New Delhi: The government has issued several notifications in view of the challenges faced by taxpayers in meeting various statutory and regulatory compliance under the Goods and Services Tax (GST) Act due to the rising outbreak of the second wave of the Kovid-19 pandemic. All these notifications are dated May 1, 2021 and various relief measures have been taken for the taxpayers under them. These measures are explained in detail below:
Reduction in interest rate
Concessional rates of interest in lieu of the normal interest rate of 18% per annum for late payment of tax are specified in the following cases.
A. For registered persons with a total turnover of more than Rs. 5 crores: 15 before the last date of payment of tax for the tax periods of March 2021 and April 2021, which are payable in April 2021 and May 2021 respectively. A concessional interest rate of 9 per cent for the day and 18 per cent interest rate thereafter has been notified.
B. For registered persons with a total turnover of up to Rs. 5 crores: General taxpayers and taxpayers falling under the QRMP scheme for taxes payable for the tax periods of March 2021 and April 2021, payable in April 2021 and May 2021 respectively. For both, the zero interest rate has been notified for the first 15 days from the last date of payment of tax, the 9 percent interest rate for the next 15 days, and the 18 percent interest rate thereafter.
C. For registered persons opting to pay tax under the composition scheme: 15 days prior to the last date of tax payment for the tax payable for the quarter ending March 31, 2021, which was due in April 2021. Zero interest rate has been notified, 9 percent interest rate for next 15 days and 18 percent interest rate thereafter.
Waiver of late fee
A. For registered persons with a total turnover of more than Rs. 5 crores: Forms submitted in Form GSTR-3B after the last date for the tax periods of March 2021 and April 2021, which are payable in April 2021 and May 2021 respectively. The late fee in respect of returns is waived for 15 days.
B. For registered persons with a total turnover up to Rs. 5 crores: / and January for the tax periods of March 2021 and April 2021 (for taxpayers filing monthly returns), which are payable in April 2021 and May 2021 respectively. – Late charges in respect of returns submitted in Form GSTR-3B after the last date for the period of March 2021 (for taxpayers filing quarterly returns under the QRMP scheme), payable in April 2021. Has been forgiven for days.
Last date for filing GSTR-1, IFF, GSTR-4 and ITC-04 extended
a. The last date for filing Form GSTR-1 and IFF for the month of April (specified in May) has been extended by 15 days.
B. The last date for filing Form GSTR-4 for the financial year 2020-21 has been extended from April 30, 2021 to May 31, 2021.
C. The last date for filing Form ITC-04 for the quarter of January-March, 2021 has been extended from April 25, 2021 to May 31, 2021.
D. Some special amendments to CGST rules:
E. Exemption to avail ITC: Rule 36 (4) ie 105% limit on availing ITC in Form GSTR-3B, which will be applicable on cumulative basis for the period April and May 2021, will be taxed in May 2021. Will apply in returns for the period. Otherwise, Rule 36 (4) applies for each tax period.
F. The filing of GSTR-3B and GSTR-1 / IFF by companies using electronic verification codes has already been enabled for the period from 27.04.2021 to 31.05.2021.
G. Statutory time limit extended under Section 168A of CGST Act: The time limit for completion of various tasks by an officer or a person under the GST Act, which falls within the period from April 15, 2021 to May 30, 2021 , Has been extended to May 31, 2021. It also has some exceptions, as specified in the notification.