prpri COVID Relief Measures in GST Compliance COVID Relief Measures in GST Compliance

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, the Government has issued notifications, dated 1st May, 2021, and 1st June, 2021 providing various relief measures for taxpayers. These measures are as follows:

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 per cent for the first 15 days from the due date of payment of tax and 18 per cent thereafter, for the tax payable for tax periods March 2021, April 2021 and May 2021 payable in April 2021, May 2021 and June 2021 respectively, has been provided.

For registered persons having aggregate turnover upto Rs. 5 Crore (for both normal taxpayers and those under QRMP scheme):

i. Nil rate of interest for the first 15 days from the due date of payment of tax, 9 per cent for the next 45 days, and 18 per cent thereafter, for the tax payable for the period March 2021 has been provided.

ii. Nil rate of interest for the first 15 days from the due date of payment of tax, 9 per cent for the next 30 days, and 18 per cent thereafter, for the tax payable for the period April 2021 has been provided.

iii. Nil rate of interest for the first 15 days from the due date of payment of tax, 9 per cent for the next 15 days, and 18 per cent thereafter, for the tax payable for the period May 2021 has been provided.

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 per cent for the next 15 days, and 18 per cent thereafter, has been provided for the tax payable for the quarter ending 31st March, 2021.

Waiver of late fee

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, 2021, April, 2021 and May 2021, due in the April 2021, May 2021 and June 2021 respectively;

For registered persons having aggregate turnover upto Rs. 5 Crore: Late fee waived for 60 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March, 2021 (for taxpayers filing monthly returns) due in April 2021.

Late fee waived for 45 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March, 2021 (for taxpayers filing monthly returns) due in April 2021.

Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March, 2021 (for taxpayers filing monthly returns) due in April 2021.

For registered persons filing FORM GSTR 3B on quarterly basis, Late fee waived for 60 days beyond the due date for period Jan-March, 2021.

Extension of due date of filing GSTR-1, IFF, GSTR-4 and ITC-04

Due date of filing FORM GSTR-1 and IFF for the month of April 2021 and May 2021 has been extended by 15 days.

Due date of filing FORM GSTR-4 for FY 2020-21 has been extended from 30th April, 2021 to 31st July, 2021.

Due date of furnishing FORM ITC-04 for Jan-March, 2021 quarter has been extended from 25th April, 2021 to 30th June, 2021.

Other relaxations

Relaxation in availment of ITC: Rule 36(4) i.e. 105% cap on availment of ITC in FORM GSTR-3B to be applicable on cumulative basis for period April, May and June, 2021 to be applied in the return for tax period June, 2021 or the quarter ending in June, 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 (EVC), instead of Digital Signature Certificate (DSC), has been enabled for the period from the 27.04.2021 to 31.08.2021.

Extension in statutory time limits 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 15th April, 2021 to 29th June, 2021, has been extended upto 30th June, 2021, subject to some exceptions as specified in the notification.

Source- Tweets from All India Radio News

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