In the ongoing pandemic situations, oxygen and medical facilities are not the only concerns for the people but they are also wriggling with the various tax compliances, failing which will attract interest and penalty. To resolve this issues various representations have been made before the government, requesting extensions of due dates. Consequently, government has acted on those representations and extended the time limit for various compliances. The Central Government vide Notification No. 12/2021 – Central Tax dt. 01.05.2021 extended time limit for FORM GSTR-1 for the tax period April, 2021, till 26th May, 2021. Further, Notification No. 8/2021-Central Tax and Notification No. 9/2021-Central Tax both dt. 01.05.2021 are issued to provide relaxations with respect to interest and late fees, respectively. The tabular summary of the said notifications has been mentioned hereinbelow:
| Registered Person Having the Turnover in the Preceding Financial Year |
Tax Period | Effective Interest Rate | Period for which late fee is waived |
| More than Rs. 5 crores | March, 2021 and April, 2021 | 9% for the first 15 days from the due date and 18% thereafter. | 15 days from the due date. |
| Up to Rs. 5 crores (Monthly return as specified under sub-section (1) of section 39) | March, 2021 and April, 2021 | Nil for the first 15 days from the due date, 9% for the next 15 days, and 18% thereafter. | 30 days from the due date. |
| Up to Rs. 5 crores (Quarterly return as specified under proviso to sub-section (1) of section 39) | March, 2021, April, 2021 (For interest) January-March, 2021 (For late fees) |
Nil for the first 15 days from the due date, 9% for the next 15 days, and 18% thereafter. |
30 days from the due date. |
| Composite Taxpayers | Quarter ending March, 2021 | – |
Furthermore, the time limit for ITC-04 for January-March, 2021 has been extended up to 31.05.2021 vide Notification No. 11/2021 – Central Tax dt. 01.05.2021.
Extended Limitation
In addition to the above, the various limitations have also been extended up to 31.05.2021 vide Notification No. Notification No. 14/2021 – Central Tax dt. 01.05.2021 (“Notification No. 14” for short) whose due date of action is falling during the period 15.04.2021 to the 30.04.2021 and where completion or compliance of such action has not been made within such time. The summary of such limitations is as follows:
- Completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action by any authority, commission or tribunal.
- Filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record.
However, the aforesaid extensions are not applicable in the following cases:
(a) Time of Supply of Goods and Services or both
(b) Lapsing of option of Composition Levy
(c) Registration provision u/s 25 and 27 of the CGST Act, 2017
(d) Provision with respect to invoicing u/s 31 of the CGST Act, 2017
(e) Statement of Outward Supply u/s 37 of the CGST Act, 2017
(f) TDS, ISD and Non resident Taxable person Returns u/s 39 (3), (4) & (5) of the CGST Act, 2017, respectively.
(g) Late fees and interest provision u/s 47 and 50 of the CGST Act, 2017, respectively
(h) Inspection of Goods in Movement u/s 68 of the CGST Act, 2017, to the extent E-Way bill is concerned.
(i) Provisions for Power to arrest u/s 69 of the CGST Act, 2017.
(j) Liability of partners of firm to pay tax u/s 90 of the CGST Act, 2017.
(k) Penalty u/s 122 and Detention, Seizure and Release of Conveyance u/s 129 of the CGST Act, 2017.
Extension for Registration Provisions
The Central Government vide the Notification No. 14 has also extended the time limit for action to be taken for the verification and approval of registration application under rule 9 of the CGST Rules, 2017, which were falling during the period 01.05.2021 to 31.05.2021. The time limit for the same has now been extended up to 15.06.2021.
Extension for Refund Provisions
In cases where a notice has been issued for rejection of refund claim and the time limit for issuance of order u/s 54(5), read with sub-section 54(7) of the CGST Act falls during the period 01.05.2021 to the 31.05.2021, the time limit for issuance of the said order shall be extended to fifteen days after the receipt of reply to the notice from the registered person or the 31st day of May, 2021, whichever is later.
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Written by: CA Palash Sharma, M/s Palash Sharma & Associates
For any queries, kindly contact at: 9782115992, psassociate8@gmail.com
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