No late fee on GSTR 9, a biggest tax relief to the GST taxpayers


Goods and Service Tax (GST) is better known for its late fee collection. There is late fee on every GST return filed after the due date. However, GST Council in its 39th GST Council Meeting held on Saturday, 14 March 2020 decided to waive off late fee for delayed filing of GSTR 9 for FY 2017-18 and FY 2018-19. This waive off is only for the businesses having turnover less than 2 crore.

Finance Minister Nirmala Sitharaman chaired this meeting. The other major decisions taken in 39th GST Council Meeting are as follows-

1. GST Council Decided to extend due date of FY 2018-19 GSTR 9 and GSTR 9C until 30 June 2020. Also, mandatory annual Return filing limit of turnover increased from Rs 2 crore to Rs 5 crore. That is,

Turnover (Sale) GSTR 9 GSTR 9C
Upto 2 crore Optional Optional
More than 2 crore – upto 5 crore Mandatory Optional
More than 5 crore Mandatory Mandatory

Easy way for Reconciliation of GSTR 2A with GSTR 3B : GST Returns

2. It also decided to increase the GST rate on mobile phones from 12% to 18%, applicable from 1st April, 2020.

3. The council has also given relief to domestic Maintenance and Repair Organization (MRO) service providers by agreeing to bring parity by allowing 5 percent GST with full ITC.

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4. Now, Rates for all types of match sticks whether machine manufactured and handmade have been rationalised for 12%, applicable from 1st April 2020.

5. Where GST Registration have been cancelled till March 14, 2020, application for revocation can be filed till March 31,2020.

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6. The GST Council will continue with GSTR-1, GSTR-2A and GSTR-3B until September 2020 and postponed the new GST return system.

7. It has deferred proposal of hike in rates on fertilizers and footwear due to current economic slowdown and impact of the novel coronavirus pandemic.

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8. The council also came up with the decision to defer the proposal of rate rationalisation on textiles.

9. Council also approved the “Know your Supplier” scheme. Through this businesses will get some basic information about the suppliers with whom they conduct their businesses.

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10. Interest for delay in payment of GST liability will now be charged on net liability under Section 50 retrospectively, that is to be applicable from July 2017.

11. Implementation of E-invoices and QR code system deferred till 01st October, 2020.

12. Extension of exemption of IGST and Cess on imports under EOU scheme, Advance Authorization, EPCG scheme upto 31st March, 2021.

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13. Physical Verification of premises and financial KYC for new GST registrations will be done.

14. Refund of excess tax payment will be in both cash and credit form.

15. Procedures to reverse common ITC in respect of capital goods will be amended.

March 2020 GST Calendar

Nandan Nilekani, Non-Executive Chairman of Infosys (GSTN), had made a detailed presentation to the GST Council and proposed a plan towards redesigning the GST Network in order to fix the failures. Nilekani assured the Council that all the glitches will be sorted according to all the proposed changes.

The GST Council took in-depth IT glitches analysis. It is said that Deputy Chief Minister of Bihar, Sushil Modi, gave a presentation on the IT challenges currently faced by taxpayers.

GST Discussion Forum

The author of above article is Riya Thawani.

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