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Penalty interest rate for delayed payment of GST reduced by 50%!
Posted on: 13/Jun/2020 11:36:36 AM
The Central Finance Minister Nirmala Seetharaman has informed that the interest rate levied as a penalty for delayed submission/payment of GST details is now reduced by half (50%).
This decision has been taken in the view of the predominant situation where all the micro/mini/small/medium industries have been encountering huge hardships in the lockdown imposition period!
A meeting of the GST (Goods and Service Tax) Council was organized as a video-conference yesterday (Friday, 13th June) presided by the Central Finance Minister Nirmala Seetharaman.
The Central Finance Minister shared after the meeting with the press:
“Time extension is being given until 30th September for the small-scale industries with an annual income of less than Rs. 5 Crores to file the GST returns without any penalty.
The penalty interest rate for the delayed filing of the GST for the months of February, March, and April is being reduced by half (50%) - from 18% to 9%.
At the same time, the above concession of a penalty interest reduced by half will be applicable only for the companies which file their GST returns before 30th September.
For the organizations which have not filed their GST returns from July 2017 to January 202o, no penalty will be charged for filing the due GST returns now as per the above time extension.
Further, for the organizations which paid GST for the above period but did not file their GST returns, the maximum penalty charged is reduced to Rs. 500.
During the video-conference, we discussed and reviewed in detail about the huge hardships encountered by the micro/mini/small// medium industries because of the lockdown imposition, and the impact it has caused for them in the indirect taxes to be paid.
In this regard, due to the lockdown imposition, the GST revenue earned by the central/state governments is only 45% off (of the normal conditions).
Further, it was also discussed in detail in the meeting regarding changing the GST structure for items such as footwear, fertilizers, textile items, etc. The issue of charging additional GST on items such as ‘paan masala’ will be taken up and discussed in the next GST Council Meeting.”
The central Finance Minister also informed that a special meeting is being scheduled in July to decide the share of the GST revenue to be paid to the states.
It is worth recalling at this juncture that the central government has grgranted a time extension for filing the GST returns for the months of March and April until the end of June.
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