40TH GST COUNCIL MEETING

 

40th GST Council Meeting Live Updates

Read 40th GST council meeting, via video conferencing to phase out all the pending issues of before and after corona lockdown and certain industry aspects that have come to a heating point due to the pandemic calamities across the country. Check out the latest GST council updates as per direct official sources here at blog.saginfotech.com and also ask any doubt & queries below in the comment which will be answered by expert taxation professionals of organization.

40th GST Council Meeting Live Updates

·         Prior to the introduction of the formula-based sharing of IGST between the Center and the states, there was a massive accumulation of IGST from 2017-’18, leading to an ad hoc decision to share the IGST accumulated in two parts. This discrepancy needs to be rectified.

·         While everyone has agreed on the principle about the correction of inversion of duties, there is a question remained of the right time to do the required correction, so, for now, they don’t come with any decision and it gets postponed, as explained by the Finance Minister

·         Council also decided that a special GST Council meeting with one-agenda will be organized in July month, in which the main topics to discuss will be compensation cess, which is to be given to the states, and if required, who would be liable to pay for the borrowing

·         Taxpayers whose canceled GST registrations don’t get restored in due time can now apply for revocation of cancellation of registration before September 30, 2020. It will be applicable only if the registration gets canceled on or before June 12, 2020

·         Small taxpayers having turnover up to ₹ 5 crores will be not charged with any late fee or interest if thy successfully file the form GSTR-3B for the supplies of May, June, and July month, by September 2020

·         For small taxpayers having turnover up to ₹ 5 crores, the rate of interest for filing the GST returns with delay for the month of Feb, Mar and April 2020, beyond July 6, 2020, has been reduced to 9%, which was 18% earlier

·         The government also provided some relief for small taxpayers (with no liability) by removing the late fee for GSTR 3B filing. However, returns with liability will attract Rs. 500 as the maximum amount for the late fees

·         The 40th GST Council meeting is still in progress, but the virtual media briefing gets delayed. Now it will be conducted when the GST Council meeting will be finished

·         Besides Finance Minister Nirmala Sitharaman Ji, Anurag Thakur, states’ & UTs finance ministers and senior Indian government officers join the meeting

Expectations of 40th GST Council Meeting

Our nation’s financial condition was already in trouble and then the entry of the COVID-19 pandemic made everything worse. The Central Government imposed back to back lockdown to contain the spread of the virus. Due to all these, the Financial Condition of Country is drowning and a helpful hand is required to keep it above the water. That’s why the 40th Goods and Services Tax (GST) Council meeting is vital.

The 40th GST Council Meeting is the first meeting since the outbreak of the COVID-19 in India and after the previous council meeting held on March 14, 2020. The meeting will be conducted through Online mode (Video Conferencing) due to the prevailing conditions of COVID-19. As usual, the meeting will be led by the Union Finance Minister Nirmala Sitharaman and it contains members of all states and Union Territories (UTs).

Read Also: All GST Council Meeting Updates (1st to Last Meeting)

It is already clear that the Finance Ministry is not in favor of raising the GST rates on non-essential items to boost the revenue collections amidst the COVID-19 pandemic. The valid reason behind it is that If the rates of GST on non-essential items are increased it will affect the demand in a bad way and also impede the overall economic recovery. However, it is not the confirmed update, the decision is expected to come out after the 40th GST Council meeting. Some experts are also declining the possibility of the introduction of a disaster cess because it will also cause an adverse effect.

Experts expect that the 40th GST Council meeting would discuss the influence of the COVID-19 on revenue collection of the Centre and states and it will also include ways to fill the revenue gap. Another topic that is expected to be discussed in this meeting is ways to collect funds to give compensation amounts to states for their loss reported due to the implementation of Goods and Services Tax (GST).

The GST Council can also discuss withdrawing the late fee or penalty/ interest for non-filing of GST returns for the time period August 2017 to January 2020. However, we have to wait for the 40th GST Council meeting, and then the picture will be cleared. Before that, we can only represent our expectations.

Recommendations of GST council related to Law &Procedure

The 40th GST Council met under the Chairmanship of Union Finance &Corporate Affairs Minister Smt

Nirmala Sitharaman through video conferencing here today . The meeting was also attended by Union

Minister of State for Finance &Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States

&UTs and senior officers of the Ministry of Finance&States/ UTs.

The GST Council has made the following recommendations on Law &Procedures changes.

 

1. Measures for Trade facilitation: Reduction in Late Fee for past Returns:

As a measure to clean up pendency in return filing, late fee for non-furnishing FORM GSTR-

3B for the tax period from July, 2017 to January, 2020 has been reduced / 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.

1.Thereduced rate of late fee would apply for all the GSTR-3B returns furnished between

01.07.2020 to 30.09.2020

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

periods:

1.For small taxpayers (aggregate turnover uptoRs. 5 crore), for the supplies effected in the month

of February, March and 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 be

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..

 

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

In wake of COVID-19 pandemic, for taxpayers having aggregate turnover upto 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 and July, 2020 are furnished by September,

2020 (staggered dates to be notified).

1. 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

opportunityis being provided for filing of application for revocation of cancellation of

Registration up to 30.09.2020, in all cases where registrations have been cancelled till

12.06.2020. Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30.06.2020.

2.Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/Notifications which alone shall have the force of law.