As we all know, taxpayers face issues in complying with statutory and regulatory compliance under Goods & Services Tax (GST). Furthermore, Taxpayers are suffering due to the second wave of the COVID-19 Crisis. So, the 43rd GST Council Meeting has released notification of different steps to reduce taxpayers’ burden. In this article, we will read about the COVID19 related relief measures for GST taxpayers.
GST Relief Measures for Small Taxpayers having aggregate turnover upto Rs. 5 crore
For March & April 2021 tax periods:
- No interest shall be charged on late GST payment for the first 15 days delay from the due date of filing GSTR-3B or PMT-06 Challan.
- Thereafter, a reduced rate of 9% chargeable for further delays of 45 days and 30 days for March and April 2021 respectively.
- The late fee shall be waived off for delay in filing GSTR-3B for the tax periods March / QE March 2021 and April 2021 for 60 days and 45 days respectively, from the due date of filing GSTR-3B.
- NIL rate of interest for the first 15 days from the due date of filing the statement in CMP-08 by composition dealers for QE March 2021, and reduced rate of 9% thereafter for further 45 days.
For May 2021 tax period:
- NIL rate of interest for first 15 days from the due date of filing GSTR-3B or filing of PMT-06 Challan, and reduced rate of 9% thereafter for further 15 days.
- Waiver of late fee for delay in filing GSTR-3B for taxpayers filing monthly returns for 30 days from the due date of filing GSTR-3B.
GST Relief Measures for Large Taxpayers having aggregate turnover more than Rs. 5 crore
The relaxations for large taxpayers whose aggregate turnover > ₹5 crores are as follows
- A lower rate of interest @ 9% for the first 15 days after the due date of filing return in FORM GSTR-3B for the tax period May 2021.
- Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax period May 2021 for 15 days from the due date of furnishing FORM GSTR-3B.
Other COVID-19 Related Relief Measures for GST Taxpayers
- Extension of the due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.
- The due date of filing GSTR-4 for FY 2020-21 is extended to 31st July 2021.
- The deadline of filing ITC-04 for QE March 2021 is increased to 30th June 2021.
- Cumulative application of rule 36(4) for availing ITC for tax periods April, May, and June 2021 in return for the period June 2021.
- Allowing filing of returns by companies using Electronic Verification Code (EVC) instead of Digital Signature Certificate (DSC) till 31st August 2021.
Relaxations u/s 168A of CGST Act
The 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 up to 30th June 2021, subject to some exceptions.
Important Note – These are the major COVID-19 related relief measures for GST Taxpayers and Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply.
Simplification of Annual Return for Financial Year 2020-21
Finally, the Ministry of Finance has lessened the annual GST Return GSTR-9 norms and modified a variety of form aspects after the demand from industry professionals and companies. Let us look at the Simplification of Annual Return for Financial Year 2020-21:
- As per the 43rd GST Council meeting, GSTR-9 continues to be optional for taxpayers having turnover up to Rs.2 crore.
- However, The Form GSTR-9C can be self-certified from FY 2020-21 onwards by taxpayers having a turnover less than or equal to Rs.5 crore.
- The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with an annual aggregate turnover above Rs 5 Crore.
Furthermore, the Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on the net cash basis, to be notified at the earliest.
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