GST Amnesty Scheme (Relief in Late Fees & Interest) 2021 & Return due date extension Announced

The 43rd GST council meeting was held on 28th May 2021. The council has announced GST Amnesty Scheme 2021 and provide big relief by providing waiver /reduced late fees and interest. Apart from reduction/rationalization in late fees and interest for pending returns, Due dates for filing of GSTR-1, GSTR 3B, IFF, GSTR-4, ITC-04, Cumulative application of rule 36(4), etc has been extended. The key recommendations of the council meeting are as follows:

#1. GST Amnesty Scheme to provide relief in late fee for pending GST returns:

Late fees for filing GSTR3B for the tax periods from July 2017 to April 2021 has been reduced/waived as under:

Tax Liability in the Tax PeriodLate Fee Capping (Amount)
Nil tax liabilityMaximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return
If There are Tax LiabilityMaximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return
GST Late Fees Capping

Condition for the above reduced Late fees: 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.

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

Late fee for delay in filing of FORM GSTR-3B and FORM GSTR-1

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

Tax Liability in the PeriodLate Fees in the Period
1. For Nil tax liability in GSTR-3B or Nil outward supplies in GSTR-1Late fee capped at Rs 500 (Rs 250 CGST + Rs 250 SGST)
2. If there are Tax Liability in the Period
a. Taxpayers having Annual Aggregate Turnover (AATO) in the preceding year up to Rs 1.5 croreLate fee capped to a maximum of Rs 2,000 (1,000 CGST+1000 SGST)
b. Taxpayers having AATO in the preceding year between Rs 1.5 crore to Rs 5 croreLate fee capped to a maximum of Rs 5,000 (2,500 CGST+2,500 SGST)
c. Taxpayers having AATO in the preceding year above Rs 5 croresLate fee capped to a maximum of Rs 10,000 (5,000 CGST+5,000 SGST)
GST Late Fees as per the category of Taxpayers

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Late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers

The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers to be capped to:

Tax Liability in the Tax PeriodLate Fee Capping (Amount)
Nil tax liabilityMaximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return
If There are Tax LiabilityMaximum of Rs 2000/- (Rs. 1000/- each for CGST & SGST) per return
GST Late Fees Capping for GSTR 4

Late fee payable for delayed furnishing of FORM GSTR-7

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

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

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#3. Interest & GST Late Fees waiver for March, April & May 2021

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

For the month of March & April 2021:

Waiver/ Reduction of rate of Interest:

  • NIL rate for the 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 for March,2021 and 30 days for April, 2021

Waiver/ Reduction in GST Late Fees:

  • Waiver for delay in filing return in FORM GSTR3B for the month of March 2021 for 60 days from the due date of furnishing FORM GSTR-3B.
  • Waiver for delay in furnishing return in FORM GSTR3B for the tax period April 2021 for 45 days from the due date of furnishing FORM GSTR-3B

Interest Waiver/Reduction on filing of GST CMP 08:

  • 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,
  • Reduced rate of 9% thereafter for further 45 days.

Waiver of Late Fees & Interest for May 2021

Waiver/ Reduction of rate of Interest:

  • 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 15 days.

GST Late Fees waiver for GSTR 3B for the month of May 2021:

Waiver of late fee for delay in filing returns in FORM GSTR3B for taxpayers filing monthly returns for 30 days from the due date of furnishing FORM GSTR-3B.

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

Reduction in rate of Interest for May 2021:

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

Waiver in late fees for delay in filing GSTR 3B for May 2021:

Waiver of late fee for delay in furnishing returns in FORM GSTR3B for the tax period May, 2021 for 15 days from the due date of furnishing FORM GSTR-3B.

Summary GST Amnesty Scheme -Due date extensions & Waiver of Late Fees

Read below the Summary of GST Amnesty Scheme -Due date extensions & Waiver/reduction of Late Fees:

GST Amnesty Scheme Due date extensions Waiverreduction of Late Fees
Summary of GST Due Date Extension & Late Fees Waiver

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#4. Due Date Extension for filing GSTR-1/IFF, GSTR-4, ITC-04 etc.

Certain Other Compliances due date extended as a COVID-19 relaxations, 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 EVC instead of DSC till 31.08.2021

#5. 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 upto 30th June, 2021, subject to some exceptions

Note: Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply

#6. Simplification of Annual Return for Financial Year 2020-21

  1. Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021 to be notified to 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
  2. . 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
  3. 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.

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#7. Other Important Announcement in council meeting

  1. 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. (Notified on 01/06/2021). The retrospective amendment in Section 50 of the CGST Act requiring payment of interest only on net tax liabilities (clause 112 of the Finance Act 2021) has been notified to be effective from 1 June 2021 vide Notification 16/2021 – Central Tax.
  2. GST exemption has been provided on import of all COVID relief materials such as medical oxygen, oxygen concentrators, and other oxygen storage and medicines (whether free of cost or on payment) till 31st August 2021; Also, the medicine for Black fungus – Amphotericin B is included in the exemption list.

Circular Notification for Amnesty Scheme/Extension

Click here to View/Download the GST Amnesty scheme & late fees waiver notification 2021

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Author Profile

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CA Shiwali Shukla
Shiwali Shukla is a member of ICAI since 2018 & She has excelled in Chartered Accountancy & follows an innovative & talented approach towards work, She is also an Ex- Employee of Ernst & Young. She is having the Expertise in the filed of Direct Taxation, Indirect Taxation, Company Law matters & Finance. She is also having more than 3 years of Experience in the same field. & more than 3 years if Experience in the field of Direct as well as Indirect Taxation..

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