In wake of the Covid-19 pandemic, the Centre on Sunday announced various relief measures for taxpayers under the Goods and Services (GST) law. “In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances under GST law, due to the outbreak of the second wave of Covid-19 pandemic, the Centre has issued notifications, all dated 1 May 2021, providing various relief measures for taxpayers,” read the release by the Ministry of Finance. Reduction in rate of interest: Concessional rates of interest in lieu of the normal rate of interest of 18% per annum for delayed tax payments have been prescribed in the following cases.
For registered persons having aggregate turnover above Rs 5 crore: A lower rate of interest of 9% for the first 15 days from the due date of payment of tax and 18% thereafter, for the tax payable for tax periods March and April 2021, payable in April and May 2021 respectively, has been notified.
For registered persons having aggregate turnover up to Rs 5 crore: Nil rate of interest for the first 15 days from the due date of payment of tax, 9% for the next 15 days, and 18% thereafter, for both normal taxpayers and those under Quarterly Return, Monthly Payment of Taxes (QRMP) scheme, for the tax payable for the periods’ March and April 2021, payable in April and May 2021 respectively, has been notified.
For registered persons who have opted to pay tax under the Composition scheme: NIL rate of interest for first 15 days from the due date of payment of tax and 9% for the next 15 days, and 18% thereafter has been notified for the tax payable for the quarter ending 31 March 2021, payable in April 2021. “Waiver of late fee” is also one exemption.
For registered persons having aggregate turnover above Rs 5 crore: Late fee waived for 15 days in respect of returns in FORM GSTR-3B furnished beyond the due date for tax periods March and April 2021, due in April and May 2021 respectively.
For registered persons having aggregate turnover up to Rs 5 crore: Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March and April 2021 (for taxpayers filing monthly returns) due in April and May 2021 respectively / and for period January to March 2021 (for taxpayers filing quarterly returns under QRMP scheme) due in April 2021.
“Extension of the due date of filing GSTR-1, IFF, GSTR-4 and ITC-04” is another exemption in the list. The due date of filing FORM GSTR-1 and IFF for April (due in May) has been extended by 15 days. The due date of filing FORM GSTR-4 for FY 2020-21 has been extended from 30 April to 31 May 2021. The due date of furnishing FORM ITC-04 for the January to March 2021 quarter has been extended from 25 April to 31 May 2021.
Certain amendments in CGST Rules: Relaxation in availing of ITC: Rule 36(4) that is 105% cap on the availment of ITC in FORM GSTR-3B to be applicable on a cumulative basis for the period April and May 2021, to be applied in the return for tax period May 2021. Otherwise, rule 36(4) is applicable for each tax period.
The filing of GSTR-3B and GSTR-1/ IFF by companies using electronic verification code has already been enabled for the period from 27 April to 31 May 2021.
Extension in statutory time limits under section 168A of the Central Goods and Services Tax (CGST) Act: Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15 April to 30 May 2021, has been extended up to 31 May 2021, subject to some exceptions as specified in the notification.
WITH ANI INPUTS
