Mazars Tax Update | Edition 02.21

The GST council, at its 43rd meeting held on 28 May 2021 has made the following recommendations and notified the same with various notifications issued under Goods & Service tax Act 2017 & Custom Act 1962 as on 31st May 2021 & 01st June 2021:

COVID-19 relief measures

• Specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., has been exempted from Integrated Goods and Services Tax (IGST), even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid up to 31 August 2021.
• IGST exemption on the above goods, when imported free of cost, is also extended till 31 August 2021.
• Exemption has been given on custom duty and health cess on import of “Amphotericin B” till 31^st August 2021.

Trade facilitation measures

Amnesty scheme

• Amnesty scheme in relation to late fee for pending GST returns from July 2017 to April 2021:
  • Late fee capped to a maximum of INR 500 (INR 250 each under CGST and SGST) per return for taxpayers having no GST liability
  • Late fee capped to a maximum of INR 1,000 (INR 500 each under CGST and SGST) per return for other taxpayers
  • The reduced late fee would be applicable if Form GSTR-3B is filed between 1 June 2021 to 31 August 2021

Interest

• For prospective tax periods, the following recommendations have been made for taxpayers having aggregate turnover of more than INR 5 crores:
  • A lower rate of interest @ 9% for first 15 days after the due date of filing Form GSTR-3B for March, April & May 2021 and 18% thereafter.
• For prospective tax periods, the following recommendations have been made for taxpayers having aggregate turnover of upto INR 5 crores:
  • Nil interest rate for the first 15 days after the due date of filing Form GSTR-3B for March, April & May 2021, after that a lower rate of interest @ 9% for first next 45 days and 18% thereafter.
• The above interest provisions shall be deemed to have come into force with effect from the 18^th day of May 2021.

Late fee

• For prospective tax periods, the following recommendations have been made for taxpayers having aggregate turnover of more than INR 5 crores:
  • Waiver of late fee for delay in filing Form GSTR-3B for March, April & May 2021 for 15 days from the due date of filing such return
• For prospective tax periods, the following recommendations have been made for taxpayers having aggregate turnover of upto INR 5 crores:
  • Waiver of late fee for delay in filing Form GSTR-3B for March 2021 for 60 days, April 2021 for 45 days and May 2021 for 30 days from the due date of filing such return.
• Government has also notified that the late fee payable under section 47 of the said Act, for the period/Quarter ending June 2021 onwards, who fail to furnish returns in FORM GSTR 1/3B, shall stand upto as follows:

The above late fee provisions shall be deemed to have come into force with effect from the 20^th day of May 2021.

Other relaxations

• Late fee for delay in furnishing of Form GSTR-7 to be reduced to INR 50 per day (INR 25 each under CGST and SGST) up to a maximum of INR 2,000 (INR 1,000 each under CGST and SGST) per return.
• Extension of due date of filing GSTR-1 / Invoice Furnishing Facility (IFF) for May 2021 by 15 days, i.e., the extended due date is 26^th/28^th June 2021.
• Extension of due date of filing ITC-04 for quarter ending March 2021 to 30 June 2021.
• Cumulative application of availing input tax credit on presumptive basis for April, May, and June 2021 in the GST return for June 2021.
• Allowing filing of returns by companies using Electronic Verification Code instead of Digital Signature Certificate till 31 August 2021.
• Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls from 15 April 2021 to 29 June 2021, to be extended up to 30 June 2021, with exceptions. This shall be deemed to have come into force with effect from the 30^th day of May 2021.