COVID - 19 Relief Measures

Athena Knowledge Sharing: AKS | 2021 | 2

 

COVID-19 RELIEF MEASURES

CBIC has in view of the emergent situations being faced by taxpayers on account of second wave of Covid-19, come up with certain reliefs relating to statutory and regulatory compliance matters under various provisions of GST Law. A brief analysis of the Notifications 09/2021 to 14/2021 dated 01.05.2021 are summarized hereunder:

 

1.        GSTR-3B/ GST PMT-06/ GST CMP-08 – Relief from Interest payable on delay payment of tax and Waiver of Late fee payable on delay in filing of return under Section 47 of CGST/SGST Act

 

S.No

Tax period

Relief / Waiver from Interest & Late Fees

Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year

1.

Mar-21

Interest

From due date (20.04.2021) to 05.05.2021 = @ 9%

From 06.05.2021 and onwards = @ 18%

 

Late Fee -Waived off if GSTR-3B filed on or before 05.05.2021

2.

Apr-21

Interest

From due date (20.05.2021) to 04.06.2021 = @ 9% 

From 05.06.2021 and onwards = @ 18%

 

Late Fee -Waived off if GSTR-3B filed on or before 04.06.2021

Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish monthly return

3.

Mar-21

Interest

From due date (20.04.2021) to 05.05.2021 = Nil

From 06.05.2021 to 20.05.2021 = @ 9%

From 21.05.2021 and onwards = @ 18%

 

Late Fee -Waived off if GSTR-3B filed on or before 20.05.2021

4.

Apr-21

Interest

From due date (20.05.2021) to 04.06.2021 = Nil

From 05.06.2021 to 19.06.2021 = @ 9% 

From 20.06.2021 and onwards = @ 18%

 

Late Fee -Waived off if GSTR-3B filed on or before 19.06.2021

Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish Quarterly return (i.e. under Quarterly return Monthly Payment Scheme)

5.

Mar-20

Interest:

For states having due date 22.04.2021

 

From due date to 07.05.2021 = Nil

From 08.05.2021 to 22.05.2021 = @ 9%

From 23.05.2021 and onwards = @ 18%

 

Late Fee -Waived off if GSTR-3B filed on or before 22.05.2021

Interest:

For states having due date 24.04.2021

 

From due date to 09.05.2021 = Nil

From 10.05.2021 to 24.05.2021 = @ 9%

From 25.05.2021 and onwards = @ 18%

 

 

Late Fee -Waived off if GSTR-3B filed on or before 24.05.2021

6.

Apr-20

Interest

From due date (25.05.2021) to 09.06.2021 = Nil

From 10.06.2021 to 24.06.2021 = @ 9% 

From 25.06.2021 and onwards = @ 18%

Composition Taxpayers liable to furnish return under section 10

7.

Quarter ending Mar-21

Interest

From due date (18.04.2021) to 03.05.2021 = Nil

From 04.05.2021 to 18.05.2021 = @ 9%

From 19.05.2021 and onwards = @ 18%

 

 

2.        Extension of Dates

 

S. No

Form to be filed

Tax period

Extended Date

1.

Form GSTR-4

Financial year ending March 2021

31.05.2021

2.

Form GST ITC-04

For goods dispatched to a job worker or received from a job worker, during the period from 01.01.2021 to 31.03.2021

31.05.2021

3.

Form GSTR-1

April 2021

26.05.2021

4.

Form IFF

April 2021

01.05.2021 to 28.05.2021

 

3.        Restriction of Input Tax Credit under rule 36(4) for April and May 2021

 

i.          The restriction laid in sub-rule (4) of Rule 36 relating to maximum 5% of eligible ITC that can be claimed by registered person in respect of invoices, debit notes etc. which have not been uploaded by supplier.

 

ii.       The said condition shall apply cumulatively for the months of April and May 2021 and accordingly, the return in FORM GSTR-3B for the tax period of May 2021 shall be furnished with cumulative adjustment of input tax credit for the said months in accordance with the condition under rule 36(4).

 

4.        Extension of time limit for certain compliances

 

i.          Where any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under CGST, IGST and UTGST Act, which falls during the period from the 15th day of April, 2021 to the 30th day of May, 2021, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall be extended upto the 31st day of May 2021, including for the purposes of-

 

a.        The above extension is inclusive of 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, by any authority, commission or tribunal; or

 

b.        filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the CGST, IGST, UTGST Acts.

 

ii.        The above extension however, shall not apply for compliance of following provisions-

 

a.        Chapter IV – pertains to time and value of supply

b.        Section 10(3) – Lapse of composition scheme if aggregate turnover exceeds limit

Section 25 – Procedure for Registration

Section 27 – Special provisions relating to Casual Taxable Person and Non Resident Taxable Person

Section 31 – Issue of Invoice

Section 37 – Furnishing details of outward supplies (GSTR-1)

Section 47 – Levy of Late Fee

Section 50 – Interest on delayed payment of tax

Section 69 – Power to arrest

Section 90 – Liability of partners of firm to pay tax

Section 122 – Penalty for certain offences

Section 129 – Detention, seizure and release of goods and conveyances in transit

 

c.        Section 39 - Furnishing of returns, except returns under:

 

i.                S. 39(3) – Return for Tax Deducted at Source u/s 51

 

ii.               S. 39 (4) – Return for Input Service Distributor

 

iii.                S. 39 (5) – Non-Resident Taxable Person

 

d.        Section 68 in so far as e-way bill is concerned - Inspection of goods in movement

 

e.        Rules made under the provisions specified at clause (a) to (d) above

 

iii.     Rule 9 provides complete procedure for verification of registration application and approval.  Any action to be taken by the department or applicant during the period from 1st day of May, 2021 to the 31st day of May, 2021 shall be extended upto the 15th day of June, 2021. [Food for thought: For instance, Delhi GST department is working from home since 17th April – What will be the position of registration application for which action to be taken by the department during 17th April to 30th April.]

 

iv.      in cases where a notice has been issued for rejection of refund claim (in full or in part) and where the time limit for issuance of refund sanction/rejection order in RFD-06 falls during the period from the 15th day of April, 2021 to the 30th day of May, 2021, in such cases the time limit for issuance of the said order shall be extended to fifteen days after the receipt of reply to the notice from the registered person or the 31st day of May, 2021, whichever is later.

 

 

By: Adv. (CA) Pawan Arora

Partner, Athena Law Associates

88000 91636, pawan@athenalawassociates.com