Synopsis of various notifications issued by CBIC on 01-06-2021 with respect to various recommendations of 43rd GST Council Meeting Held on 28th May 2021

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The 43rd GST council meeting was held on 28th May 2021 through video conferencing. The GST Council has met after more than half year. In view of various challenges faced by Taxpayers GST Council has come up with various recommendations relating to Amnesty scheme, rationalization of late fee and exemption for COVID related goods etc. Some of recommendations made by GST Council have been notified by Ministry of Finance vide Notifications dated 01-06-2021. Detailed analysis of all the notification issued on 1st June 2021 by CBIC is provided below:

 

1. Retrospective Amendment of Section 50:

Government vide Notification No. 16/2021-Central Tax dated 1st June, 2021 has notified Section 112 of Finance Act, 2021 which provides for retrospective amendment in Section 50 of CGST Act 2017 with effect from 01st day of July 2017.  Thus interest will be levied on only net tax liability which is payable in cash i.e. , which is payable by debiting electronic cash ledger.

 

2. Amnesty Scheme under GST:

Government vide Notification No. 19/2021-Central Tax dated 1st June, 2021 brings an Amnesty Scheme to provide relief to tax payers regarding pending GST Returns by reducing maximum late fee to be levied. Amnesty Scheme introduced by government will help in filing of various pending GSTR 3B by taxpayer.

 

Return Period Type of Return Condition Maximum Late Fee
July 2017 to April 2021 GSTR 3B having nil tax liability Return shall be furnished between 01.06.2021 to 31.08.2021 Rs. 500/- (Rs. 250 each for CGST and SGST) per return
July 2017 to April 2021 GSTR 3B with Tax Liability Return shall be furnished between 01.06.2021 to 31.08.2021 Rs. 1,000/- (Rs. 500 each for CGST and SGST) per return

 

3. Rationalization and reduction of Late Fee:

Government has also rationalized and reduced the late fee to be levied for delay in filing of various GST Return u/s 47 for prospective Tax Periods. Reduced late fee for various returns is summarized as under:

 

Notification Type of Return Annual Aggregate Turnover in preceding year Tax Period Maximum Late Fee
Notification No. 19/2021-Central Tax dated 1st June, 2021

 

 

GSTR 3B having Nil Tax Liability NA June, 2021 or quarter ending June, 2021 onwards Rs. 500/- (Rs. 250 each for CGST and SGST) per return
GSTR 3B with Tax Liability Upto Rs 1.5 crore Rs. 2,000/- (Rs. 1,000 each for CGST and SGST) per return
Between 1.5 crore and 5 crore Rs. 5,000/- (Rs. 2,500 each for CGST and SGST) per return
Above 5 crore Rs. 10,000/- (Rs. 5,000 each for CGST and SGST) per return
Notification No. 20/2021-Central Tax dated 1st June, 2021

 

GSTR 1 having Nil Outward Supplies NA Rs. 500/- (Rs. 250 each for CGST and SGST) per return
GSTR 1 with Outward Supplies Upto Rs 1.5 crore Rs. 2,000/- (Rs. 1,000 each for CGST and SGST) per return
Between 1.5 crore and 5 crore Rs. 5,000/- (Rs. 2,500 each for CGST and SGST) per return
Above 5 crore Rs. 10,000/- (Rs. 5,000 each for CGST and SGST) per return
Notification No. 21/2021-Central Tax dated 1st June, 2021 GSTR 4 having Nil Tax Liability NA F.Y. 2021-22 onwards Rs. 500/- (Rs. 250 each for CGST and SGST) per return
GSTR 4 with Tax Liability NA Rs. 2,000/- (Rs. 1,000 each for CGST and SGST) per return
Notification No. 22/2021-Central Tax dated 1st June, 2021 GSTR 7 NA June 21 onwards Rs. 2,000/- (Rs. 1,000 each for CGST and SGST) per return.

 

Late Fees per day also reduced to Rs. 50/- (Rs. 25 each for CGST and SGST) per day per return.

 

Author Comments: In case taxpayers fails to file GSTR 3B for July 2017 to April 2021 till 31st August 2021. Taxpayers may note that maximum late will be Rs. 10,000/- (Rs. 5,000 each for CGST and SGST) per return. Since late fee is rationalized for GSTR 3B for Returns for period of June 2021 or Quarter ending June 2021 onwards.

 

4. Extension of due date of various GST Returns/ Forms and relaxation for delay in filing of returns:

Besides above relief government has also modified earlier Interest and Late Fee relief for tax compliance for Mar 2021 and April 2021 and also notified relief for tax period of May 2021 which is summarized below.

 

Notification Class of Person Tax Period Relief
Notification No. 17/2021-Central Tax dated 1st June, 2021

Applicable w.e.f 01.06.2021

Person who are filing monthly GSTR 1 May 2021 Due date for filing of GSTR 1 has been extended from 11th June 2021 to 26th June 2021
Notification No. 18/2021-Central Tax dated 1st June, 2021

 

Applicable w.e.f. 18th May 2021

 

Person who are filing monthly GSTR 3B and having aggregate turnover up to rupees 5 crores in the preceding financial year March 2021 Interest Rate Relaxation on late payment of GST Liability: –

 Earlier government vide notification dated 01-05-2021 has provided relaxation to taxpayer for late payment of GST for Specified Tax Period which has been modified now.

 

Particulars Earlier Relief Modified Relief
First 15 days: Nil Nil
Next 15 days: 9% 9%
Next 30 days: 18% 9%
Thereafter 18% 18%

 

 

Person who are filing quarterly GSTR 3B and making monthly payment of GST through PMT-06
Person who are filing monthly GSTR 3B and having aggregate turnover up to rupees 5 crores in the preceding financial year April 2021 Interest Rate Relaxation on late payment of GST Liability: –

Earlier government vide notification dated 01-05-2021 has provided relaxation to taxpayer for late payment of GST for Specified Tax Period which has been modified now.

 

Particulars Earlier Relief Modified Relief
First 15 days: Nil Nil
Next 15 days: 9% 9%
Next 15 days: 18% 9%
Thereafter 18% 18%

 

 

Person who are filing quarterly GSTR 3B and making monthly payment of GST through PMT-06
Person who are filing monthly GSTR 3B and having aggregate turnover up to rupees 5 crores in the preceding financial year May 2021 Interest Rate Relaxation on late payment of GST Liability: –

 

First 15 days: – Nil from due date

Next 15 days: – 9%

Thereafter 18%.

 

 

Person who are filing quarterly GSTR 3B and making monthly payment of GST through PMT-06
Person who are filing monthly GSTR 3B and having aggregate turnover of more than rupees 5 crores in the preceding financial year May 2021 Interest Rate Relaxation on late payment of GST Liability: –

 

First 15 days: – 9% will be applicable from due date

Thereafter 18%.

 

Person who are filing quarterly CMP- 08 [Statement for payment of self-assessed tax for Composition Taxpayers] Quarter ending March, 2021 Interest Rate Relaxation on late payment of GST Liability: –

 

Earlier government vide notification dated 01-05-2021 has provided relaxation to taxpayer for late payment of GST for Specified Tax Period which has been modified now.

 

Particulars Earlier Relief Modified Relief
First 15 days: Nil Nil
Next 15 days: 9% 9%
Next 30 days: 18% 9%
Thereafter 18% 18%
Notification No. 19/2021-Central Tax dated 1st June, 2021

 

Applicable w.e.f. 20th May 2021

 

Person who are filing monthly GSTR 3B and having aggregate turnover up to rupees 5 crores in the preceding financial year March 2021 Waiver of Late Fee:

 

Earlier government vide notification dated 01-05-2021 has provided relaxation to taxpayer for late filing of GST Returns for Specified Tax Period which has been modified now.

 

Particulars Earlier Relief Modified Relief
First 15 days Nil Nil
Next 45 days Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return. Nil
Thereafter Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return. Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return.
Person who are filing quarterly GSTR 3B January-March, 2021
Person who are filing monthly GSTR 3B and having aggregate turnover up to rupees 5 crores in the preceding financial year April 2021 Waiver of Late Fee:

 

Earlier government vide notification dated 01-05-2021 has provided relaxation to taxpayer for late filing of GST Returns for Specified Tax Period which has been modified now.

 

Particulars Earlier Relief Modified Relief
First 15 days Nil Nil
Next 30 days Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return. Nil
Thereafter Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return. Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return.

 

 

Person who are filing monthly GSTR 3B and having aggregate turnover up to rupees 5 crores in the preceding financial year May 2021

 

Waiver of Late Fee:

 

First 30 days: Nil

Thereafter: Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return.

 

Person who are filing monthly GSTR 3B and having aggregate turnover of more than rupees 5 crores in the preceding financial year Waiver of Late Fee:

 

First 15 days: Nil

 

Thereafter: Rs. 20/- per day for Nil Return and Rs. 50/- per day for Data return.

Notification No. 24/2021-Central Tax dated 1st June, 2021 Every Registered non-resident taxable person filing GSTR- 5 Due date falling between 15th April 2021 to 29th June 2021 Due date for filing of GSTR 5 extended to 30th June 2021
Every taxable person registered as an Input Service Distributor April 2021 and May 2021 Due date for filing of GSTR 6 extended to 30th June 2021
Every registered person required to deduct tax at source u/s 51 April 2021 and May 2021 Due date for filing of GSTR 7 extended to 30th June 2021
Every Operator who collects tax at source u/s 52 April 2021 and May 2021 Due date for filing of GSTR 8 extended to 30th June 2021
Every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled due to which required to furnish GSTR 10 Due date falling between 15th April 2021 to 29th June 2021 Due date for filing of GSTR 10 extended to 30th June 2021
Notification No. 25/2021-Central Tax dated 1st June, 2021 Person who are registered under Composition scheme Financial Year ending 31st March, 2021 Due date for filing of GSTR -04 has been further extended from 31st May 2021 to 31st July 2021.
Notification No. 26/2021-Central Tax dated 1st June, 2021 Person who are required for furnishing the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker 1st January, 2021 to 31st March, 2021 Due date for filing of ITC -04 has been further extended from 31st May 2021 to 30th June 2021.
Notification No. 27/2021-Central Tax dated 1st June, 2021 Person who are furnishing details of outward supplies made to registered person through IFF May 2021 Due date for furnishing details through IFF has been extended from 13th June 2021 to 28th June 2021

 

5. Relaxation under Rule 36 (4) – Matching of input tax credit to be claimed by Registered person

Rule 36(4) condition of availing the Input tax Credit shall apply cumulatively for the months of April 2021, May 2021 and June 2021 in GSTR 3B of June 2021. Hence Rule 36(4) will not be applicable for ITC to be claimed in the GSTR 3B of April 2021 and May 2021. Adjustment of Rule 36 (4) will be required in the month of June 2021 on cumulative basis for month of April 2021, May 2021 and June 2021.

 

6. Extension of time limit of various compliances under GST Law

The Central Government vide Notification No. 24/2021-Central Tax dated 1st June, 2021 amending the Notification No. 14/2021-Central Tax dated 1st May, 2021 has extended the time limit of various compliances. 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 the said Act, which falls during the period from the 15th day of April, 2021 to the 29th day of June, 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 up to the 30th day of June, 2021, including for the purposes of-

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, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above; 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 Acts stated above;

Exception: –

a) Chapter IV [Time and Value of Supply];

b) sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129;

c) section 39, except sub-section (3), (4) and (5);

d) section 68, in so far as e-way bill is concerned; and

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

 

7. Extension of time limit for Verification of the Application and approval of GST Registration:

The Central Government vide Notification No. 24/2021-Central Tax dated 1st June, 2021 amending the Notification No. 14/2021-Central Tax dated 1st May, 2021 has notified that when any time limit for completion of any action, by any authority or by any person, specified in, or prescribed or notified under rule 9 of the Central Goods and Services Tax Rules, 2017, falls during the period from the 1st day of May, 2021 to the 30th day of June, 2021, and where completion of such action has not been made within such time, then, the time limit for completion of such action, shall be extended up to the 15th day of July, 2021.

 

8. Refund of Tax:

The Central Government vide Notification No. 24/2021-Central Tax dated 1st June, 2021 amending the Notification No. 14/2021-Central Tax dated 1st May, 2021 has extended the time limit for issuing the order of rejecting the refund claim. 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 order in terms of the provisions of sub-section (5), read with sub-section (7) of section 54 of the said Act falls during the period from the 15th day of April, 2021 to the 29th day of June, 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 30th day of June, 2021, whichever is later.

 

9. Filing of Return through EVC:

Government has also allowed taxpayers to file GSTR 1, GSTR 3B and furnish invoices through IFF till 31st August through EVC 2021 vide Notification No. 27/2021-Central Tax dated 1st June, 2021.

 

10. E-Invoicing under GST:

Government vide Notification No. 23/2021-Central Tax dated 1st June, 2021 excluded government departments and local authorities from the required of E-Invoicing under GST.

 

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