GSTR-3B Return related measures
Quarterly return monthly payment (QRMP) scheme
> To reduce compliance burden of the smaller taxpayers having aggregate turnover upto Rs. 5 Crore, Quarterly Return and Monthly Payment (QRMP) Scheme has been introduced w.e.f. 01.01.2021, wherein the taxpayers can file their return in FORM GSTR-3B as well as outward supply statement in FORM GSTR-1 on quarterly basis, while they are required to pay tax on monthly basis.
> The taxpayers opting for this scheme would be required to file 8 returns in a year (2 re-turns per quarter i.e., 4-GSTR-1s & 4-GSTR-3Bs) instead of 24 returns (2 returns every month i.e. 12-GSTR-1s & 12-GSTR-3Bs).
> Taxpayers under this scheme have been given an option to pay monthly tax during first two months of the quarter in an easier manner through a system generated challan, in-stead of calculating their actual tax liability.
> Taxpayers can also been given an optional Invoice Furnishing Facility (IFF), through which they can furnish requisite B2B invoices during first two months of the quarter, at their option, so as to facilitate their buyers in availing input tax credit on the same.
> About 90% of the taxpayers under GST are eligible to avail benefit of this scheme
GSTR-3B Return related measures
Nil filing of returns through SMS
> The Government has introduced a facility of Nil filing of GSTR-3B returns by SMS w.e.f. 08.06.2020 thereby reducing the compliance burden of the taxpayers who do not make any inward or outward supply during a month.
> About 22 lakh taxpayers can be benefitted by this facility.
> The said facility was extended for filing of statement of outward supplies in FORM GSTR-1 from July 2020 onwards.
Auto-drafted input tax credit statement in FORM GSTR-2B
> An auto-drafted static input tax credit statement in FORM GSTR-2B is being made avail-able to the taxpayers w.e.f. August 2020 on the portal containing the details regarding ITC available based on B2B supplies received from other persons, imports, ISD and RCM supplies, as declared during 13th of the previous month to 12th of the current month.
> This would help taxpayers in determining and self-assessing their available input tax credit and substantially reducing time taken to file their returns.
GSTR-3B Return related measures
Auto-population of GSTR-3B return
> GSTR-3B returns are being auto-populated on the portal w.e.f. 12.12.2020 from the details given by the taxpayers in their FORM GSTR-1 and from the details given by their suppliers in their FORM GSTR-1, as made available to the taxpayer in his FORM GSTR-2B.
> An editing facility is also provided to the taxpayers, enabling them to make the correc-tions/ amendments in the auto-populated return, if required.
> This has made the return filing process easier and has reduced the compliance burden on the taxpayer, both in in terms of cost and time.
Annual Return related measures
> Requirement of furnishing annual return in FORM GSTR-9 has been kept optional for the taxpayers with annual turnover upto Rs. 2 crores for financial year 2020-21.
> Requirement of furnishing reconciliation statement in FORM GSTR-9C has been waived for the taxpayers with annual turnover upto Rs. 5 crores for FY 2020-21
> Amendment in CGST Act, 2017 has been made through Finance Act, 2021 to provide for self-certification of reconciliation statement in FORM GSTR-9C, instead of previ-ous requirement of certification of such statement by a Chartered Accountant/ Cost Accountant. This amendment will be applicable for the Annual return for the FY 2020-21.
Measures related to e-invoicing
> E-invoicing facility has been introduced for B2B supplies w.e.f. 01.10.2020 for the tax-payers having annual aggregate turnover of Rs. 500 crores or more in any of the pre-ceding financial years.
> The threshold limit for generating e-invoice has been brought down to Rs. 100 crores w.e.f. 01.01.2021 and to Rs. 50 crores w.e.f. 01.04.2021.
> FORM GSTR-1 of the taxpayer is being auto-populated on the portal from e-invoice data. Besides, Part-A of e-way bill is also auto-populated from the e-invoice data. This has significantly reduced time and cost for filing of GSTR-01 and for generation of e-way bills.
Refund related measures
Facility for withdrawal of the refund claims
> A facility for withdrawal of the refund claims has been provided by amendment in the CGST Rules, 2017 and providing a new FORM GST RFD-01W for making such applications for withdrawal of refund claims on the portal.
> It will help the taxpayers, who have filed the refund application by mistake or for wrong period or have made any mistake/ omission in the refund claim, to withdraw the refund application rather than to file appeal, once the refund claim is rejected.
Exclusion of time taken for issuance of deficiency memo for calculating limitation period for filing a fresh refund application after removing deficiencies
> The CGST Rules, 2017 have been amended to provide for exclusion of the time period from the date of filing of refund application in FORM GST RFD-01 till the date of issuance of Deficiency Memo (DM) in FORM GST RFD-03, for the purpose of computation of time, within which the refund claim can be filed, i.e. for limitation of time in respect of such fresh refund claim filed after rectification of deficiencies.
> This will help taxpayers in filing such fresh refund claims after removing deficiencies, without getting time barred due to time taken for issuance of deficiencies by the tax officers.
Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns
> To provide relief to the taxpayers, especially smaller taxpayers, from high amount of late fee accumulated on pending GSTR-3B returns, a late fee amnesty scheme has been brought out in respect of pending returns in FORM GSTR-3B for the tax periods from July, 2017 to April, 2021.
> Late fee has been reduced / waived in respect of pending returns in FORM GSTR3B for the tax periods from July, 2017 to April, 2021 as under: –
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- 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;
- late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers;
> The reduced rate of late fee would be conditional and apply only if GSTR-3B returns for these tax periods are furnished during the period between 01.06.2021 to 31.08.2021
Rationalization of late fee imposed under section 47 of the CGST Act:
> To reduce burden of late fee on smaller taxpayers, late fee structure has been rationalized by aligning the upper cap of late fee with tax liability/ turnover of the taxpayers, as follows:
> The late fee for delay in furnishing of FORM GSTR-38 and FORM GSTR1 has been capped, per return, as below:
a. For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee has been capped at Rs 500 (Rs 250 CGST + Rs 250 SGST) per return
b. For other taxpayers:
1) For taxpayers having Annual Aggregate Turnover (AATO) in preceding year upto Rs 1.5 crore, late fee has been capped to a maximum of Rs 2000 (1000 CGST+1000 SGST) per return;
2) For taxpayers having AATO in preceding year between Rs 1.5 crore to Rs 5 crore, late fee has been capped to a maximum of Rs 5000 (2500 CGST+2500 SGST) per return;
3) For taxpayers having AATO in preceding year above Rs 5 crores, late fee has been capped to a maximum of Rs 10000 (5000 CGST+5000 SGST) per return.
Rationalization of late fee imposed under section 47 of the CGST Act:
> The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers has been capped to Rs SOO (Rs 250 CGST + Rs 250 SGST) per return, if tax liability is nil in the return, and Rs 2000 (Rs 1000 CGST + Rs 1000 SGST) per return for others.
> Late fee payable for delayed furnishing of FORM GSTR-7 has been reduced to Rs.50/- ‘ >n per day (Rs. 25 CGST + Rs 25 SGST) and has been capped to a maximum of Rs 2000/-(Rs. 1,000 COST + Rs 1,000 SGST) per return.
> The above renationalization of late fee will be applicable for prospective tax periods from June 2021 onwards.
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 in Year 2021, the Government has provided various relief measures for taxpayers. These measures are enclosed as Annexure-A.
Retrospective amendment of section 50 to provide interest payment on net cash basis
> Retrospective amendment has been made in Section 50 of CGST Act, 2017, with effect from 01.07.2017 to provide for payment of interest on the delayed payment of tax on net cash basis.
> This will facilitate the taxpayers and help in removing ambiguity and disputes regarding payment of interest on gross tax basis or net cash basis.
Source- Tweets by All India Radio News (@airnewsalerts)
