RECOMMENDATIONS OF THE GST COUNCIL IN ITS 43RD MEETING HELD ON MAY 29, 2021
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GST Council met on 28th May 2021 after a huge gap of 7 months. In this 43rd meeting, Council has given various relaxations to taxpayers in order to promote ease of doing business. Through this article, we have tried to highlight some important relaxations and exemptions recommended by the Council.
Interest & Late fee for taxpayers having turnover upto 5 Cr.:
1. For return in Form GSTR-3B and CMP-08 of tax period March, 2021, there will be no interest and late fees till 5th May, 2021, 9% interest and no late fees till 19th June, 2021 and thereafter 18% interest with late fees from 20th June, 2021.
2. For return in Form GSTR-3B of tax period April, 2021, there will be no interest and late fees till 4th June, 2021, 9% interest and no late fees till 4th July, 2021 and thereafter 18% interest with late fees from 5th July, 2021.
3. For payment of tax liability in Form PMT-06 of tax period April, 2021, there will be no interest till 9th June, 2021, 9% interest till 9th July, 2021 and thereafter 18% interest from 10th July, 2021.
4. For return in Form GSTR-3B of tax period May, 2021, there will be no interest and late fees till 5th July, 2021, 9% interest and no late fees till 20th July, 2021 and thereafter 18% interest with late fees from 21st July, 2021.
5. For payment of tax liability in Form PMT-06 of tax period May, 2021, there will be no interest till 10th July, 2021, 9% interest till 25th July, 2021 and thereafter 18% interest from 26th July, 2021.
Interest & Late fee for taxpayers having turnover above 5 Cr.:
For return in Form GSTR-3B of tax period May, 2021, there will be 9% interest with no late fees till 5th July, 2021 and thereafter 18% interest with late fees from 6th July, 2021
The Council is likely to set a maximum limit on the late fee, which is being imposed on the taxpayer per return, which is as follows:
1. For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee to be capped at Rs. 500 (Rs. 250 CGST + Rs. 250 SGST)
2. For taxpayers having Annual Aggregate Turnover (AATO) in preceding year upto Rs 1.5 crore, late fee to be capped to a maximum of Rs. 2,000 (Rs.1,000 CGST+ Rs.1,000 SGST)
3. For taxpayers having Annual Aggregate Turnover (AATO) in preceding year between Rs 1.5 crore to Rs 5 crore, late fee to be capped to a maximum of Rs. 5,000 (Rs. 2,500 CGST+ Rs. 2,500 SGST)
4. For taxpayers having Annual Aggregate Turnover (AATO) in preceding year above Rs 5 crores, late fee to be capped to a maximum of Rs. 10,000 (Rs. 5,000 CGST+ Rs. 5,000 SGST).
Due Date for
1. GSTR-1 / IFF for the month of May-21 extended to 26th June 21 / 28th June 21. 2. GSTR-4 for F.Y. 2020-21 extended to 31st July 21
3. ITC-04 for Mar-21 (Q) extended to 30th June 21
Maximum Late Fee for Past GST Returns (July 2017 to April 2021):
● Cases without Tax Liability: Rs.500 per return.
● Cases with Tax Liability: Rs.1,000 per return.
Benefit available if returns filed between 01.06.2021 and 31.08.2021.
Filing of returns through EVC in case of Companies/LLP allowed till 31st August 21.
Analysis of Relaxation under Section 168A of CGST Act, 2017:
As per notification 14/2021 dated 1st May 2021, a similar extension of time limit of various actions was noticed. With this pressrelease it can be assumedthat all the actions which were specified under notification 14/2021, which falls in the period of 15th Apr 21 to 29th June 21 is extended to 30th June 21.
Thus, it can be accepted that the actions such as passing of any order or issuance of any noticeby any authority, commissioner or tribunal and actions of filing of appeal, reply or report orreturn (excluding the list as specified in the said notification) which were to be taken during the time period of 15th Apr 21 to 29th Jun 21 is to be extended to 30th Jun 21.
Amendments for GSTR-9 and GSTR-9C:
The attestation of CA/CMA for certifying GSTR-9C is no longer mandatory and can be self- attested for the F.Y. 2020-21.
No changes in the requirement of filing GSTR-9 & GSTR-9C have been made in respect to taxpayer’s turnover.
Various exemptions have been granted under this press release:
● Import of COVID related medical oxygen, oxygen concentrators, etc. till 31.08.2021.
● IGST exemption on import of Amphotericin B till 31.08.2021.
● Services supplied to an educational institution by way of serving offood.
● Services provided by way of examination including entrance examination, where fee is charged for such examinations, by National Board of Examination (NBE), or similar Central or State Educational Boards, and input services relating thereto.
● Service by way of milling of wheat/paddy into flour (fortified with minerals etc. by millers or otherwise)/rice to Government/ local authority etc. for distribution of such flour or rice under PDS if the value of goods in such composite supply does not exceed 25%.
In the GST Council Recommendations, it is noticed that the Council wants to amend certain provisions so as to make the present system of GSTR-1& GSTR-3B as the default return filing system, which may eliminate the optional and quarterly returns so as to simplify the process of return filing and get rid off the continuous reconciliations before return filing.
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