New Delhi, Jun 12 (KNN) Union Finance Minister Nirmala Sitharaman on Friday decided to reduce 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.

Sitharaman said that the council will meet again next month 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.

Sitharaman also said that the council discussed Inverted duty structure hitting GST collections and inverted duty structure in textile.