Covid-19 relief: GST Council eases compliance for small businesses

Compensation cess issue to be discussed in July meeting, Correction of inverted duty structure for textiles deferred

The Goods and Services Tax (GST) Council on Friday, in its first meeting after the lockdown was imposed, eased the compliance burden for small businesses by slashing late fees and halving the interest rate on them.

While GST rates were not discussed in the four-hour meeting via videoconferencing, correcting the inverted duty structure in the case of textiles was deliberated but a decision on it was held over. The issue of compensation to the states for their GST shortfall will be discussed in a meeting next month and in it market borrowing will be explored as an option.

In order