For entities with tax liability but which have not filed returns or have filed returns late, the late fee has been capped at Rs 500 without interest. Interest will, however, be payable on the tax component at the applicable rate for delays, she added.
In a relief to the small taxpayers with turnover up to Rs 5 crore, the council halved the interest on delayed filing of GST
returns for February, March and April to 9 per cent, provided the returns are filed by September 2020.
Also, the deadline for filing returns for May, June and July has been extended till September, without any interest or late fee, Sitharaman said.
Council - the apex decision making body of the indirect tax regime - also discussed the impact of Covid-19, she said.
Inverted duty structure hitting GST collections was discussed, she said, adding the panel was looking at correction of duty inversion in footwear, fertiliser and textiles.
Sitharaman said that the council will meet again in July to discuss the compensation cess to the states, wherein the council members would discuss whether additional borrowings will have to be done for the same.