43rd GST council meeting: Extention of dates for COVID-19 related relief measures for taxpayers

Updated on : 2021-May-29 14:27:28 | Author :

 

The GST Council in its 43rd meeting held on 28th May 2021 at New Delhi took the following decisions relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure. the extended date for the GST return is described below

 

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 up to Rs. 5 crores):

 March & April 2021 tax periods:

  1. NIL rate of interest for first 15 days from the due date of furnishing the return in FORM GSTR-3B or filing of PMT-06 Challan, reduced rate of 9% thereafter for further 45 days and 30 days for March 2021 and April 2021 respectively.
  2. Waiver of late fee for delay in furnishing return in FORM 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 furnishing FORM GSTR-3B.
  3. NIL rate of interest for the first 15 days from the due date of furnishing the statement in CMP-08 by composition dealers for QE March 2021, and reduced rate of 9% thereafter for further 45 days.

For small taxpayers (aggregate turnover up to Rs. 5 crores): 

For May 2021 tax period:

  1. NIL rate of interest for first 15 days from the due date of furnishing the return in FORM GSTR-3B or filing of PMT-06 Challan, and reduced rate of 9% thereafter for further 15 days.
  2. Waiver of late fee for delay in furnishing returns in FORM GSTR- 3B for taxpayers filing monthly returns for 30 days from the due date of furnishing FORM GSTR-3B. the last date 19.06.2021

For large taxpayers (aggregate turnover more than Rs. 5 crores)

a. 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.

b. 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.

 

Certain other COVID-19 related relaxations to be provided, such as

  1. Extension of the due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.
  2. Extension of the due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
  3. Extension of the due date of filing ITC-04 for QE March 2021 to 30.06.2021.
  4. Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June 2021 in the return for the period June 2021.
  5. Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (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 up to 30th June 2021, subject to some exceptions.

 

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.

 

Measures for Trade facilitation:

Amnesty Scheme to provide relief to taxpayers regarding the late fee for pending returns:

 

To provide relief to the taxpayers, a late fee for non-furnishing FORM GSTR- 3B for the tax periods from July 2017 to April 2021 has been reduced/waived as under: -

 

    1. late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;

 

    1. late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers;

 

The reduced rate of the late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.

Covid relief items

As a COVID-19 relief measure, a number of specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on the recommendation of state authority to any relief agency.

 

This exemption shall be valid up to 31.08.2021. Hitherto, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.20201. It may be mentioned that these goods are already exempted from Basic Customs duty. Further, in view of rising Black Fungus cases, the above exemption from IGST has been extended to Amphotericin.

 

As regards individual items, it was decided to constitute a Group of Ministers (GoM) to go into the need for further relief to COVID-19 related individual items immediately. The GOM shall give its report by 08.06.2021.

 

 

 

 

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