• CCI AD FROM 5th April 2021

Recommendations of GST council related to Law & Procedure

Circular No. ES/199/2020-21                                                            13th June, 2020   


To : Members of the Council


Sub: Recommendations of GST council related to Law & Procedure


Dear Member,


We would like to inform you that the 40th GST Council Meeting was held under the Chairmanship of Union Finance & Corporate Affairs Minister, Smt Nirmala Sitharaman through video conferencing on 12th June, 2020. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs, Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance& States/ UTs. In this regard, Press Release has been issued by the Ministry of Finance dated 12th June, 2020.


The GST Council has made the following recommendations on Law & Procedures changes-


1) Measures for Trade facilitation:



a) Reduction in Late Fee for past Returns:

To clean up pendency in return filing, late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced/waived as under: -


i) ‘NIL’ late fee if there is no tax liability;

ii) Maximum late fee capped at Rs. 500/- per return if there is any tax liability.


The reduced rate of the late fee would apply for all the GSTR-3B returns furnished between  01st July, 2020 to 30th September, 2020.


b) Relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods:​

For small taxpayers (aggregate turnover upto Rs. 5 crore), for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for these months beyond specified dates (staggered upto 6th July, 2020) is reduced from 18% per annum to 9% per annum till 30th September, 2020


In other words, for these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered upto 6th July, 2020), and thereafter 9% interest will be charged till 30th September, 2020.


c) Relief for small taxpayers for subsequent tax periods (May, June & July 2020):​


For taxpayers having aggregate turnover upto Rs. 5 crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).



     d) One time extension in period for seeking revocation of cancellation of registration:

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration upto 30th September, 2020, in all cases where registrations have been cancelled till 12th June, 2020.


2) Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30th June, 2020.



Please note that the recommendations of the GST Council would be given effect through relevant Circulars/Notifications which alone shall have the force of law.

Members may kindly make a note of the above recommendations of the GST Council.

Thanking you,


Yours faithfully,