GST Amnesty Scheme- Relaxation, Extensions & Late fees waiver (Read Notification)

Recently the GST council in 43rd council meeting has announced GST Amnesty Scheme 2021 and provides big relief by announcing waiver/reduced late fees and interest. Apart from reduction/rationalization in late fees and interest for pending returns, Due dates for various compliance like GSTR-1, GSTR 3B, IFF, GSTR-4, ITC-04, Cumulative application of rule 36(4), etc has been extended.

The Govt of India on 1st June 2021 as issued a total of 15 Notifications from Notification No. 15 /2021 – Central Tax to Notification No. 27 /2021 – Central Tax, Notification No. 02/2021 – Integrated Tax, and Notification No. 02/2021 – Union Territory Tax.

In this article we have covered all the extension, relaxation, late fee waiver and amnesty scheme benefits.

Delayed Interest Liability Only On Net GST Payment/ Net cash liability

Retrospective amendment has been made in Sec 50 of The CGST Act requiring Interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date only on that portion of the tax which is paid by debiting the electronic cash ledger i.e., Charge interest for delayed payment of tax on net cash liability.

This provision has been notified to be effective from 01st June 2021.

Due date for furnishing GSTR-1 Extended for the month of March 2021

In exercise of the power conferred under section 168 of the CGST Act, 2017, the government on the recommendation of council hereby extends the due date for furnishing details of outward supplies in Form GSTR-1 for the month of May 2021 from 11th June, 2021 to 26th June, 2021.

Reduction in Interest Rate for delayed payment of GST

Reduction in Interest Rate for delayed payment of GST has been lowered as follows:

Category of TaxpayerApplicable Interest RatesPeriod of Reduction
Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year who are liable to furnish the GSTR3B Monthly9 per cent for the first 15 days from the due date and 18 per cent thereafterMarch, 2021, April, 2021 and May, 2021
Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the GSTR3B MonthlyNil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafterMarch, 2021
 Nil for the first 15 days from the due date, 9 per cent for the next 30 days, and 18 per cent thereafterApril, 2021
 Nil for the first 15 days from the due date, 9 per cent for the next 15 days, and 18 per cent thereafterMay, 2021
Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the GSTR3B QuarterlyNil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafterQuarter ending March, 2021

This notification shall be deemed to have come into force with effect from the 18th day of May, 2021

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Waiver of Late Fees in Furnishing GSTR 3B return

Category of TaxpayerLate Fee WaiverPeriod for which late fee waived
Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year who are liable to furnish the GSTR3B MonthlyFifteen days from the due date of furnishing returnMarch, 2021, April, 2021 and May, 2021
Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the GSTR3B MonthlySixty days from the due date of furnishing returnMarch, 2021
 Forty-five days from the due date of furnishing returnApril, 2021
 Thirty days from the due date of furnishing returnMay, 2021
Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the GSTR3B QuarterlySixty days from the due date of furnishing returnJanuary-March, 2021

Note: The above will be effective from the 20th day of May, 2021

Scheme to provide relief to taxpayers regarding late fee for pending returns

Notification No – No. 19/2021 – Central Tax-dated 01st June 2021

Registered persons who failed to furnish the return in FORM GSTR-3B for the months /quarter of July, 2017 to April, 2021, by the due date but furnishes the said return between the period from the 1st day of June, 2021 to the 31st day of August, 2021, the total amount of late fee under section 47 of the said Act, shall be capped at:

Class of registered personsAmount
Registered persons whose total amount of Tax payable in the said return is nilRs. 500 (250 CGST + 250 SGST)
Registered persons having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year, other than those covered aboveRs. 2,000 (1000 CGST + 1000 SGST)
Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year, other than those covered in first pointRs. 5,000 (2500 CGST + 2500 SGST)

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Capping of late fee imposed under section 47 of the CGST Act

 The late fee for delay in furnishing of FORM GSTR-1 to be capped, per return, applicable from June 2021 onwards, as below

Class of registered personsAmount
Registered persons whose total amount of central tax payable in the said return is nilRs. 500 (250 CGST + 250 SGST)
Registered persons having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year, other than those covered aboveRs. 2,000 (1000 CGST + 1000 SGST)
Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees 5 crores in the preceding financial year, other than those covered in first pointRs. 5,000 (2500 CGST + 2500 SGST)

Capping of Late fee for FORM GSTR 4 for FY 2021-22 onwards

The late fee for delay in furnishing of FORM GSTR 4 for f.y 2021-22 onwards to be capped as follows

where the total amount of  tax payable in the said return is nilRs. 500 (250 CGST + 250 SGST)
Other CaseRs. 2,000 (1000 CGST + 1000 SGST)

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Capping of Late fee for FORM GSTR 7  for the month of June 2021 onwards

The late fee for delay in furnishing of FORM GSTR 7  for the month of June 2021 onwards to be reduced to RS. 50 (Rs. 25 CGST + Rs. 25 SGST) per day and subject to maximum of Rs. 2,000 (Rs. 1,000 CGST + Rs. 1,000 SGST)

Govt department, a local authority do not need to prepare e-invoice

A government department, a local authority do not need to prepare e-invoice and other prescribed documents, in respect of supply of goods or services or both to a registered person.

Time limit for completion of proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval etc extended

This notification shall extend the time limit for completion of various actions like completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action subject to exceptions mentioned in Notification No. 14/2021-Central Tax, dated the 1st May, 2021. If these falls during the period from the 15th day of April, 2021 to the 29th day of June, 2021, the same shall be extended upto the 30th day of June, 2021

Note: This notification shall come into force with effect from the 30th day of May, 2021.

GSTR-4 due date for the F.Y 2020-21

It has extended the due date for furnishing details of outward supplies in Form GSTR-4 for the F.Y 2020-21 to 31st day of July, 2021

Note: This notification shall be deemed to have come into force with effect from the 31St day of May, 2021

Due date extended for FORM GST ITC-04 for Qtr-4 2021

It has extended 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 1 st January, 2021 to 31st March, 2021 to 30th day of June, 2021

Note: This notification shall be deemed to have come into force with effect from the 31St day of May, 2021

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Relaxation for Cumulative application of rule 36(4) up to June 2021

  1. Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed [5 per cent] of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers. However, such condition shall apply cumulatively for the period April, May and June, 2021 and the return in FORM GSTR-3B for the tax period June, 2021 or quarter ending June, 2021, as the case may be.
  • A registered person may furnish such details, for the month of May, 2021, using IFF from the 1st day of June, 2021 till the 28th day of June, 2021
  • Allowing filling of returns by companies using Electronic Verification Code instead of digital signature till 31st day of August, 2021.

Read:

  1. GST Amnesty Scheme (Relief in Late Fees & Interest) 2021 & Return due date extension Announced
  2. ITR, Tax Audit, TDS and various other due dates extended for FY 2020-21 (AY 2021-22):COVID-19 Relaxation (View Circular)
  3. Latest TDS Rate Chart for FY 2021-22 (AY 2022-23)|Pdf Download
  4. Section 194Q Analysis: TDS on Purchase of Goods-Applicability, Threshold, Rate (With 35 FAQ’s)

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