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No Late Fees on GSTR-3B for NIL returns, Late Fee capped at 500rs: GST Council

The Goods and Services Tax (GST) Council today decided to waive off late fees on GSTR-3B with Nill Liabilities. The Finance Minister Nirmala Sitharaman said that, For the period from July 2017 to Jan 2020, which is prior to the COVID period, a lot of Return Filing has been pending. For all those who have no tax liabilities but who have not filed their returns between July 2017-Jan 2020, there will be zero late fees.

The Finance Minister also said that, For people who have a tax liability, the maximum late fee for non-filing of GSTR-3B returns for the period July 2017 – January 2020 has been capped to Rs 500. This will apply to all returns submitted on July 1, 2020. Small taxpayers whose aggregate turnover is up to ₹ 5 crores will be provided a waiver of late fees and interest if they file the form GSTR-3B for the supplies affected in months of May, June, and July 2020, by September 2020, no late fee or interest.

For small taxpayers whose aggregate turnover is up to ₹ 5 crore, the rate of interest for late furnishing of GST returns for Feb, Mar and April 2020, beyond July 6, 2020: the rate of interest is being reduced from 18% to 9% GSTR-3B is a monthly self-declaration that has to be filed a registered dealer from July 2017 till March 2020.

MCA launches LLP Settlement Scheme, 2020; Shall allow a One-Time Condonation of Delay in Filing Statutorily Required Documents with Registrar

The Ministry of Corporate Affairs ( MCA ) has launched the Limited Liability Partnership LLP Settlement Scheme, 2020. It has been observed that due to applicability of additional fee on late filing, which in case of inordinate delay could actually become a financial burden, a large number of Limited Liability Partnerships (LLPs) have remained non-compliant, mainly on account of their inability to pay late fees for the cumulative period of delay. As part of Government’s constant efforts to promote ease of doing business, it has been decided to give a One-time relaxation in an additional fee to the defaulting LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future. Accordingly, the Central Government has decided to introduce a scheme namely “LLP Settlement Scheme, 2020”, by allowing a One-time condonation of delay in filing statutorily required documents with the Registrar. LLPs, that wish to avail themselves of the scheme, may file the pending documents/Forms and make good the defaults, to gain immunity from prosecutions for such defaults. The Scheme shall come into force on the 16th March, 2020 and shall remain in force up to 13th June, 2020. It would be applicable to a “defaulting LLP” for filing overdue documents, which were due for filing till 31st October, 2019 on a payment of a nominal additional fee of Rs 10/- per day for the period of delay, in addition to any fee as is payable for filing of such document or return, subject to a maximum amount of Rs. 5,000/- as the additional fee per document. The Scheme shall apply to the filing of the following documents: Form-3- Information with regard to the limited liability partnership agreement and changes, if any, made therein; Form-4- Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/designated partner; Form-8- Statement of Account & Solvency (Annual or Interim); and Form-11- Annual Return of Limited Liability Partnership (LLP). The Scheme is being introduced in pursuance of the Government’s objective of providing greater Ease of Living to the citizens of the country and is expected to provide significant relief and a window of opportunity for LLPs to abide by the Law & conduct business accordingly.

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GOVT NOTIFIES INCREASE IN GST THRESHOLD LIMIT

The Central Government, on Thursday notified the increase in GST threshold limit in a relief for small traders. The increased threshold limit will be applicable from 1st April 2019. Further, the effective date for availing higher turnover cap of Rs 1.5 crore for availing composition scheme by traders has also been fixed as April 1.

The Government also notified that the service providers and suppliers of both goods and services with a turnover of up to Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 per cent from the beginning of next fiscal. The decisions taken by the GST Council headed by the Finance Minister Arun Jaitley has now been made applicable to the taxpayers.

These decisions would come into effect from April 1, a finance ministry statement said. “There would be two threshold limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. Rs 40 lakhs and Rs 20 lakhs. States would have an option to decide about one of the limits.

“The Threshold for Registration for service providers would continue to be Rs 20 lakhs and in case of Special Category States Rs 10 lakhs,” it said. Also the GST Composition Scheme, under which small traders and businesses pay a 1 per cent tax based on turnover, can be availed by businesses with a turnover of Rs 1.5 crore, against the earlier Rs 1 crore, with effect from April 1.