40th GST Council meeting- Important Decisions & Notifications

Last Updated On: June 18, 2020, 11:22 a.m.


New Provisions/amendments to be notified in GST in upcoming months.

40th GST Council Meeting Important Decisions, Recent Circulars & Notifications

  1. Reduction in Late Fee for past Returns:

           As a relaxation for all the taxpayers of  late fee for non-furnishing FORM GSTR-3B for the tax period from July 2017 to January 2020 has been reduced/waived as under: –

  • ‘NIL’ late fee if there is no tax liability;
  • Maximum late fee capped at Rs.500/- per return if there is any tax liability.

Note: The reduced rate of the late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020

  1. Reduction of Interest:
  • The reduction of Interest is to give relief for small taxpayers for late filing their returns in the month of February, March, and April 2020.
  • Taxpayers whose aggregate turnover is up to 5 Crore their supplies made by them in the month of February, March and April 2020, their rate of Interest for late furnishing of return for the said months beyond specified dates (staggered up to 6th July 2020) is reduced from 18% to 9% till 30.09.2020.

In other words, the small taxpayers are given a relaxation of not paying any interest till the notified dates (staggered up to 6th July 2020) and thereafter will be charged 9% till 30.09.2020.

  1. Returns and Payments date extended for the next 3 months:

Due to the COVID-19 pandemic, The council had decided to provide relief for taxpayers having an aggregate turnover of Rs. 5Crore by waiving of late fees and interest if the return in form GSTR-3B for supplies effected in the month of May, June, July 2020 is furnished by September 2020.

  1. Facility to Revoke Cancellation:

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of an application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.

  1. GST on Director’s Remuneration:

Applicability of GST on remuneration paid to whole-time directors including the  managing director who is the  employees of the company

As per Section 149(6)  of Companies Act, 2013Liability to GST in respect of remuneration paid to independent directors or those directors who are not employees of the company

To know in detail about GST on Director’s Remuneration you can refer the Blog Leviabiliy of GST on Director’s Remuneration.


Recent Developments in GST, Customs & FTP:


  • AEO License expiring between 1st March & 31st May 2020 – Till 30th June 2020
  • Duty Credit Scrips issued between 01.03.2018 and 30.06.2018 shall be valid till 30.09.2020
  • In MEIS applications which attracted a late cut as on 01.03.2020, the period between 01.03.2020 and 30.06.2020 shall not be counted and the last date for submission of various categories of applications attracting that late cut and the applicable cuts will be accordingly suitable re-determined.
  • For SEIS applications
  • For the services rendered in FY 2016-17, the last date of application with a 10% late cut would be 30.06.2020 and after that date, it would become time-barred.
  • For the services rendered in the FY 2017-18, 5% late cut as was applicable on 31.03.2020, shall continue to be applicable for applications submitted till 30.06.2020, and thereafter 10% late cut would be applicable for applications submitted till 31.03.2021

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