All you need to Know about GST Compliance Relief Measures and Clarifications

All you need to Know about GST Compliance Relief Measures and Clarifications

COVID-19 Relief- All you need to Know - GST Compliance Relief Measures - Clarifications - Taxscan

In wake of COVID-19 pandemic, the government has announced various relief measures for taxpayers under Goods and Services (GST) law.

1. Relaxation in GST interest rate for March & April 2021

The CBIC vide Notification No. 08/2021- Central Tax dated 1st May, 2021 provides Relaxation in the interest rate based on Turnover to those who have to file GSTR 3B and also to Composition dealers. Relaxation is for Tax Period ending on 31st March 2021 and for 30th April 2021.

For registered persons having aggregate turnover above Rs 5 crore in 2020-21: 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 and April 2021, payable in April 2021 and May 2021 respectively, has been notified.

For registered persons who have opted for monthly returns: 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 notified.

For Taxpayers having an aggregate turnover upto Rs. 5 Crores in 2020-21, opted for quarterly returns: 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 notified.

For registered persons who have opted for 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 notified for the tax payable for the quarter ending March 31, 2021, payable in April 2021.

2. Waiver of late fees payable for Form GSTR-3B of March & April 2021 and quarter ending March 2021

The CBIC vide Notification No. 9/2021 – Central Tax dated May 1, 2021 amended Notification 76/2018 – Central Tax dated December 31, 2018 to provide the relief by waiver of late fees for delay in furnishing of return in Form GSTR-3B for the months of March, 2021 & April 2021 and quarter January-March, 2021.

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 and April, 2021, due in April 2021 and May 2021 respectively.

For registered persons having aggregate turnover upto Rs 5 crore who opt for monthly returns: 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 and April 2021 (for taxpayers filing monthly returns) due in April 2021 and May 2021 respectively and for period January-March, 2021 (for taxpayers filing quarterly returns under QRMP scheme) due in April 2021.

Taxpayers having an aggregate turnover upto Rs. 5 Crores in 2020-21, who opt for quarterly returns: Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods January to March 2021 (for taxpayers filing quarterly returns).

3. Extension of due date for furnishing return in Form GSTR-4

The CBIC vide notification No. 10/2021 – Central Tax notified that the due date for filing annual return in form GSTR-4 required to be filed by composition tax payers, for the year 2020-21 extended from April 30, 2021 to May 31, 2021.

4. Extension of Due date for filing return in form ITC-4

The CBIC vide notification 11/2021-Central Tax notified that the due date for filing return in form ITC-4 (Quarterly return on job work movements) for the period January 2021 to March 2021 has been extended upto May 31, 2021.

5. Extension of due date for filing GSTR-1 for the month of April 2021

The CBIC vide notification 12/2021-Central Tax notified that the due date for filing GSTR-1 for the month of April 2021, for those who are liable to file the same on monthly basis, shall be extended from May 11, 2021 to May 26, 2021.

6. Certain amendments in CGST Rules

Relaxation in availment of ITC: Rule 36(4) i.e. 105 per cent cap on the availment of ITC in FORM GSTR-3B to be applicable on a cumulative basis for period April and May 2021, to be applied in the return for tax period May 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 has already been enabled for the period from April 27, 2021, to May 31, 2021.

7. Relaxation of time limit for compliance (which falls during the period from 15thApril 2021 to 30th May 2021 till 31st May 2021) under GST Law

Time limit for completion or compliance of any action, by any authority or by any person, which falls during the period from the 15th April, 2021 to the 30th May, 2021 is extended up to 31st May, 2021.

The time limit for completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called by any authority, commission or tribunal, which falls during the period from the 15th April, 2021 to the 30th May, 2021 is extended up to 31st May, 2021.

The time limit for filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, which falls during the period from the 15th April, 2021 to the 30th May, 2021 is extended up to 31st May, 2021.

The time limit for verification of application for fresh GST registration and approval/ grant of GST registration under rule 9 of CGST Rules, which falls during the period from the 1st May, 2021 to the 31st May, 2021 is extended up to 15th June, 2021.

Time limit for passing order of GST Refund under section 54(5) where a notice has been issued for rejection of refund claim and where the time limit for issuance of order under section 54(5) read with sec 54(7) falls during the period from 15th April, 2021 to the 30th May, 2021, in such cases the time limit for issuance of the said order is extended to 15 days after the receipt of reply to the notice from the registered person or the 31st day of May, 2021, whichever is later.

The due date for furnishing statement of TDS deducted/ TCS Collected for the month of April, 2021 in Form GSTR-7/ Form GSTR-8 have been extended till 31st May, 2021.

The due date of filing return by Input Service Distributor/ non-resident taxable person for the month of April, 2021 in Form GSTR-6/ Form GSTR-5 have been extended till 31st May, 2021

8. Businesses to verify monthly GST returns through EVC till May 31

Any registered person during the period from April 21, 2021, to May 31, 2021, will be allowed to furnish the return in Form GSTR-3B and details of outward supplies in Form GSTR-1 verified through electronic verification code (EVC).

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