020 and beyond July 6, 2020 is to be reduced from 18% to 9% per annum. Also, for the small taxpayers whose turnover is up to Rs 5 crore, waiver of late fees is to be provided if they file the GSTR-3B form for the supplies that were affected in May, June and July by September 2020.
Integrated Goods and Services Tax
The Finance Minister Nirmala Sitaraman announced that a new sharing formula has been implemented. Under the new formula, the centre can release funds to the states without making adjustments. Before introducing formula based IGST sharing, there was huge accumulation of IGST that led to sharing of accumulated IGST in two halves.
This step will also help the Centre to clear the bills of compensation that are pending, in the period of December, January and February.
Month: Current Affairs - June, 2020
Category: Economy & Banking Current Affairs