Recommendations of 43rd GST council meeting in relation to measures for trade facilitation:

Recommendations of 43rd GST council meeting in relation to measures for trade facilitation:

A. Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns:

FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: -

With Nil Tax Liability: Rs 500/- per return

For Others: Rs 1000/-per return

(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.)

B. Rationalization of late fee imposed under section 47 of the CGST Act:

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

With nil tax liability in GSTR-3B or nil outward supplies in GSTR-1: Rs 500

For others :

Having Annual Aggregate Turnover (AATO) in preceding year upto Rs 1.5 crore: Rs 2000

Having AATO in preceding year between Rs 1.5 crore to Rs 5 crore,: Rs 5000

Having AATO in preceding year above Rs 5 crore; Rs 10000.

II. The late fee for FORM GSTR-4 by composition taxpayers:

With Nil Tax Liability: Rs 500/- per return

For Others: Rs 1000/-per return

III. Late fee payable for delayed furnishing of FORM GSTR-7

To be reduced to Rs.50/- per day and to be capped to a maximum of Rs 2000/- per return.

 (All the above proposals ( in part B)  to be made applicable for prospective tax periods.)

C. COVID-19 related relief measures for taxpayers:

In addition to the relief measures already provided to the taxpayers vide the notifications issued on 01.05.2021, the following further relaxations are being provided to the taxpayers:

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

March & April 2021 tax periods:

1. 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 45 days and 30 days for March,2021 and April, 2021 respectively.
2. Waiver of late fee for delay in furnishing return in FORM GSTR-3B for the tax periods March / QE March, 2021 and April 2021 for 60 days and 45 days respectively, from the due date of furnishing FORM GSTR-3B.
3. 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, and reduced rate of 9% thereafter for further 45 days.

For May 2021 tax period:

1. 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, and reduced rate of 9% thereafter for further 15 days.
2. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B 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)

1. A lower rate of interest @ 9% for first 15 days after the due date of filing return in FORM GSTR-3B for the tax period May, 2021.
2. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax period May, 2021 for 15 days from the due date of furnishing FORM GSTR-3B.

D. Certain other COVID-19 related relaxations to be provided, 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 Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.
6.  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 [Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply]