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New Delhi, June 12 (IANS) The GST Council on Friday decided to reduce the late fee on the filing of GSTR-3B returns for the period between July 2017 and January 2020.
The late fee has been capped at Rs 500, but interest will be charged at the existing rate on the due tax liability.
Speaking to the media here after a GST Council meet through videoconference, Union Finance Minister Nirmala Sitharaman said that those entities with no tax liability will not have to submit the late fee for the period.
For entities with tax liability but which have not filed returns or have filed returns late, the late fee has been capped at Rs 500 without interest. Interest will, however, be payable on the tax component at the applicable rate for delays.
The compliance relaxations have been made in view of the coronavirus crisis which has impacted businesses.
Sitharaman said that the council will meet again next month to discuss the compensation cess to the states, wherein the council members would discuss whether additional borrowings will have to be done for the same.
On the Friday's meeting, Sitharaman said that the council discussed the correction of the inverted duty structure as it had impacted the GST collection.
Specifically, inverted duty structure on textile sector was discussed but no decision had been taken. In an earlier meeting, inverted duty on mobiles phones was corrected. Two other items where there is a case of inverted duty structure (inputs attracting more tax than final product) -- fertilisers and footwears -- were not taken up for discussion at Friday's meet.
