{"id":10688,"date":"2020-06-13T18:44:43","date_gmt":"2020-06-13T13:14:43","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=10688"},"modified":"2020-06-15T12:40:03","modified_gmt":"2020-06-15T07:10:03","slug":"40th-gst-council-meeting","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/40th-gst-council-meeting\/","title":{"rendered":"40th GST Council Meeting: Overall Updates"},"content":{"rendered":"\n<p class=\"has-drop-cap\">For the first time after the nationwide lockdown, the <strong>40th GST Council Meeting<\/strong> was chaired by Finance Minister NirmalaSitharamanover and done with video conferencing.&nbsp;The discussion was on GST compensation, inverted tax structure, and possibilities of rate rationalization, which were adjourned to the next council meeting. Subsequently, this particular GST Council Meeting held on12th June 2020to discuss GST compensation to states and ways to fund the same.<\/p>\n\n\n\n<p>Finance Minister NirmalaSitharaman announced significant relief in GST Council Meeting for insignificant or smaller taxpayers with <strong>an aggregate turnover of not more than Rs<\/strong> 5 Cr. Moreover, the Finance Minister cut the interest rate <strong>from 18 percent to 9 percent<\/strong> on late submission of returns for <strong>February, March, and April<\/strong>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Overview on 40th GST Council Meeting<\/h2>\n\n\n\n<p>There\nshall be <strong>no late fee for filing GSTR 3B\nreturns with no liability<\/strong> as per the government&#8217;s announcement in GST\nCouncil Meeting, pending from <strong>July 2017\nto January 2020.<\/strong> On the other hand, the maximum late fee has been covered\nto Rs 500 for those with liabilities. It was also mentioned that no decision on\nissues related to inverted duty structure and discussion on the GST rate cut\ntook place in the meeting were also postponed.<\/p>\n\n\n\n<p>Nevertheless, amid the revenue crisis, the council is looking at a few issues, especially in <strong>fertilizer, footwear, and textile sectors<\/strong>. GST council is thinking over-borrowing to fund compensation as per the government&#8217;s new concern. The government allowed taxpayers who could not get canceled <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registrations<\/strong><\/a> <strong>restored in time to apply<\/strong> for the cancellation of registration in another significant decision, up to <strong>September 30, 2020<\/strong>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the major Highlights\nof the 40th GST Council Meeting?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Waiver from\/Reduction in the Prior Period Late Fee<\/h3>\n\n\n\n<p>Quite a\nfew taxpayers have unsuccessful in filing GSTR-3B for the period from&nbsp;<strong>July 2017\ntowards January 2020<\/strong>. For the\nconcern, the GST late fee reduction for prior periods from July 1, 2017,\ntowards January 31, 2020, is as follows:<\/p>\n\n\n\n<ul><li>No late fee with\nnil tax liability for taxpayers&nbsp;<\/li><li>For the taxpayers\nwho file their returns between July 1, 2020, and September 30, 2020, there is a\nmaximum late fee of Rs 500 per return.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"592\" height=\"340\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-89.png\" alt=\"Reduction in the Prior Period Late Fee\" class=\"wp-image-10689\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-89.png 592w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-89-300x172.png 300w\" sizes=\"(max-width: 592px) 100vw, 592px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Late fee waiver and Interest\nRelief for periods February-July 2020: Taxpayers MSME<\/h3>\n\n\n\n<p>For filing\nof returns done before September 30, 2020, for small taxpayers whose aggregate\nturnover is up to Rs 5 crore beyond July 6, 2020 (as per staggered dates) the\nrate of interest for late furnishing of GST returns for Feb, Mar and April\n2020, is being reduced from 18% to 9% Per Annum.<\/p>\n\n\n\n<p>Point to\nbe noted that if tax for these months is paid before July 6, 2020, or date as\napplicable based on turnover, then there is no interest to be charged. If the\nreturns are filed before September 30, 2020 (dates are yet to be announced),\nthe late fee and interest will be waived off for May, June, and July 2020.<\/p>\n\n\n\n<p>Class of\nregistered persons having aggregate turnover up to Rs. 5 crores in the\npreceding financial year were granted relief according to the Notification <strong>No. 31\/2020-Central Tax dated April 3, 2020<\/strong>.\nIt has been done by way of conditional waiver of interest if <strong>GSTR-3B<\/strong> is filed within date quantified\nin the notification, as mentioned above.&nbsp;<\/p>\n\n\n\n<p><strong><em>Particulars and circumstances of notification are reproduced below for your easy understanding:-<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"795\" height=\"378\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-90.png\" alt=\"Taxpayers MSME\" class=\"wp-image-10690\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-90.png 795w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-90-300x143.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-90-768x365.png 768w\" sizes=\"(max-width: 795px) 100vw, 795px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Analysis<\/h3>\n\n\n\n<ul><li>Where the returns not filed before the specified due dates, a reduced rate of <strong>9% would be charged till September 30, 2020<\/strong>, as per government recommendation.<\/li><li>To avoid the interest exposure, timely recommendations by GST Council may thrust the taxpayers to file the returns before the itemized due date.<\/li><li>Moreover, the point to be noted that the Press release is silent regarding late fees in case returns are not filed on or before the specified date. If returns are filed on or before specified dates, conditional late fee waiver was prescribed for the abovementioned class of taxpayers in terms of Notification No. 32\/2020 \u2013 <strong><em>Central Tax dated April 3, 2020<\/em><\/strong><sup><a href=\"http:\/\/www.gstcouncil.gov.in\/352020-central-tax-dt-03-04-2020\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><strong><em>.<\/em><\/strong><\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/latest-changes-in-gst-due-to-covid-19\/\">Latest Changes In GST Due To COVID 19<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Relief for the small taxpayer for subsequent tax periods in the filing of GSTR-3B<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"684\" height=\"293\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-91.png\" alt=\"filing of GSTR-3B\" class=\"wp-image-10691\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-91.png 684w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-91-300x129.png 300w\" sizes=\"(max-width: 684px) 100vw, 684px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Revoking cancellations of GST registration: Extended the\nTime Limit<\/h3>\n\n\n\n<p>For all\nthose registrations which were canceled till June 12, 2020, the period for\nseeking revocation of canceled GST registrations is allowed till September 30,\n2020. According to the GST Act, the time limit was thirty days from the date of\nthe issue of the cancellation order.<\/p>\n\n\n\n<p>An\nopportunity is being provided for \ufb01ling of application for revocation of\ncancellation of registration up to 30.09.2020 to facilitate taxpayers who could\nnot get their canceled GST registrations restored in time, in all cases where\nregistrations have been canceled till 12.06.2020<\/p>\n\n\n\n<p>It was recommended that the one-time extension be granted till June 30, 2020, where registrations have been canceled till March 14, 2020, in <a href=\"https:\/\/corpbiz.io\/learning\/key-highlights-of-39th-gst-council-meeting\/\"><strong>39th GST Council Meeting<\/strong><\/a>. Stimulatingly, the said recommendations of the 39th GST Council Meeting are not informed up till now.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">States and UTs GST Compensation: Discussion<\/h3>\n\n\n\n<p>GST\nCouncil is considering at a borrowing possibility for funding the compensation\nto states and Union Territories. In the past two months, the <strong>GST receiving has been 45% of the customary\nstages<\/strong>. The matter will be taken up, which is going to be scheduled in July\n2020 in a special one-agenda council meeting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Alteration of the Inverted Tax Arrangement&nbsp;<\/h3>\n\n\n\n<p>FM claimed\nthat there is an issue of an <strong>excess\nrefund being granted for accumulated ITC due to an inverted tax structure<\/strong>.\nAn elaborate discussion happened about the issue pertaining to only the textile\nindustry. However, sectors such as footwear and fertilizers could not be picked\nup for review. The same has postponed to the future meeting as the decision\ncould not be taken at this point.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Goods &amp; its Rate Explanation: Postponed<\/h3>\n\n\n\n<p>Finance\nMinister, along with the members, discussed the rate reduction of specific\nitems as these were conveyed to the GST Council Meeting\u2019sannouncement, which\nincludes brick kilns, and pan masala linked items. NirmalaSitharaman has\nassured of taking up the substance in the next ordered GST Council meeting.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>These are just an evaluation, and we\nalways encourage our readers to examine the issue in-depth based on the\nconsidered notifications and circulars. This blog has tried to provide you a\nsimple understanding of items grounded on the latest announcement by the GST\nCouncil Meeting on GST compensation, inverted tax structure, and possibilities\nof rate rationalization. <\/p>\n\n\n\n<p>We at <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> have the professional and legal expertise, to reduce your GST issues, as per your business targets. We would assist you with consultation, documentation regarding new structures, and submission of other compliances, along with filing the request\/applications according to GST Council Meeting.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/inspection-under-gst-a-concise-study\/\">Inspection under GST: A Concise Study<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the first time after the nationwide lockdown, the 40th GST Council Meeting was chaired by Finance Minister NirmalaSitharamanover and done with video conferencing.&nbsp;The discussion was on GST compensation, inverted tax structure, and possibilities of rate rationalization, which were adjourned to the next council meeting. Subsequently, this particular GST Council Meeting held on12th June 2020to [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":10692,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,153],"tags":[664],"acf":{"service_id":"132"},"authorName":"Archita Bhattacharjee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/WhatsApp-Image-2020-03-18-at-11.26.19-AM-1.jpeg","authorDescription":"Archita Bhattacharjee is working as Legal Analyst (Team Lead, Research &amp; Development) at Corpbiz and has proving experience about 2 years as Corporate Legal Researcher in law firms as well as Rajya Sabha and authors in diverse publications. She has refined her skills by representing India in Paris, France and the University of Leiden over implications of International Humanitarian and Criminal Law being certified member of many Legal Centers.","postViews":4844,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10688"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=10688"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10688\/revisions"}],"predecessor-version":[{"id":10726,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10688\/revisions\/10726"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/10692"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=10688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=10688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=10688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}