Couple of Day ago we were talking about the extension & waivers & here comes the government with some relief for all the stakeholder's. In order to help the Taxpayers in covid time with the challenges faced them. In meeting the statutory and regulatory compliances under GST law due to the outbreak of the second wave of COVID-19 pandemic, the Government has issued notifications regarding, allowing various relief measures for taxpayers. The measures are explained as follows:
👉 Firstly Reduction in rate of interest for the taxpayers:
Concessional rates of interest in lieu of the traditional rate of interest of 18% once a year for delayed tax payments are prescribed within the following cases.
a. For taxpayers having aggregate turnover above Rs. 5 crore: A lower rate of interest of 9 per cent for the primary 15 days from the maturity 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 should 2021 respectively, has been notified.c. For the taxpayers who have been opted to pay tax under the Composition scheme: NIL rate of interest for first 15 days from the maturity of payment of tax and 9 per cent for subsequent 15 days, and 18 per cent thereafter has been declared for the tax payable for the period ending 31st March, 2021, payable in April 2021.
👉 Secondly the Waiver of late fee
a. For taxpayers having aggregate turnover above Rs. 5 crore: Late fee waived for 15 days in respect of returns in FORM GSTR-3B furnished beyond the maturity for the period ending March, 2021 and April, 2021, due in the April 2021 and May 2021 respectively;b. For taxpayers having aggregate turnover up to Rs. 5 crore: Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the maturity for the period ending March, 2021 and April, 2021 (for taxpayers filing monthly returns) due in April 2021 and should 2021 respectively / and for period Jan-March, 2021 (for registered person liable for filing quarterly returns under QRMP scheme) due in April 2021.
👉 Thirdly the Extension of due date for filing of GSTR-1, IFF, GSTR-4 and ITC-04
a. maturity of filing FORM GSTR-1 and IFF for the month of April (due in May) has been extended by 15 days.c. maturity of furnishing FORM ITC-04 for Jan-March, 2021 quarter has been moved from 25th April, 2021 to 31st May, 2021.
👉 Fourthly Certain Other amendments in CGST Rules:
a. Relief in availment of ITC: Rule 36(4) i.e. 105% cap on availment of ITC in FORM GSTR-3B to be applicable on cumulative basis for period April and should 2021, to be applied within the return for tax period May 2021. Otherwise, rule 36(4) is applicable for every tax period.
- Lastly Extension in statutory time limits 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 amount from 15th April, 2021 to 30th May, 2021, has been extended up to 31st May, 2021, subject to some exceptions as laid out in the notification. (Source)
