Highlights of recent Relaxation in Late Fees & Interest under GST

GOVERNMENT OF INDIA
Ministry of Finance
Department of Revenue

HELLO DEAR TAXPAYER!

Hope you are safe and doing well during these difficult times. In its pursuit of supporting you tide the challenges posed by the pandemic, the Department of Revenue has taken several relief measures.

Here are some important information:

• A conditional late fee amnesty scheme brought out in respect of pending returns in FORM GSTR-3B for the tax periods from July, 2017 to April, 2021.

HIGHLIGHTS OF THE SCHEME: –

a. Applicable only if GSTR-3B returns for these tax periods are furnished during the period between 01.06.2021 to 31.08.2021;

b. Late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;

c. Late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers.

• Relaxation in ITC availment under Rule 36(4) – i.e. 105% cap on availing ITC in FORM GSTR-3B – for the months of April, May and June 2021. It shall apply cumulatively for the three months in the month of June GSTR 3B.
• Filing of GSTR-3B and GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature Certificate (DSC), now enabled for the period from the 04.2021 to 31.08.2021.
• 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 provided for the months of March, April and May, 2021.

HIGHLIGHTS: –

a. Taxpayer having aggregate more than 5 crore if files GSTR-3B for the period May’21 within 15 days of due date i.e., till 4th July, the interest on cash liability to be charged @9% p.a. Interest to be charged @18% p.a., if filed thereafter.

b. Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period April’21 within 30 days of due date i.e., till 19th June, the interest on cash liability to be charged @9% p.a. Interest to be charged @18% p.a., if filed thereafter.

c. Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period May’21 within 15 days of due date i.e., till 4th July, the interest on cash liability to be charged would be NIL, @9% p.a. if filed till 19^th July and @18% p.a. if filed thereafter.

• Waiver of late fee: Late fee waived for specified number of days in respect of returns in FORM GSTR-3B furnished beyond the due date for tax periods March, April and May 2021, due in the April, May and June 2021 respectively.

HIGHLIGHTS: –

a. Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period March’21 within 60 days of due date i.e., till 19th June, the Late fee would be NIL.

b. Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period April’21 within 45 days of due date i.e., till 4^th July, the Late fee would be NIL.

c. Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period May’21 within 30 days of due date i.e., till 19^th July, the Late fee would be NIL.

FILING YOUR TAX RETURN IS A VITAL STEP THAT HELPS OUR GREAT COUNTRY IN MANY WAYS.