Haryana Deputy Chief Minister Dushyant Chautala has asked the GST Council to lower the rates on textiles, fertilizers and footwear.
He also sought extension of the deadline for filing of tax for those paying GST of less than Rs 5 crore in the wake of the unprecedented situation arising because of COVID-19 pandemic.
“Haryana has demanded from the Union government not to increase the tax on textiles, fertilizers and footwear. Same demand was also endorsed by Gujarat and Bihar,” Chautala told media after taking part in the 40th meeting of the GST Council in New Delhi.
Chautala also asserted that in order to increase the State and Central revenues, the government should remove the penalty on those who failed to file the return in the last three years. Besides the June deadline of filing tax for those paying GST less than Rs 5 crore must be extended to September 2020.
”The union government should give cess amount to states as financial assistance in this hour of crisis,” he said.
He informed that in 2017, Rs 1.76 lakh crore was collected in this pool and while Rs 34,000 crore was distributed to states, an amount of Rs 54,600 crore of states is pending with the union government.
Union Finance Minister Nirmala Sitharaman on Friday reduced the late fee on the filing of GSTR-3B returns for the period between July 2017 and January 2020.
The late fee has been capped at Rs 500, but interest will be charged at the existing rate on the due tax liability.
The decision was made at a GST Council – the apex decision making body of the indirect tax regime – meeting convened to seize the impact of COVID-19.
Addressing media persons, after the GST Council meeting through video conference, Union Finance Minister Nirmala Sitharaman said that those entities with no tax liability will not have to submit the late fee for the period.
”No late fees to be levied on registered entities with zero GST liabilities who have not filed returns between July 2017 and January 2020 while maximum late fee for non-filing of monthly GST sales return by other entities for July 2017 to January 2020 capped at Rs 500,” she said.