Page 49 - GSTL_11th June 2020_Vol 37_Part 2

2020 ] NEWS DESK J57
al turnover of at least ` 5 crore can pay taxes till May 5 for March without any
interest cost. However, if it is paid after this date and by June 30, an additional 9
per cent interest rate will be levied. This interest rate is half of the current rate of
18 per cent a year.
[Source : Business Standard, New Delhi, dated 31-5-2020]

GST Council may provide relief to trade on issue of late fee

In what may bring further relief to businesses impacted by COVID-19
pandemic, the GST Council has agreed to discuss the issue of late fee over de-
layed filing of returns at its next meeting slated later this month.
Businesses have sought a waiver from payment of late fee on GST re-
turns filed for the earlier period between August, 2017 (start of GST) and Janu-
ary, 2020. This, they have said, was important considering the current business
environment where most of the trade is losing money and do not have enough
resources to even pay the taxes.
It may be noted that for helping the small businesses having turnover
less than ` 5 crore in the current situation arising out of COVID-19, Finance Min-
ister Nirmala Sitharaman had already announced extension of GST returns of
February, March, April and May, 2020 till June, 2020. No late fee will be charged
for this period.
“While the extension for filing GST returns is welcome, Government
should also waive late fee for past delays to help the businesses facing acute li-
quidity problems,” said a Delhi based trader asking not to be named.
Sources in the Finance Ministry said that the late fee is imposed to ensure
that the taxpayers file returns (GSTR-3B) in time and pay taxes on the amount
collected from buyers and due to the Government. This is a step to ensure that a
certain discipline is maintained regarding compliance. Honest and compliant
taxpayers would be discriminated negatively in the absence of such a provision.
“In GST, all decisions are taken by the Centre and the States with the ap-
proval of the GST Council. It would not be possible or desirable for the Central
Government to unilaterally take a view on this issue and therefore, the trade is
informed that the issue of late fee would be taken up for discussion in the next
GST Council meeting,” said the source.
[Source : The Pioneer, New Delhi, dated 3-6-2020]

GSTN enables registration functionality for companies
under IBC
The Goods and Services Tax Network (GSTN) on 31-5-2020 announced a
new registration functionality for erstwhile registered entities who are now cor-
porate debtors under the provisions of the Insolvency and Bankruptcy Code
(IBC), 2016.
GSTN is the information technology backbone for the Indirect Tax sys-
tem.
This new facility will benefit the companies which are undergoing the
corporate insolvency resolution process and those whose management affairs are

GST LAW TIMES  11th June 2020  49