28/05/2021
Few outcome of 43rd GST Council Meeting as Measures for Trade facilitation:
∆ Amnesty Scheme to provide relief to taxpayers regarding late fee for pending GSTR-3B for the tax periods from July, 2017 to April, 2021 if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021:
✓ Maximum Rs. 500/- (including CGST and SGST) per return who did not have any tax liability for the said tax periods;
✓ Maximum Rs. 1000/- per return for other taxpayers;
∆ Rationalization of late fee imposed under section 47 of the CGST Act:
A. The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 to be capped, per return, as below:
✓ For taxpayers having NIL tax liability or NIL outward supplies : Rs 500
✓ For other taxpayers:
- For taxpayers having Annual Aggregate Turnover (AATO) in preceding year UPTO Rs 1.5 crore : Rs 2000
- For taxpayers having AATO in preceding year between Rs 1.5 crore to Rs 5 crore : Rs 5000
- For taxpayers having AATO in preceding year above Rs 5 crores : Rs 10000
B. The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers to be capped to
✓ Rs 500 per return, if tax liability is NIL
✓ Rs 2000 per return for others.
C. Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to
✓ Rs. 50/- per day
✓ Rs 2000/-
All the above proposals to be made applicable for prospective tax periods.
∆ COVID-19 related relief measures for taxpayers:
In addition to the relief measures already provided to the taxpayers vide the notifications issued on 01.05.2021, the following further relaxations are being provided to the taxpayers:
✓ For small taxpayers (aggregate turnover upto Rs. 5 crore)
- March & April 2021:
: NIL interest for first 15 days from the due date of payment,
: 9% thereafter for further 45 days for March and 30 days for April, 2021.
: Waiver of late fee for GSTR-3B for March 60 days and for April 45 days.
: NIL rate of interest for first 15 days for CMP-08 by composition dealers for QE March 2021, and reduced rate of 9% thereafter for further 45 days.
- For May 2021:
: NIL rate of interest for first 15 days and reduced rate of 9% thereafter for further 15 days.
: Waiver of late fee for GSTR-3B for 30 days.
√ For large taxpayers (aggregate turnover more than Rs. 5 crore)
: Interest @ 9% for first 15 days for May, 2021.
: Waiver of late fee for GSTR-3B for May for 15 days
✓ Certain other COVID-19 related relaxations to be provided, such as:
: Filing GSTR-1/ IFF for the month of May by 15 days.
: GSTR-4 for FY 2020-21 to 31.07.2021.
: ITC-04 for QE March : 30.06.2021.
: Cumulative application of rule 36(4) for April, May and June can be made in June return.
: Allowing filing of returns by companies using EVC, instead of DSC till 31.08.2021.
✓ Relaxations under section 168A of the CGST Act
: Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, to be extended upto 30th June, 2021, subject to some exceptions
[Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the
same would apply]
∆ Full Exemption from IGST on import of COVID relief items whether on payment basis or free of cost for donating to State Govt. or authorised agency. (upto 31.08.21)
∆ Further relief on black fungus medicine also to be extended. And a committee constituted to suggest reduction in GST rates in medical items.
∆ For Small taxpayers having T/o upto 2 Cr. GSTR-9 is optional.
∆ Self Certified GSTR-9C to filled by taxapyers having T/o above 5 Cr. (No CA/CMA certification required)
