Recommendations of 43rd GST Council meeting Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns; Late fee also rationalised for future tax periods

I. Amnesty Scheme of reduced/waived late fee for those who didn’t file GSTR-3B returns for the tax periods July, 2017 to April, 2021, if said GSTR-3B returns for the said tax periods are filed between 01.06.2021 and 31.08.2021:

(a) Late fee capped at Rs.500/- per return (Rs.250/- each for CGST & SGST), who didn’t have tax liability for the tax periods.

(b) Late fee capped at Rs.1,000/- per return (Rs.500/- each for CGST & SGST), for other tax payers.

II. Reliefs provided in interest payments, in addition to relief provided vide Notifications dated 01.05.2021:

Aggregate Annual Turnover (AATO) in the preceding financial year Tax period Relief provided for the period Rate of Interest
Small tax payers with aggregate turnover up to Rs.5 Cr

 

March, 2021 Rate of Interest for 15 days from the due date for filing GSTR-3B or filing PMT-06 Challan  

NIL

Rate of Interest for further 45 days 9%
For the further period Full rate of 18%
April, 2021 Rate of Interest for 15 days from the due date for filing GSTR-3B or filing PMT-06 Challan Nil
Rate of Interest for further 30 days 9%
For the further period Full rate of 18%
May, 2021 Rate of Interest for 15 days from the due date for filing GSTR-3B or filing PMT-06 Challan Nil
Rate of Interest for further 15 days 9%
For the further period Full rate of 18%
For large taxpayers with aggregate turn- over of more than Rs. 5 crore May, 2021 Rate of Interest for 15 days from the due date for filing GSTR-3B 9%
For the further period 18%
Composition dealers QE March, 2021 Rate of Interest for 15 days from the due date for furnishing CMP-08 or filing PMT-06 Challan Nil
Rate of Interest for further 45 days 9%
For the further period Full rate of 18%

III. Reliefs provided in waiver of late fee in addition to relief provided vide Notifications dated 01.05.2021: 

Aggregate Annual Turnover (AATO) in the preceding financial year Tax period Relief provided by way of waiver of late fee for the period Late Fee
Small tax payers with aggregate turnover up to Rs.5 Cr

 

March, 2021 &

QE Mar, 2021

Delay in furnishing return in Form GSTR-3B for 60 days from the due date for furnishing said return Nil
April, 2021 Delay in furnishing return in Form GSTR-3B for 45 days from the due date for furnishing said return. Nil
Small tax payers with aggregate turnover up to Rs.5 Cr

 

May, 2021 Delay in furnishing return in Form GSTR-3B for 30 days from the due date for furnishing said return NIL
For large taxpayers with aggregate turn- over of more than Rs. 5 crore May, 2021 Delay in furnishing return in Form GSTR-3B for 15 days from the due date for furnishing said return NIL

IV. Other relaxations provided in filing GSTR-1, GSTR-4, ITC-04 and other benefits:

Sl No. Relief Provided
1. Extension of Due date for filing GSTR-1/IFF for the month of May, 2015 by 15 days.
2. Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
3. Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
4. Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021
5. Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.

V. Rationalization of late fee imposed under section 47 of the CGST Act:

V.A Rationalisation of late fee (Applicable to GTR-1 and GSTR-3B returns of future tax periods):

Sl.No Aggregate Annual Turnover (AATO) in the preceding financial year Type of Tax payers  Late Fee capped at Rs. per return
1 Irrespective Turnover Tax payer having NIL tax liability in GSTR-3B or Nil Outward supplies in GSTR-1 Late fee capped at Rs.500/- (Rs.250/- each for CGST & SGST) per return
2 AATO up to 1.5 Cr Having Tax liability and outward taxable supplies Late fee capped at Rs.2000/- (Rs.1000/- each for CGST & SGST) per return
3 AATO between Rs.1.5 Cr to Rs.5 Cr Tax liability and outward taxable supplies Late fee capped at Rs.5,000/- (Rs.2,500/- each for CGST & SGST) per return
AATO above Rs.5 Cr Tax liability and outward taxable supplies Late fee capped at Rs.10,000/- (Rs.5,000/- each for CGST & SGST) per return

V.B Late fee for delayed furnishing of GTR-4 (Composition scheme) tax payer returns of future tax periods):

(i) If the tax liability is NIL in the return, the late fee capped at Rs.500/- per return (Rs.250/- each for CGST & SGST).

(ii) For Others, the late fee capped at Rs.2,000/- per return (Rs.1,000/- each for CGST & SGST).

V.C Late fee for delayed furnishing of GTR-7 to be reduced to Rs.50/- per day with a cap of Rs.2,000/- per return (Rs.1,000/- each for CGST & SGST) Applicable for future tax periods.

VI. Relaxations under section 168A of the 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 15thApril, 2021 to 29th June, 2021, to be extended up to 30th June, 2021, subject to some exceptions. [Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply]

VII. Simplification of Annual Return for F Y 2020-21

VII.A The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover up to Rs.2 Crore;

VII.B The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with annual aggregate turnover above Rs.5 Crore.

VII.C Filing of reconciliation statement in FORM GSTR-9C: The tax payer has to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21.

VIII. Other Measures

VIII.A GST Council recommended amendments in certain provisions of the Act so as to make the present system of GSTR-1/3B return filing as the default return filing system in GST.

VIII.B Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on net cash basis, to be notified at the earliest.

Note: The gist of recommendations of the GST council in respect of GST returns is only given above. The copy of the Press Release may be seen for original text.

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