Taxation & Accounting

Tag: GST (Page 1 of 201)

E-invoicing system for e-Commerce Operators

The e-invoicing system is also available for the E-Commerce Operators (ECO) to
report the invoices to the Invoice Registration portal, generated by them on behalf
of the suppliers. The e-invoicing system identifies the e-Commerce operators based
on the taxpayer type in the GST registration details. The taxpayer having the type
as ‘TCS’ will be enabled for reporting invoices on the e-invoicing system as eCommerce Operator.
However, it is important to note that E-commerce transactions can be reported by
the E-commerce operators with “EcmGstin†attribute as their GSTINs. This means
to say, that apart from specifying the Seller GSTIN in the payload, it is mandatory
to specify the e-Commerce operator GSTIN in the “EcmGstin†attribute of the
schema by e-Commerce Operator when he logs in using his user credentials.

  1. e-Invoice APIs available for e-Commerce Operators
    • Generate IRN (for self or on behalf of suppliers)
    • Cancel IRN (applicable to only for those IRNs, generated by e-Commerce
    operator)
    • Generate E-Waybill
    • Cancel E-waybill (applicable to only for those IRNs generated by e-Commerce
    operator)
    • Get IRN (applicable to only for those IRNs, generated by e-Commerce operator)
  1. Scope of Access to IRNs generated by e-Commerce operator and Supplier
  1. Process for integrating on the Sandbox system
    The following procedure has to be followed by the e-Commerce operators to
    integrate their ERP systems to the sandbox system of IRP.
    • The Registration module in the sandbox system has an option ‘E-Commerce
    Operator’
    • The e-Commerce Operator may select this option and enter the GSTIN of type ‘TCS’
    and get registered in the sandbox portal, by authenticating with OTP sent to the
    GSTIN registered mobile.
    • API credentials such as Client-Id, Client-Secret, User-name and Password may be
    generated.
    • On logging into the sandbox tool, there is no need to add the GSTINs.
    • The payload to generate the IRN may be prepared and tested in the sandbox tool.
    • As already mentioned, the payload shall contain the Seller GSTIN, Buyer GSTIN and
    also the e-Commerce GSTIN along-with other details.
    • All other validations and schema and procedure mentioned in the sandbox portal
    may be followed.
    • While using the ‘Cancel IRN’,’ Generate EWB by IRN’, Cancel EWB’, ‘Get IRN’, send
    the ‘Supplier GSTIN’ in addition to other parameters
  1. Process for integrating on the Production system
    The following procedure may be followed by the e-Commerce operators to
    integrate their ERP systems to the production system of IRP.
    • The TCS registered taxpayer will need to do login registration in the Invoice
    registration portal (https://einvoice1.gst.gov.in ). If already registered, the
    taxpayer can login to the Invoice registration portal.
    • Select the API registration.
    • Submit the application for whitelisting the IPs along with summary test report. Up
    to 4 Indian Static IPs are allowed.
    • On submission of the application, the network team will scrutinize and whitelist
    the IPs.
    • API credentials such as Client-Id, Client-Secret, User-name and Password may be
    generated.
    • Create the username and password for the other PAN related GSTINs by selecting
    the above GSTIN.
    • Use above credentials, the payload to generate the IRN, may be prepared and IRN
    may be generated.
    • As already mentioned, the payload will contain the Seller GSTIN, Buyer GSTIN and
    also the e-Commerce GSTIN along with other details

http://www.onlinegst.in/

GST Revenue collection for May 2021

GST Revenue collection for May 2021

₹ 1,02,709 crore gross GST revenue collected in May

The gross GST revenue collected in the month of May 2021 is₹1,02,709 crore of which CGST is â‚¹17,592 crore, SGST is â‚¹22,653, IGST is â‚¹53,199 crore (including â‚¹26,002 crore collected on import of goods) and Cess is â‚¹ 9,265 crore (including â‚¹868 crore collected on import of goods).The above figure includes GST collection from domestic transactions till 4th of June since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month May’21 in the wake of covid pandemic second wave.

During this month the government has settled ₹ 15,014 crore to CGST and ₹ 11,653 crore to SGST from IGST as regular settlement.

The revenues for the month of May 2021 are 65% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 56% higher and the revenues from domestic transaction (including import of services) are 69% higher than the revenues from these sources during the same month last year.

This would be eighth month in a row that GST revenues have crossed ₹ 1 lakh crore mark. This is despite the fact that most of the States have been under strict lockdown due to the pandemic. In addition, while the taxpayers with turnover above ₹ 5 crore had to file their returns by 4th June, which they would have otherwise filed by 20th May, smaller taxpayers with turnover less than ₹ 5 crore still have time till first week of July to file the returns without any late fee and interest and the revenue from these taxpayers is deferred till then. The actual revenues for the month of May 2021, thus would be higher and would be known when all the extended dates expire.

http://www.onlinegst.in/

Synopsis of Notifications issued basis of the decisions taken in 43rd GST Council Meeting

Notification No. 16/2021 – Central Tax dated 1st June 2021

Interest on delayed payment of taxes is to be paid on the net liability, i.e., the amount debited in the cash ledger. This is a retrospective amendment.

Notification No. 17/2021 – Central Tax dated 1st June 2021

The due date for filing GSTR – 1 for the month of May 2021 has to be filed by 26th June 2021.

Notification No. 18/2021 – Central Tax dated 1st June 2021

Relaxation is given for the payment of interest for the delay in payment of taxes on account of the lockdowns. The notification is a retrospective one and effective from 18th May 2021.

Sr. No Details/Particulars Rate of Interest Months
1 Taxpayers having turnover above ₹ 5 crores during the previous financial year Reduced rate at 9% for the first 15 days and 18% if the delay is more than 15 days. March – 21 April – 21 May – 21  
2 Taxpayers having a turnover of less than ₹ 5 crores and paying taxes on a monthly basis 1st day to 15th day   – 0% 16th day to 60th day – 9% 61st day onwards    – 18%   1st day to 15th day   – 0% 16th day to 45th day – 9% 46th day onwards   – 18%   1st day to 15th day   – 0% 16th day to 30th day – 9% 31st day onwards   – 18%   March – 21       April – 21       May – 21  
3 Taxpayers having a turnover of less than ₹ 5 crores and paying taxes on a monthly basis 1st day to 15th day   – 0% 16th day to 60th day – 9% 61st day onwards    – 18%   1st day to 15th day   – 0% 16th day to 45th day – 9% 46th day onwards   – 18%   1st day to 15th day   – 0% 16th day to 30th day – 9% 31st day onwards   – 18%   March – 21       April – 21       May – 21  
4 Taxpayers who have opted for QRMP Scheme 1st day to 15th day   – 0% 16th day to 60th day – 9% 61st day onwards    – 18%   Jan-March 21 Quarter

Notification No. 19/2021 – Central Tax dated 1st June 2021

The late fee for GSTR – 3B has been reduced to taxpayers filing returns due to delays caused by the prevailing lockdowns and encouraging other taxpayers who have not filed returns from July 2017 to April 2021 with riders.

Late relaxation for the current financial year

Sr. No Details/Particulars Late fee waived off   Months
1 Taxpayers having turnover above ₹ 5 crores during the previous financial year If filed within 15 days of the due date March – 21 April – 21 May – 21  
2 Taxpayers having a turnover of less than ₹ 5 crores and paying taxes quarterly If filed within 60 days of the due date   If filed within 45 days of the due date   If filed within 45 days of the due date March – 21     April – 21     May – 21  
3 Taxpayers having a turnover of less than ₹ 5 crores and paying taxes on a quarterly basis If filed within 60 days of the due date   Jan-March 21 Quarter

Late relaxation for the previous periods

 Sr. No Return Filing Period Condition – 1 Condition – 1 Late Fee to be paid per month max
1 July 2017 to April 2021 Nil Filed between 1st June 21 & 31st August ₹ 250*
2 July 2017 to April 2021 If Tax liability is there Filed between 1st June 21 & 31st August ₹ 500*

*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.

Late relaxation for the future periods

The late fee waiver is provided for the future also starting from June 2021 due to the prevailing pandemic and lockdowns

Sr. No Details/Particulars Late Fee Maximum to be paid
1 Nil Tax liability    â‚¹ 250*
2 Taxpayers having turnover up to ₹ 1.50 crores  â‚¹ 1,000*
3 Taxpayers having turnover above ₹ 1.50 crores  â‚¹ 2,500*

*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.

Notification No. 20/2021 – Central Tax dated 1st June 2021

Relaxation has been provided for the delayed filing of GSTR – 1 for small taxpayers from June 2021 onwards. This applies to the taxpayers who are filing GSTR – 1 on a quarterly basis also.

Sr. No Details/Particulars Late Fee Maximum to be paid
1 Nil Tax liability    â‚¹ 250*
2 Taxpayers having turnover up to ₹ 1.50 crores  â‚¹ 1,000*
3 Taxpayers having turnover above ₹ 1.50 crores and below ₹ 5.00 crores   â‚¹ 2,500*

*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.

Notification No. 21/2021 – Central Tax dated 1st June 2021

Relaxation in late fees is also provided for taxpayers registered under the composition scheme.

Sr. No Details/Particulars Late Fee Maximum to be paid
1 Nil Tax liability    â‚¹ 250*
2 Having tax liability to be discharged  â‚¹ 1,000*

*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.

Notification No. 22/2021 – Central Tax dated 1st June 2021

Late fee relaxation has been provided to taxpayers registered as Tax Deductors and required to file GSTR – 7. The late has been capped at ₹ 1,000 per month for delay in return filing from June 2021 onwards.

Notification No. 23/2021 – Central Tax dated 1st June 2021

Relaxation is also provided for taxpayers falling under the category as Government Departments and Local bodies from issuing e-invoices.

Notification No. 24/2021 – Central Tax dated 1st June 2021

The time limits for the completion of compliance or any action by the tax authorities or any person which are falling between 15th April 2021 to 29th June 2021 has been extended in the following cases to 30th June 2021

 a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called; or

b) filing any appeal, reply, or application or furnishing any report, document, return, statement, or other records, by whatever name is called.

The above extension is not applicable in the following cases

  1. Related to Time of Supply
  2. If the turnover of the composition taxpayer has crossed the threshold during this period
  3. Section 25 – registration procedure
  4. Section 27 – procedure-related to casual taxable person and the non-resident taxable person
  5. Section 31 – Tax Invoice
  6. Section 37 – provisions related to the filing of returns for outward supplies
  7. Section 47 – provisions related to levy of late fee
  8. Section 50 – provisions related to ley of interest
  9. Section 69 – provisions related to power to arrest errant taxpayers
  10. Section 90 – provisions related to Liability of partners of firm to pay tax
  11. Section 122 – provisions related to penalties for certain offenses
  12. Section 129 – provisions related to detention, seizure and release of goods and conveyance under transit
  13. Section 39 – except for provisions related to sub-section (3), (4) and (5) related to TDS deductors, ISD and not resident taxpayers
  14. Section 68 – provisions related to e-waybill

The time limit for completion of any action by any authority or by any person as per Rule 9 of the CGST Rules related to verification and approval of registration application, falling during the period from 1st May, 2021 to 30th June 2021, shall be extended to 15th  July 2021

Notification No. 25/2021 – Central Tax dated 1st June 2021

The due date for filing of Form GSTR – 4 by composition taxpayer for the year April 2020 to March 2021 has been extended from 31st May 2021 to 31st July 2021.

Notification No. 26/2021 – Central Tax dated 1st June 2021

The due date for furnishing the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker, during the period from 1st January 2021 to 31st March 2021, has been extended from 31st May 2021 to 30th June 2021.

This notification is a retrospective one and comes applicable from 31st May 2021.

Notification No. 27/2021 – Central Tax dated 1st June 2021

Taxpayers registered as a company under various provisions of the Companies Act 2013 can file returns using the Electronic Verification Code (EVC) until 31st August 2021.

Due to the ongoing pandemic and disruptions in business on account of lockdowns, relaxation has been provided while availing Input Tax Credit. Matching needs to be done on a monthly basis for the months of April 21, May 21 and June 21. It can be done cumulatively while flinging the GSTR – 3B for the month of June 2021.

Taxpayers who have opted for the Quarterly Returns and Monthly Payment (QRMP) have also been provided some relaxation for filing of Invoice Furnishing Facility (IFF) for the month of May 2021, and now it can be filed by 28th June 2021.

Notification No.1/2021 – Central Tax (Rates) dated 2nd June 2021

Sr. No HSN Code New Rate Old Rate
1 9503 – Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys]   9503 – Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys]   9503 – Electronic Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) 2.5%         2.5%       2.5%   6%         6%       9%
2 Diethylcarbamazine 2.5% 6%

Notification No.2/2021 – Central Tax (Rates) dated 2nd June 2021

Sr. No HSN Code New Rate Old Rate
1 “(ib) Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components or parts. 2.5% 9%

Another major benefit is provided is for the landowners; now with this amendment, the landowners can utilize the input tax credit charged by the developer on the sale of apartments if sold before the issue of the occupation certificate.

Notification No.3/2021 – Central Tax (Rates) dated 2nd June 2021

The time of payment of GST by the landowner promoter shall be allowed to pay GST relating to such apartments any time before or at the time of issuance of completion certificate.

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Recommendations of 43rd GST Council meeting

The 43 GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister
Smt. Nirmala Sitharaman through video conferencing here today. The meeting was also attended
by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance
Ministers of States & UTs and senior officers of the Ministry of Finance & States/ UTs.
The GST Council has made the following recommendations relating to changes in GST rates on
supply of goods and services and changes related to GST law and procedure:
COVID-19 RELIEF
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
recommendation of state authority to any relief agency. This exemption shall be valid upto
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 31.8.2021. 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 B.
Further relief in individual item of COVID-19 after Group of Ministers (GoM) submits report on 8 June 2021

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.

OTHER RELIEFS ON GOODS
To support the LympahticFilarisis (an endemic) elimination programme being conducted in
collaboration with WHO, the GST rate on Diethylcarbamazine (DEC) tablets has been
recommended for reduction to 5% (from 12%).
Certain clarifications/clarificatory amendments have been recommended in relation to GST rates.
Major ones are, –
Leviability of IGST on repair value of goods re-imported after repairs
GST rate of 12% to apply on parts of sprinklers/ drip irrigation systems falling under tariff heading
8424 (nozzle/laterals) to apply even if these goods are sold separately.

SERVICES
To clarify those services supplied to an educational institution including anganwadi(which provide
pre-school education also), by way of serving of food including mid- day meals under any midday
meals scheme, sponsored by Government is exempt from levy of GST irrespective of funding of
such supplies from government grants or corporate donations.
To clarify these services provided by way of examination including entrance examination, where fee
is charged for such examinations, by National Board of Examination (NBE), or similar Central or
StateEducational Boards, and input services relating thereto are exempt from GST.
To make appropriate changes in the relevant notification for an explicit provision to make it clear that
land owner promoters could utilize credit of GST charged to them by developer promoters in respect
of suchapartments that are subsequently sold by the land promotor and on which GST is paid. The
developer promotor shall be allowed to pay GST relating to such apartments any time before
or at the time of issuance of completion certificate.
To extend the same dispensation as provided to MRO units of aviation sector to MRO units of
ships/vessels so as to provide level playing field to domestic shipping MROs vis a vis foreign MROs
and accordingly, –
GST on MRO services in respect of ships/vessels shall be reduced to 5% (from 18%).
PoS of B2B supply of MRO Services in respect of ships/ vessels would be location of recipient of
service
To clarify that supply of service by way of milling of wheat/paddy into flour (fortified with
minerals etc. by millers or otherwise )/rice to Government/ local authority etc.for distribution of
such flour or rice under PDS is exempt from GST if the value of goods in such composite
supply does not exceed 25%. Otherwise, such services would attract GST at the rate of 5% if
supplied to any person registered in GST, including a person registered for payment of TDS.
To clarify that GST is payable on annuity payments received as deferred payment for
construction of road. Benefit of the exemption is for such annuities which are paid for the service
by way of access to a road or a bridge.

To clarify those services supplied to a Government Entity by way of construction of a rope-way
attract GST at the rate of 18%.
To clarify that services supplied by Govt. to its undertaking/PSU by way of guaranteeing loans taken
by such entity from banks and financial institutions is exempt from GST.

MEASURES FOR TRADE FACILITATION:

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

    To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the
    tax periods from July, 2017 to April, 2021 has been reduced / waived as under: –
    i. 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;
    ii. late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return
    for other taxpayers;
    The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are
    furnished between 01.06.2021 to 31.08.2021.

2. Rationalization of late fee imposed under section 47 of the CGST Act:

To reduce burden of late fee on smaller taxpayers, the upper cap of late fee is being
rationalized to align late fee with tax liability/ turnover of the taxpayers, as follows

A. The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 to be
capped, per return, as below:

(i) For taxpayers having nil tax liability in GSTR-3B or nil outward supplies
in GSTR-1, the late fee to be capped at Rs 500 (Rs 250 CGST + Rs 250 SGST)
(ii) For other taxpayers:
a. For taxpayers having Annual Aggregate Turnover (AATO) in
preceding year upto Rs 1.5 crore, late fee to be capped to a maximum
of Rs 2000 (1000 CGST+1000 SGST);
b. For taxpayers having AATO in preceding year between Rs 1.5 crore
to Rs 5 crore, late fee to be capped to a maximum of Rs 5000 (2500
CGST+2500 SGST);
c. For taxpayers having AATO in preceding year above Rs 5 crores, late
fee to be capped to a maximum of Rs 10000 (5000 CGST+5000
SGST).

B. The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers to
be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return, if tax liability is nil in
the return, and Rs 2000 (Rs 1000 CGST + Rs 1000 SGST) per return for others.

C. Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to Rs.50/-
per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum of Rs 2000/-
(Rs. 1,000 CGST + Rs 1,000 SGST) per return.

All the above proposals to be made applicable for prospective tax periods.

3. 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:

A. For small taxpayers (aggregate turnover upto Rs. 5 crore)

a. March & April 2021 tax periods:
i. 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.
ii. 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.
iii. NIL rate of interest for 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.

b. For May 2021 tax period:
i. 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.
ii. 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

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

A lower rate of interest @ 9% for first 15 days after the due date of filing return in FORM
GSTR-3B for the tax period May, 2021.
ii. 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.

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

  1. Extension of due date of filing GSTR-1/ IFF for the month of May 2021
    by 15 days.
  2. Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
  3. Extension of 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.

D. 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 15 April, 2021 to 29 June, 2021, to be extended upto 30
June, 2021, subject to some exceptions.
[Wherever the timelines for actions have been extended by the Hon’ble Supreme
Court, the same would apply]

4. Simplification of Annual Return for Financial Year 2020-21:

i. Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021 to be
notified. This would ease the compliance requirement in furnishing reconciliation statement
in FORM GSTR-9C, as taxpayers would be able to self-certify the reconciliation statement,
instead of getting it certified by chartered accountants. This change will apply for Annual
Return for FY 2020-21.
ii. The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for
taxpayers having aggregate annual turnover upto Rs 2 Crore;
iii. The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be
filed by taxpayers with annual aggregate turnover above Rs 5 Crore.

  1. Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017,
    providing for payment of interest on net cash basis, to be notified at the earliest.

OTHER MEASURES
i. GST Council recommended amendments in certain provisions of the Act so as to make the
present system of GSTR-1/3B return filing as the default return filing system in GST.

Note: The recommendations of the GST Council have been presented in this release in simple
language for information of all stakeholders. The same would be given effect through relevant
Circulars/Notifications which alone shall have the force of la

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COVID-19 Relief under GST Law

COVID-19 Relief under GST Law

Because of the challenges faced by taxpayers in meeting the statutory and regulatory compliances under GST law due to the outbreak of the second wave of COVID-19 , The Central Board of Indirect Taxes and Customs (CBIC), vide various notification published on 1st May 2021, notified multiple reliefs under GST laws.

The Government has announced various reliefs for taxpayers in the form of extension of the due date of GSTR-1 , GSTR-4 & ITC-04 , waiver of late fees for GSTR-3B , relaxation in the interest rate on delay in filing GSTR-3B, extension in a time limit of various actions under GST. The current article briefs the COVID-19 Relief under GST Law

Synopsis of Notifications

The various relief announcements under the GST Law on account of the second wave of COVID-19 outbreak are as follows:

  • The Government has extended the due dates of filing details of outward supplies under FORM GSTR-1 and IFF for April by 15 days.
  • The due date of filing of Annual Return by composition dealers under FORM GSTR-4 for FY 2020-21 has been extended from 30th April 2021 to 31st May 2021.
  • The due date of filing of a declaration of movement of goods to or from job worker under FORM ITC-04 for Jan-March, 2021 quarter has been extended from 25th April 2021 to 31st May 2021.
  • The due dates for GSTR-5, GSTR-6, GSTR-7 & GSTR-8, and other GST compliances are also extended.
  • Concessional rates of interest instead of the normal rate of interest of 18% per annum for delayed tax payments have been prescribed in the following cases
    • For registered persons having aggregate turnover above Rs. 5 Crore
    • For registered persons having aggregate turnover upto Rs. 5 Crore
    • For registered persons who have opted to pay tax under the composition scheme
  • For registered persons having aggregate turnover above Rs. 5 Crore, a Late fee waived for 15 days in respect of returns in FORM GSTR-3B furnished beyond the due date
  • For registered persons having aggregate turnover upto Rs. 5 Crore: Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date

Extension of due dates for filing GST return in Form GSTR-1

Vide notification no. 12/2021 – Central Tax dated 1st May, the due date for filing GST returns in Form GSTR-1for the tax period of April  2021 has been notified. The same is tabulated hereunder

Sl.No. Return Type To be filed by Tax period Due Date Due Date Extended till
1 Form GSTR-1 (Monthly) Normal Taxpayer filing Monthly returns April 2021 11.05.2021 26.05.2021
2 Form IFF Normal Taxpayers under QRMP Scheme April 2021 13.05.2021 28.05.2021

Extension of due dates for Filing of Returns by Composition, NRTP, ISD, TDS & TCS Taxpayers

The Government has also extended the due date of furnishing of Returns by Composition, NRTP, ISD, TDS & TCS Taxpayers to 31st May 2021.

Sl.No. Return Type To be filed by Tax period Due Date Due Date Extended till
1 GSTR-4 Composition Taxpayers (Annual Return) FY 2020-21 30th April 2021 31st May 2021
2 GSTR-5 Non-Resident Taxpayers (NRTP) March/ April 2021 20th April/ May 2021 31st May 2021
3 GSTR-6 Input Service Distributors (ISD) April 2021 13th May 2021 31st May 2021
4 GSTR-7 Tax Deductor at Source (TDS deductor) 10th May 2021 31st May 2021
5 GSTR-8 Tax Collectors at Source (TCS collectors) 10th May 2021 31st May 2021

Due Date Extension for Filing of Form ITC-04

The due date for filing Form GST ITC-04 for the Jan-March, 2021 quarter has been extended from 25th April 2021 to 31st May 2021. The Form ITC-04 is to be filed by the Principal/Manufacturer for goods sent/received/supplied from Job Worker.

Click here for official notification pertaining to COVID-19 Relief under GST Law

Reduction in Interest Rate and Waiver of Late fees

Filing of Form GSTR-3B

The Government has provided relief by way of reduction in the interest rate and waiver of late fees for delay in filing of GSTR-3B for the period March and April 2021. The relief of reduction of the rate of interest and waiver of late fees is summarized as under:

For registered persons having aggregate turnover above Rs. 5 Crore:

Late fee waived for 15 days in respect of returns in FORM GSTR-3B furnished beyond the due date for tax periods March 2021 and April 2021, due in April 2021 and May 2021 respectively

For registered persons having aggregate turnover Upto Rs. 5 Crore:

Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March 2021 and April 2021 (for taxpayers filing monthly returns) due in April 2021 and May 2021 respectively / and for period Jan-March, 2021 (for taxpayers filing quarterly returns under QRMP scheme) due in April 2021

Filing of Form CMP-08

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 Interest6
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%

Relaxation in availing of Input Tax Credit

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 April and relaxation has been given in respect to April’s month. The condition of Rule 36(4) would apply cumulatively in May 2021 for both April and May 2021.

Other reliefs provided under GST

The Government has provided several 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 Law, which falls during the period from 15th April 2021 to 30th May 2021, has been extended up to 31st May 2021.

The Press Release issued by the Central Board of Indirect Taxes & Customs on 2nd May 2021 is attached here for reference:

COVID-relief-under-GST

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