May 12, 20212 min read

Govt grants GST relief to businesses amid the 2nd Covid wave. Details here

The Finance Ministry has given a few notifications to give alleviation to businesses considering the second wave of Covid-19, which has hit the economic activity in many states.

The government has issued notifications to provide relief to businesses in fulfilling the statutory and regulatory compliances under GST law due to Covid-19. These actions are clarified below:

REDUCTION IN RATE OF INTEREST

Concessional rates of interest instead of the normal rate of interest of 18 percent per annum for delayed tax payments have been prescribed in the following cases:

● For registered persons having aggregate turnover above Rs 5 crore: A lower rate of interest of 9 percent for the first 15 days from the due date of tax payment and 18 percent thereafter for the tax payable for March 2021 and April 2021, payable in April 2021 and May 2021 respectively, has been notified. ● For registered persons having aggregate turnover up to Rs 5 crore: Nil rate of interest for the first 15 days from the due date of payment of tax, 9 percent for the next 15 days, and 18 percent thereafter, for both normal taxpayers and those under QRMP scheme. ● For registered persons who have opted to pay tax under the composition scheme: NIL rate of interest for first 15 days from the due date of payment of tax and 9 percent for the next 15 days, and 18 percent thereafter has been notified.

WAIVER OF LATE FEE

● 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 up to 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 due in April 2021 and May 2021 respectively.

FILING DATE EXTENSION

The due date of filing FORM GSTR-1 and IFF for April has been extended by 15 days. Filing FORM GSTR-4 for FY2020-21 has been extended from April 30, 2021, to May 31, 2021. The due date of furnishing FORM ITC-04 for the January-March, 2021 quarter has been extended from April 25, 2021, to May 31, 2021.

AMENDMENTS IN CGST RULES

Relaxation in availing of ITC under Rule 36(4): The 105 percent cap on availing of ITC in FORM GSTR-3B to be applicable on a cumulative basis for period April and May 2021, to be applied in the return for tax period May 2021. Otherwise, rule 36(4) is applicable for each tax period. The filing of GSTR-3B and GSTR-1/IFF by companies using electronic verification code has already been enabled for the period from 27.04.2021 to 31.05.2021.

Extension in statutory time limits under section 168A of the 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 April 15, 2021, to May 30, 2021, has been extended to May 31, 2021, subject to some exceptions as specified in the notification.