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Various Relaxation in GST Compliance for the period March 2021 and April 2021

Lowering Interest Rate:

The CBIC vide following notifications:

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

Notification No. 01/2021 – Integrated Tax dated 1st May, 2021

Notification No. 01/2021 – Union Territory Tax dated 1st May, 2021, has provided relief to taxpayers by lowering interest rate for the period March 2021 to April 2021 for certain class of taxpayers which are as follows:

S. No.

(1)

Class of Registered Person

(2)

Rate of Interest

(3)

Tax Period

(4)

4

Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year

9 per cent for the first 15 days from the due date and

18 per cent thereafter

March, 2021,

April, 2021

5

Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under sub-section (1) of section 39

Nil for the first 15 days from the due date,

9 per cent for the next 15 days, and

18 per cent thereafter

March, 2021,

April, 2021

6

Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to sub-section (1) of section 39

Nil for the first 15 days from the due date,

9 per cent for the next 15 days, and

18 per cent thereafter

March, 2021,

April, 2021

7

Taxpayers who are liable to furnish the return as specified under sub-section (2) of section 39

Nil for the first 15 days from the due date,

9 per cent for the next 15 days, and

18 per cent thereafter

Quarter ending

March, 2021

This notification shall be deemed to have come into force with effect from the 18th day of April, 2021

Waiver of Late Fee:

The CBIC vide Notification No. 09/2021 – Central Tax dated 1st May, 2021 has provided relief to taxpayers by waiving late fee for delay in furnishing GST returns for the period March 2021 to April 2021 for certain class of taxpayers which are:

S. No.

(1)

Class of registered persons

(2)

Tax period

(3)

Period for which late fee waived (4)

1

Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year

March, 2021 and April, 2021

Fifteen days from the due date of furnishing return

2

Taxpayers having an aggregate turnover of up

to rupees 5 crores in the  preceding financial year who are liable to furnish the return as specified under sub-section (1) of section 39

March, 2021 and April, 2021

Thirty days from the due date of furnishing return

3

Taxpayers having an aggregate turnover of up

to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to sub-section (1) of

section 39

January-March, 2021

Thirty days from the due date of furnishing return.

This notification shall be deemed to have come into force with effect from 20th day of April, 2021.

Extension in due date of filing GSTR 4

The CBIC vide Notification No. 10/2021 – Central Tax dated 1st May, 2021 has made an amendment in Notification No. 21/2019-Central Tax, dated April 23, 2019 by extending the time period for filing FORM GSTR-4 for the financial year ending March 31, 2021 up to 31st May, 2021.

This notification shall be deemed to have come into force with effect from 30th day of April, 2021.

Extension in due date of furnishing Form GST ITC-04

The CBIC vide Notification No. 11/2021 – Central Tax dated 1st May, 2021 has extended the time period for furnishing the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker, during the period from 1st January, 2021 to 31st March, 2021 up to 31st May, 2021.

This notification shall be deemed to have come into force with effect from 25th day of April, 2021.

Extension in due date of furnishing Form GSTR 1

The CBIC vide Notification No. 12/2021 – Central Tax dated 1st May, 2021 has made an amendment in Notification No. 83/2020-Central Tax, dated November 10, 2020 whereby time limit for furnishing the details of outward supplies in FORM GSTR-1 for the registered persons required to furnish return under sub-section (1) of section 39 of the said Act, for the tax period April, 2021, is till 26th day of the month succeeding the said tax period, i.e. for April 2021 return under sub-section (1) of section 39 can be filed till 26th May 2021.

Amendment in CGST Rules

The CBIC vide Notification No. 13/2021 – Central Tax dated 1st May, 2021 has made third amendment in Central Goods and Services Tax Rules, 2017 which are as follows:

  1. Rule 36(4) of the CGST Rules, 2017 – a new proviso is inserted, which is as follows:

“Provided further that such condition shall apply cumulatively for the period April and May 2021 and the return in FORM GSTR-3B for the tax period May 2021 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.”;

The above proviso says that, registered person can perform cumulative GSTR 2A reconciliation as mentioned in Rule 36(4) of CGST Rules, 2017, for the period April & May 2021 and the respective Input Tax Credit adjustment shall be furnished in the Form GSTR 3B for the tax period May 2021.

  1. Rule 59(2) of the CGST Rules, 2017 – a new proviso is inserted, which is as follows:

“Provided that a registered person may furnish such details, for the month of April 2021, using IFF from the 1st day of May 2021 till the 28th day of May, 2021.”

The above proviso says that, registered persons using Invoice Furnishing Facility (IFF) can furnish the details for the month of April 2021, from May 01, 2021 to May 28, 2021.

Extension in Compliances falling between 15.04.2021 to 30.05.2021 till 31.05.2021

In view of the spread of pandemic COVID-19 across many countries of the world including India, CBIC has issued Notification no. 14/2021 – Central Tax dated 1st May, 2021, whereby time limit for completion or compliance of any action, by any authority or by any person as specified falling between the period April 15, 2021 to May 30, 2021, the time limit for completion or compliance of such action, shall be extended up to 31st May, 2021, it includes:

  • 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, or
  • Filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record.

Such extension of time shall not be applicable for the compliances of the provisions of the Act, as mentioned below:-

  1. Chapter IV;
  2. sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129;
  3. section 39, except sub-section (3), (4) and (5);
  4. section 68, in so far as e-way bill is concerned; and
  5. rules made under the provisions specified at clause (a) to (d) above;

Provided that where, any time limit for completion of any action, by any authority or by any person, specified in, or prescribed or notified under rule 9 of the Central Goods and Services Tax Rules, 2017, falls during the period 1st May, 2021 to 31st May, 2021, and where completion of such action has not been made within such time, then, the time limit for completion of such action, shall be extended up to the 15th day of June, 2021.

In cases where a notice has been issued for rejection of refund claim, in full or in part and where the time limit for issuance of order in terms of the provisions of sub-section (5), read with sub-section (7) of section 54 of the said Act falls during the period from April 15, 2021 to May 30, 2021, in such cases 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.

This notification shall be deemed to have come into force with effect from 15th day of April, 2021.

 

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