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Govt caps late fee on GSTR-3B returns at Rs 500; zero late fee for returns with no tax liability

Govt caps late fee on GSTR-3B returns at Rs 500; zero late fee for returns with no tax liability

In a major relief to the taxpayers, the government has capped that maximum late fee on GSTR-3B returns at Rs 500. CBIC said that the government has decided to cap the maximum late fee for filing GSTR-3B returns for the tax period of July 2017 to July 2020, given that such returns are filed before 30 September 2020. Earlier, in the GST Council meet, Finance Minister Nirmala Sitharaman had announced that cap of Rs 500 will be imposed on the late fee for filing GSTR-3B returns for the period of July 2017 to January 2020. Also, it was announced that there will be zero late fees for those with no tax liability.

In the 40th GST Council meeting, FM Sitharaman made important announcements on GST return late fee waiver and reduced interest rate further being extended on account of the coronavirus crisis but refrained from bringing changes in the inverted duty structure. The Council also deferred the decision of raising rates on textiles, fertilisers, and footwear to correct the inverted duty structure. States unanimously agreed on correcting the inverted duty structure but said that now is not the right time to raise rates when the idea is to revive demand in the economy.

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