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Alerts:

Indirect Tax Alert - GST: Relaxations of timelines in few compliance procedures, reduction/waiver of interest/late fees

03 May 2021

Considering the resurgence of the COVID 19 pandemic and the hardships faced by taxpayers, CBIC has issued various notifications relaxing few timelines to meet compliances, reduced interest rates for belated tax payments and waived late fees for belated filing for specified periods, which are summarised below:

Notification no:

Summary

08/2021–CGST

01/2021- IGST&

01/2021-UTGST

 

Effective date: 18 April 2021

 

 

Rate of Interest

Amendment to notification no:13/2017-Central Tax, dated the 28 June 2017 &

Notification no:06/2017 – Integrated Tax, dated 28 June 2017 &

Notification no:10/2017–Union Territory Tax, dated 30 June 2017

Sl. No.

Class of Registered Person

Rate of Interest

Tax Period

1.

Taxpayers having an aggregate turnover of more than INR 50mn in the preceding financial year

9%- for the first 15 days from the due date and

18%– thereafter

March & April 2021

2.

Taxpayers having an aggregate turnover of up to INR 50mn in the preceding financial year who are liable to furnish the return as specified under section 39(1) (Monthly return filers other than Input Tax Distributor (ISD), non-resident taxable person, the person paying tax under composition scheme, under section 51 (TDS) or section 52 [TCS by e-commerce operator])

NIL - First 15 days from the due date;

9% - for next 15 days and

18% - thereafter

March & April 2021

3

Taxpayers having an aggregate turnover of up to INR 50mn in the preceding financial year who are liable to furnish the return as specified under proviso to section 39(1) (notified classes of registered persons who shall furnish a return for every quarter)

NIL - First 15 days from the due date;

9% - for next 15 days and

18% - thereafter

March & April 2021

4.

Taxpayers who are liable to furnish the return as specified under section 39(2)(Composition taxpayers under Section 10)

NIL - First 15 days from the due date;

9% - for next 15 days and

18% - thereafter

Quarter ending March 2021

 

09/2021 –CGST

 

Effective date: 20 April 2021

Waiver of Late Fee payable for GSTR 3B

Amendment to Notification no:76/2018-Central Tax, dated the 31 December 2018 

Sl. No.

Class of Registered Person

Tax Period

Period for which late fees waived

1.

Taxpayers having an aggregate turnover of more than INR 50mn in the preceding financial year.

March & April 2021

15 days from the due date of furnishing return

2.

Taxpayers having an aggregate turnover of up to INR 50mn in the preceding financial year who are liable to furnish the return as specified under section 39(1).

March & April 2021

30 days from the due date of furnishing return

3.

Taxpayers having an aggregate turnover of up to INR 50mn in the preceding financial year who are liable to furnish the return as specified under proviso to section 39(1).

January - March, 2021

30 days from the due date of furnishing return

 

10/2021–CGST

 

Effective date: 30 April  2021

Amendment to notification no:21/2019-Central Tax, dated 23 April 2019

This notification seeks to amend notification no:21/2019-Central Tax, dated 23 April 2019, by extending the period for filing FORM GSTR-4 to 31 May 2021 for the financial year ending 31 March 2021.

11/2021–CGST

 

Effective date: 25 April 2021

This notification seeks to extend the period for filing FORM ITC – 04 to 31 May 2021, in respect of the goods dispatched to job worker or received from a job worker for the period from 01 January 2021 to 31 March 2021

12/2021-CGST

 

Effective date: 01 May 2021

Amendment to notification No. 83/2020-Central Tax, dated 10 November 2020 – Waiver of Late Fees for GSTR 1

The time limit for furnishing a return under section 39(1) in Form GSTR 1 for the tax period April 2021, shall be extended to the 26th day of the month succeeding the said tax period. (i.e., 26 May 2021)

13/2021 – Central Tax

[Central Goods and Services Tax (Fourth Amendment) Rules, 2021]

 

Effective date: 01 May 2021

 

Rule 36(4) of the CGST Rules, 2017

Insertion of new proviso, which is re-iterated 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.”;

Based on the above, 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 ITC adjustment shall be furnished in the Form GSTR 3B for the tax period May 2021.

Rule 59(2) of the CGST Rules, 2017

Insertion of new proviso, which is re-iterated as follows:

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

Based on the above, registered persons using IFF shall furnish the details for the month of April 2021, from 01 May 2021 to 28 May 2021.

14/2021–Central Tax

 

Effective date: 15 April 2021

The notification extends the time limit for completion or compliance of any action, by any authority or by any person as specified falling between the period from the 15 April 2021 to 30 May 2021, including:

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

shall be extended up to 31 May 2021.

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 from 1 May 2021 to the 31 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 15 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 15 April 2021 to 30 May 2021, in such cases the time limit for issuance of the said order shall be extended to 15 days after the receipt of reply to the notice from the registered person or the 31 May 2021, whichever is later.

 

 

Comments:

While companies are responding to the financial stress caused by the pandemic through work force protection, supply chain stabilisation, customer engagement, financial stress testing and business continuity planning, it is pertinent to have knowledge of tax laws and stay abreast with periodical changes, and the reliefs announced by the Government will aid in navigating these challenging times.