New Delhi | Jagran Business Desk: Finance Minister Nirmala Sitharaman on Friday said that no late fee will levied on registered entities for delayed filing of Goods and Services Tax (GST) returns with nil liability between July 2017 to January 2020.

Speaking to reports after the GST Council meeting, the Finance Minister said that late fee for non-filing of monthly sales return for others has been reduced to a maximum of Rs 500 for July 2017 to January 2020 period.

"For small tax payers whose aggregate turnover is up to Rs 5 crore, the rate of interest for late furnishing of GST returns for February, March and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18 per cent to 9 per cent per annum and that is only till September 30," news agency ANI quoted Sitharaman as saying.

The Finance Minister also said that small tax payers whose aggregate turnover is up to Rs 5 crore will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June and July 2020, by September 2020, no late fee or interest.

"In July, which is on the request of all the ministers, there shall be a meeting to discuss exclusively one agenda point - compensation cess. The compensation which has to be given to the states and if at all it results in some kinds of borrowing, how and who is going to pay for it," Sitharaman said, as reported by ANI.

"Before the introduction of formula-based sharing of IGST between centre and states, there was a huge accumulation of IGST from 2017-18, which led to an ad hoc decision of sharing accumulated IGST in two halves. This anomaly had to be corrected," she added.

Sitharaman also said that the GST Council is looking at correction of duty inversion in footwear, fertiliser and textiles while adding that discussion on taxing pan masala will hopefully be taken up at GST Council's next regular meeting.

"A special one-agenda meeting will happen in July to discuss compensation requirements of states," she said, as reported by news agency PTI.

The decisions were taken during the 40th GST Council meeting. In the last GST Council meeting, the finance minister had said that the central government will look into the legality of GST Council borrowing from market to meet the compensation requirements.

(With agencies inputs)

Posted By: Aalok Sensharma