Recommendations of GST council related to Law &Procedure:
The GST Council has made the following recommendations on Law & Procedures changes:

1. Measures for Trade facilitation:
   a. Reduction in Late Fee for past Returns:
   As a measure to clean up pendency in return filing, late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced /waived as under: –
   i. ‘NIL’ late fee if there is no tax liability;
   ii. Maximum late fee capped at Rs. 500/- per return if there is any tax liability.
   The reduced rate of late fee would apply for all the GSTR-3B returns furnished between 01.07.2020 to 30.09.2020
   b. Further relief for small taxpayers for late filing of returns for February, March & April 2020 Tax periods:
   For small taxpayers (aggregate turnover uptoRs. 5 crore), for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered upto 6 July 2020) is reduced from 18% per annum to 9% per annum till 30.09.2020. In other words, for
   these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered upto 6 July 2020)and thereafter 9% interest will be charged till 30.09.2020.
   c. Relief for small taxpayers for subsequent tax periods (May, June & July 2020):
   In wake of COVID-19 pandemic, for taxpayers having aggregate turnover upto Rs. 5 crore, further relief provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).
   d. One time extension in period for seeking revocation of cancellation of registration:
   To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registrations have been cancelled till 12.06.2020.
2. Certain clauses of the Finance Act, 2020 amending CGST Act 2017 and IGST Act, 2017 to be brought into force from 30.06.2020.

Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/Notifications which alone shall have the force of law.

Note: It should be noted the rate of TCS shall be at normal rates(old rates) in the following situations:

• Where the sum is paid or payable to a non-resident person
• Where a resident person does not furnish his PAN or Aadhaar and the tax is deductible at a higher rate under Section 206AA or Section 206CC, as the case may be.

Note: It should be noted the rate of TDS shall be at normal rates(old rates) in the following situations:

• Where tax is deductible from salary or provident fund under Section 192 or Section 192A respectively.
• Where tax is deductible from any sum not being in the nature of payment for a contract, professional fees, interest, rent, dividend, commission, or brokerage. Thus, no concession in the rate of TDS from the sum payable in the nature of lottery income, consideration for the purchase of immovable property, etc.
• Where the sum is paid or payable to a non-resident person

Business/MSMEs have been badly hit due to Covid-19 need addition funding to meet operational liabilities built up, buy raw material and restart business, therefore, in this regard, the Govt. has proposed Rs. 3 lakh crores Collateral-free Automatic Loans for Business, including MSMEs. An emergency credit line has been allowed to business/MSMEs from banks and NBFCs up to 20% of their entire outstanding credit as on 29.2.2020.  In order to curb the marketing and liquidity problems, Govt. aims to promote e- market linkage for MSMEs which would act as a replacement for trade fairs and exhibitions. The Finance Minister also made major announcement that MSMEs receivable from Govt. and CPSEs shall be released in 45 days.  In order to protect the MSMEs from unfair competition from foreign companies, the Govt. has decided to take a major step towards Self-reliant India by disallowing Government procurement tenders up 200 crores for foreign Companies, this step would give major boost to medium enterprises in India which faces tough competition at hands of foreign players.

Eligibility: Borrowers having outstanding up to Rs. 25 Crores and turnover of Rs. 100 crores are eligible to take benefit.

Tenure: The tenure of the loan would be 4 years with moratorium of 12 months on Principal repayment.

100% credit guarantee: There will be 100% credit guarantee cover to Banks and NBFCs on principal and interest.

Validity: This scheme can be availed till Oct 31, 2020

No fresh collateral: It has been clearly specified that there would not be any guarantee fee or fresh collateral requirement for availing benefit under the scheme.

Sajan Bogawat & Associates is an independent chartered accountancy firm and business advisors based out of Pune. It offers a comprehensive range of accountancy and business advisory solutions which include Audit, Direct Taxation, Indirect Taxation and Financial, Legal and Advisory services. The Tax division specializes in Direct as well as Indirect Taxes namely Income Tax & GST. The Audit & Advisory division specializes in Tax Audits, Company Law , FEMA and Allied laws.