GST relief for small taxpayers to minimize C-19 impact
NEW DELHI : “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,” said Union Finance Minister Nirmala Sitharaman after the 40th GST Council meeting held through video conference.
In a virtual media briefing Finance Minister Sitharaman on friday on outcomes of Goods and Services Tax (GST) meeting in Delhi. In the briefing, she said, “For the period from July 2017 to Jan 2020, which is prior to 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 and Jan 2020, there will be zero late fees.”
“The small taxpayers will not be charged any interest till the notified dates for relief (staggered up to 6th July 2020)and thereafter 9 per cent interest will be charged till 30.09.2020,” the government said in a press release.
There will be no late fee for those who have no tax liability and have not filed returns between July 2017 and January 2020, the government announced today while easing compliance rules for Goods and Services Tax (GST) compliance norms at its first meeting since the nationwide lockdown was implemented to prevent the spread of corona virus pandemic.
FM also ruled out any tax increase. “States said this is not the time to increase taxes and so we deferred all proposals to increase taxes,” Ms Sitharman said. The government decided to defer increasing GST on textiles and garments, fertilisers and footwear was as all GST Council members felt lock down has just been lifted.
The government also reduced interest on late GST filing for small businesses with a turnover up to Rs 5 crore from 18 per cent to 9 per cent for furnishing late returns for months of February, March and April 2020 beyond July 6, 2020.
(With Agency Inputs ).
