GST Council Meeting Full Press Release discussion

Summary

This video discusses key updates regarding GST, including a new amnesty scheme that reduces late fees for returns filed from July 2017 to April 2021. It explains the relaxation of interest rates for delayed payments in March and April, along with the different fee structures based on turnover. The video also covers the filing process for GST returns, detailing the requirements for annual returns and certificates, especially for businesses with higher turnover. The presenter emphasizes the importance of timely filing and the benefits of these recent government relaxations for taxpayers.

Takeaways

• 😀 The government has introduced an amnesty scheme for GST return filers with pending returns from July 2017 to April 2021.
• 😀 GST late fees for GSTR-3B have been reduced significantly: ₹500 per return for no tax liability, and ₹1000 for returns with tax liabilities.
• 😀 Businesses with turnover up to ₹1.5 crore will now pay a maximum late fee of ₹2000 per return, while those with turnover between ₹1.5 crore and ₹5 crore will pay ₹5000.
• 😀 For businesses with turnover above ₹5 crore, no relaxation on late fees is available. The original late fee charges remain applicable.
• 😀 No interest will be charged for the first 15 days after the due date for GST returns filed in March and April 2024.
• 😀 After 15 days, an interest rate of 9% will apply for the next 45 days. Businesses can avoid interest if they file returns within this grace period.
• 😀 For businesses with turnover under ₹2 crore, no mandatory filing of sales certificate is required for annual return submissions.
• 😀 Businesses with turnover above ₹5 crore must submit a sales certificate for annual returns to comply with new regulations.
• 😀 March-April GST filers will benefit from reduced interest charges, including a 9% interest rate after the first 15 days of delay.
• 😀 Taxpayers are advised to take advantage of the amnesty scheme to avoid higher penalties and benefit from the reduced late fees.
• 😀 The amnesty scheme and late fee reductions are specifically for pending GST returns and do not apply to future periods, which will have standard penalties.

Q & A

What is the latest GST amnesty scheme introduced in the video?

The GST amnesty scheme aims to provide relief to taxpayers with pending GST returns from July 2017 to April 2021. If there is no tax liability, late fees are reduced to a maximum of ₹500 per return. For returns with tax liability, the late fee is capped at ₹1000 per return.

How has the late fee for GST returns been adjusted for different taxpayers?

For GST returns (GSTR-3B), if there is no tax liability, late fees are reduced to ₹500 per return. For taxpayers with a turnover up to ₹1.5 crore, the late fee is ₹2000, and for turnovers between ₹1.5 crore and ₹5 crore, it is ₹5000. Businesses with a turnover above ₹5 crore are not eligible for any relaxation.

What are the changes made to the interest rates on late GST payments?

For GST payments, the government has introduced a reduced interest rate scheme. No interest will be charged for the first 15 days after the due date. After 15 days, interest is charged at a reduced rate of 9% for up to 45 days. Beyond 45 days, the regular interest rate applies.

How does the government handle GST return filing for different turnover ranges?

For businesses with a turnover up to ₹1.5 crore, GST returns are charged a lower late fee of ₹2000, and for turnover between ₹1.5 crore to ₹5 crore, the late fee increases to ₹5000. Businesses with turnover above ₹5 crore continue to face the regular late fee structure.

Is there any relaxation on GST filing fees for taxpayers with a nil tax liability?

Yes, taxpayers with a nil tax liability are eligible for a reduced late fee of ₹500 per return under the amnesty scheme, instead of the usual late fee that was previously ₹2000 per return.

What is the importance of the annual GST return filing and the requirements for larger businesses?

For businesses with a turnover above ₹5 crore, the annual GST return filing requires submitting an audited copy of the sales certificate. For businesses with turnover above ₹2 crore, submission of specific documents is optional but highly recommended.

What is the procedure for filing GST returns if the return is late?

If the return is filed late, taxpayers will incur a late fee as per their turnover and tax liabilities. The amnesty scheme offers reduced late fees for certain periods, and interest is charged based on the number of days the return is overdue.

What are the deadlines and penalties for GST filing for the months of March and April 2024?

The government has introduced a reduced interest rate for March and April 2024 returns. If filed within the first 15 days, no interest will be charged. After the first 15 days, a reduced interest rate of 9% applies for up to 45 days.

Can businesses with a turnover of more than ₹5 crore avail any relaxation under the new GST rules?

No, businesses with a turnover of more than ₹5 crore do not qualify for the relaxed late fees and interest rates. They are still subject to the standard late fee structure and interest rates on overdue payments.

What is the significance of the new GST filing rules for businesses in terms of compliance?

The new GST filing rules aim to make compliance easier for businesses, especially smaller ones, by reducing late fees and offering lower interest rates for delayed payments. This encourages timely filing and reduces financial burdens on taxpayers.