Relaxations in GST Compliance during second wave of Covid 19

Relaxations in GST Compliance during second wave of Covid 19

(Notifications No. 08 to 14/2021 all dated 1st May 2021;Notification No. 01/2021 – Integrated Tax dated 1st May 2021)

Rate of interest for late payment

♦ Notification No. 08/2021- Central Tax dated 1st May, 2021

• Rate of interest for late payment of taxes with returns for March 2021 and April2021:
  • Tax payers having Turnover more than Rs. 5 Cr. in preceding F.Y. 9% for first 15 days and 18% thereafter.
  • Taxpayer having Turnover less than Rs.5 Cr. In preceding F.Y. (This includes quarterly filers and composition tax payers for quarter ending March,2021- Nil for the first 15 days from the due date, 9 per cent for the next 15 days, and 18 per cent thereafter

Late fees for filing returns

♦ Notification No. 09/2021- Central Tax dated 1st May, 2021

• Waiver of Late fees for filing return:
• Tax payers having turnover more than Rs 5 Cr. in preceding F.Y
  • March, 2021 and April, 2021 waiver of late fees for 15 days from the due date of furnishing return
• Taxpayer having Turnover less than Rs 5 Cr. in preceding F.Y.
  • Monthly return filers; March 2021 and April 2021- Waiver of late fees for 30 days from due date of furnishing return
  • Quarterly return filers; January 2021 to March 2021 – Waiver of late fees for 30 days from due date of furnishing return

Composition Taxpayers

♦ Notification No. 10/2021- Central Tax dated 1st May, 2021

• The due date for furnishing return in Form GSTR-4 by Composition taxpayers for F.Y. 2020-21 has been extended from 30/04/2021 to 31/05/2021.

♦ Notification No. 13/2021- Central Tax dated 1st May, 2021

• Due date for furnishing details of out ward supplies (using IFF) by quarterly return filers(QRMP) for the month of April-2021 which was 13/05/2021 has been extended to 28/05/2021 for the month of April-21.

Job workers

♦ Notification No. 11/2021- Central Tax dated 1st May 2021

• The due date for furnishing quarterly details of challans in respect of goods dispatched to a job worker or received from a job worker in FORM GST ITC-04 for January 2021 to March 2021 has been extended from 25th April 2021 to 31st May 2021.

Statement of outward supplies in Form GSTR-1

♦ Notification No. 12/2021- Central Tax dated 1st May, 2021

• The time limit for furnishing the details of outward supplies in FORM GSTR-1 for April, 2021 extended till the 26 May 2021

♦ Notification No. 13/2021- Central Tax dated 1st May, 2021

• Due date for furnishing details of out ward supplies (using IFF) by quarterly return filers (QRMP) for the month of April, 2021 which was 13th May 2021 has been extended to 28th May 2021 for the month of April, 2021.

Restriction on ITC under rule 36(4)

♦ Notification No. 13/2021- Central Tax dated 1st May, 2021

• Restriction on ITC under rule 36(4) relaxed to calculate the same cumulatively for April, 2021 and May, 2021
• Restriction on availing input tax credit u/r 36(4) of CGST Rules that the ITC in GSTR 3B should not exceed more than 5% of the total amount of ITC as per GSTR 2A in one return period has been relaxed for return of April, 2021 to calculate the same cumulatively for April, 2021 and May, 2021 at the time of filing return for May, 2021. This means the said restriction on claiming ITC has to be calculated cumulatively for April, 2021 and May, 2021 at the time of filing return for May, 2021.

Limitation period ending on any date between 15th April 2021 to 30th May 2021

♦ Notification No. 14/2021- Central Tax dated 1st May, 2021

• Limitation period ending on any date between 15th April to 30th May 2021 has been extended till 31st May 2021. Time limit for completion or compliance of any action by any officer
  or any person which falls during the this period extended till 31/05/2021. The said compliances shall include fallowing:
  • Completion of any proceeding or passing of any order or issuance of any notice, intimation
  • Filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other

• The above extension of limitation shall not be applicable for following provisions:
  • Chapter – IV of the CGST Act i.e. provisions of Time of supply and value of supply
  • Section 10(3) which specifies that composition shall lapse once registered person exceeds prescribed turnover for eligibility of composition scheme
  • Section 25 – limitation period for registration under GST Laws.
  • Section 27 – Limitation periods applicable for casual taxable person and non-resident taxable person.
  • Section 37 – Furnishing of outward supplies in form GSTR1.
  • Section 47 – Levy of late fees
  • Section 50 – Interest on late payment of taxes
  • Section 69 – Power of arrest
  • Section 90 – Liability of partners of firm to pay tax.
  • Section 122 – Penalty for certain offences
  • Section 129 – Detention search and seizer
  • Section 39 – Returns in form GSTR3B
  • Section 68 – E-way bill.