Key Expectations from 40th GST Council Meeting June 2020
- Blog|GST & Customs|
- 506 Views
- 2 Min Read
- By Taxmann
- Last Updated on 8 April, 2021
The 40th GST Council Meeting is going to be held on June 12, 2020 via video conferencing. The outbreak of COVID-19 pandemic has affected the businesses as well as the revenue collection of the Govt. under GST. It is the high time, the GST Council should take concrete measures to strengthen the industry and provide appropriate relief to taxpayers by easing the tax burden. Read to the key Expectations from 40th GST Council Meeting June 2020.
Key Expectations from 40th GST Council Meeting 2020
Waiver of Late Fee on GSTR-3B
The press release dated June 1, 2020 issued by Ministry of Finance stated that the govt. had been receiving numerous requests for waiver of late fee on GSTR-3B pertaining to the period August, 2017 to January, 2020. It was also stated in the press release that all the decisions are taken by the Centre and the State with the approval of the GST Council. Hence, it would not be possible for the Central Government to unilaterally take a view on this issue. Accordingly, trade was informed that the issue of late fee would be taken up for discussion in the next GST Council meeting.
As per Notification No. 32/2020-Central Tax, dated 03-04-2020, late fee was already waived off for all taxpayers for the months of February, March and April only, if the return in form GSTR-3B is furnished as per the separate dates prescribed therein on the basis of turnover. Therefore, the GST Council should consider the waiver request in order to provide relief to the taxpayers.
No increase in GST Rates of non-essential items
Recently, it was in the news that GST rates of non-essential items will be increased amid the crisis caused by coronavirus to fill in the gap of falling revenue collection. However, increasing the GST rates of non-essential items would cause inflation, leading to decrease in demand and increase in tax burden on businesses. In order to revive the growth of overall economy, demand needs to be created which would be difficult to achieve when GST rates of non-essential items are raised.
No Calamity Cess
It is also speculated that the Centre will levy calamity cess under GST to tide over the financial crisis triggered due the COVID-19 pandemic. As per the Constitution of India, the GST Council can make recommendation to the Union and the State for any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster.
Last year, Kerala had also levied flood cess to recover the loss caused by floods in 2018 in the State of Kerala. It can be inferred that implementing calamity cess is legally valid. However, considering the current scenario, introducing a calamity cess would have a negative impact on the economy. Thus, implementing cess would lead to rise in prices of goods and further hamper the already low sales.
It is hoped that whatever decision GST Council takes in the upcoming meeting should be in the favour of taxpayers and should not unnecessarily increase their hardship under GST.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied