Special meeting in July to discuss state compensation, says Nirmala Sitharaman

Union finance minister Nirmala Sitharaman mentioned on Friday a gathering shall be held subsequent month to solely talk about compensation to states.

Sitharaman mentioned the Goods and Services Tax (GST) council will talk about borrowing to compensate states and who can pay it again.

“In July, which is on the request of all the ministers, there shall be a meeting to discuss exclusively one agenda point – compensation cess. The compensation which has to be given to the states and if at all it results in some kinds of borrowing. How and who is going to pay for it,” The minister mentioned.

The resolution was taken in the course of the 40th GST council assembly over video conferencing for the primary time after the lockdown clamped to stop the unfold of the coronavirus illness (Covid-19).

Nirmala Sitharaman additionally mentioned that registered entities with zero Goods and Services Tax (GST) return submitting and who haven’t filed their returns between July 2017 and January 2020 won’t be charged any late charges.

“For the period from July 2017 to January 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 to January 2020 there will be zero late fees,” she mentioned.

“For people who have a tax liability, a maximum late fee for non-filing of GSTR-3B returns for period July 2017 to January 2020 has been capped to Rs 500. This will apply to all returns submitted during July 1, 2020, to September 30, 2020,” Sitharaman mentioned.

Small taxpayers with turnover as much as Rs 5 crore will now pay a lowered charge of curiosity of 9% from 18% for returns filed for February-April 2020 publish July 6, if filed by September 30, the minister introduced.

She added that they’ll file returns for May to July until September 2020 and no late payment shall be charged.