Key Reliefs under GST Laws due to COVID-19 pandemic
The Ministry of Finance (Department of revenue) of India has released several notifications on 1st of May 2021 due to the spread of COVID-19 across the country to give due date extensions to taxpayers for filling various GST returns and forms for March-21 and April-21. Apart from extensions of due dates CBIC also waiver the interest and late fees on filling of various GST Return and forms for the month of March-21 and April-21.
The Summary from notification no 08/2021, 09/2021, 10/2021, 11/2021, 12/2021, 13/2014 and 14/2021 of central tax is as follows:
- Reduction in Interest Rate and Waiver of Late Fees
| Sr.No. | Turnover in FY 2020-21 | Interest Waiver/ Lower rate (From Due Dates) | Interest Calculation (Return Period) | Late fee | ||
| Mar-21 | Apr-21 | Mar-21 | Apr-21 | |||
| 1 | More Than ₹ 5 Crores | 9% p.a. for first 15 days and thereafter 18% p.a. till tax payment date | Original Due Date : 20/04/2021
9% p.a. up to 05/05/2021 and; From 06/05/2021 18% p.a. will be charged till tax payment date |
Original Due Date : 20/05/2021
9% p.a. up to 04/06/2021 and; From 05/06/2021 18% p.a will be charged till tax payment date |
The Late fee waived up to 05/05/2021 | The late fee is waived up to 04/06/2021 |
| 2 | Less Than
₹ 5 Crores but opt to file GSTR-3B Monthly |
Nil for the First 15 days, 9% for next 15days and thereafter 18% p.a. interest will be charged | No interest up to 05/05/2021;
From 06/05/2021 9% p.a till 20/05/2021 and; From 21/05/2021 18% p.a. will be charged till tax payment date |
No interest up to 04/06/2021;
From 05/06/2021 9% p.a till 19/06/2021 and; From 20/06/2021 18% p.a. will be charged till tax payment date |
The Late fee waived up to -20/05/2021 | The late fee is waived up to 19/06/2021 |
| 3 | Less Than
₹ 5 Crores but opt to file GSTR-3B Quarterly (QRMPS) |
Nil for the First 15 days, 9% for next 15days and thereafter 18% p.a. interest will be charged | (#category 1)
Original Due Date : 22/05/2021 No interest up to 07/05/2021; From 08/05/2021 9% p.a till 22/05/2021 and; From 23/05/2021 18% p.a. will be charged till tax payment date |
(#category 1 and ## category 2)
Original Due Date : 25/05/2021
No interest up to 09/06/2021; From 10/06/2021 9% p.a till 24/06/2021 and; From 25/06/2021 18% p.a. will be charged till tax payment date |
For #category 1 late fee is waived up to 24/05/2021 | NA |
| (##category 2)
Original Due Date : 24/05/2021 No interest up to 09/05/2021; From 10/05/2021 9% p.a till 24/05/2021 and; From 25/05/2021 18% p.a. will be charged till tax payment date |
For ##category 2 late fee is waived up to 24/05/2021 | NA | ||||
| #Category 1 Taxpayer is register in States: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep. | ||||||
| ##Category 2 Taxpayer is register in States: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi. | ||||||
The Government has provided relaxation of interest on late filing of Form CMP-08 for a statement of Quarterly Payment of Tax for the last quarter of FY 2020-21. The relaxation provided is summarized as under:
| Particulars | Quarter | Due date | Relaxation in Interest | |
| Form CMP-08 for a statement of Quarterly Payment of Tax | Jan-Mar-21 | 18-Apr-21 | Till 3-May-21 | Nil |
| 4-May-21 to 18-May-21 | 9% | |||
| After 18-May21 | 18% | |||
- Extension of Due Dates
| Sr no | Particulars | Period | Original Due Date | Extended Due Date |
| 1 | Monthly GSTR 1 | April 2021 | 11th May 2021 | 26th May 2021 |
| 2 | QRMP Scheme (IFF) | April 2021 | 13th May 2021 | 28th May 2021 |
| 3 | ITC -04 : Goods Received / sent to Job Workers | January – March 2021 | 25th April 2021 | 31st May 2021 |
| 4 | GSTR 4: Annual Return of Composition Dealer | F.Y. 2020-21 | 30th April 2021 | 31st May 2021 |
| 5 | GSTR 5 : Non Resident Foreign Taxpayer | March 21
|
20th April 2021 | 31st May 2021 |
| April 21 | 20th May 2021 | 31st May 2021 | ||
| 6 | GSTR 6 : Return filed by Input Service Distributor | April 21 | 13th May 2021 | 31st May 2021 |
| 7 | GSTR 7 : For Tax Deductor | April 21 | 10th May 2021 | 31st May 2021 |
| 8 | GSTR 8 : E commerce operator who collect TCS | April 21 | 10th May 2021 | 31st May 2021 |
- Relaxation in availing Input Tax Credit under Rule 36(4) for the period of April 21 and May 21:
As per Rule 36(4) of the CGST Rules, 2017, a person can take ITC claim in respect of invoices that are not uploaded by vendors in their Form GSTR 1 or through Invoice Furnishing Facility (‘IFF’) maximum of up to 5% of the invoices furnished by the vendors in their Form GSTR 1/ through IFF Facility i.e. only 105% of only invoices coming in GSTR-2A.
Now, this condition has been relaxed for the month of April and relaxation has been given in respect of the month of April. The condition of Rule 36(4) would apply cumulatively in the month of May 2021 for both April and May 2021.
- Other Reliefs:
- The filing of GSTR-3B and GSTR-1/ IFF by companies using electronic verification code has been enabled for the period from 27.04.2021 to 31.05.2021. The requirement of filing these returns through Digital Signature (DSC) is waived off.
- The Time limit for completion of various actions such as completion of any proceedings, filing of appeal/reply/application, etc. by any authority or by any person, under the GST Act, which falls during the period from 15th April 2021 to 30th May 2021, has been extended up to 31st May 2021.