(Image source from: Hindustantimes.com)

On Friday, Union Finance Minister, Sitharaman said that tax payers who have a tax liability and have not filed GSTR-3B from July 2017 to Jan 2020 don’t have to pay Rs.500 as late fees.

She said “For the period from July 2017 to January 2020, which is prior to the Covid period, a lot of return filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017 to January 2020 there will be zero late fees,”

“For those who have a tax liability, a maximum late fee for non-filing of GSTR-3B returns for period July 2017 to January 2020 has been capped to Rs 500. This will apply to all returns submitted during July 1, 2020, to September 30, 2020.”

For returns filed for February-April after July 6th and before September, the minister said, small tax payers with a turnover up to Rs 5 crores will pay a less rate of interest. Earlier they were paying 18%, now they have to pay only 9%.

They have time till September for filing their returns from May to July. However, they won’t be charged late fees. During the 40th GST council meeting over video conferencing these decisions were made.

Considering the request of all ministers, Sitharaman announced that in July there would be a meeting to discuss about compensation cess that includes the compensation that States will need while borrowing and returning back the amount.

- Neha Makhija