Govt eases GST compliance rules for taxpayers to ease the pain of Covid-19 pandemic

Accordingly, delayed tax payments will be subject to lower rates of interest in lieu of the normal rate of interest of 18 per cent. 

For registered persons having aggregate turnover above Rs5 crore a lower rate of interest of 9 per cent for the first 15 days from the due date of payment of tax and 18 per cent thereafter, for the tax payable for that periods.  March 2021 and April 2021, payable in April 2021 and May 2021 respectively.

For registered persons having aggregate turnover up to Rs5 crore, there will be no interest for te first 5 da: Nil rate of interest for the first 15 days from the due date of payment of tax, 9 per cent for the next 15 days, and 18 per cent thereafter, for both normal taxpayers and those under QRMP scheme, for the tax payable for the periods March 2021 and April 2021, payable in April 2021 and May 2021 respectively, has been notified.

For registered persons who have opted to pay tax under the Composition scheme interest has been waived for the first 15 days from the due date of payment of tax and a 9 per cent interest is applicable for the next 15 days, and 18 per cent thereafter.

For registered persons having aggregate turnover above Rs5 crore late fee has been waived for 15 days in respect of returns in FORM GSTR-3B furnished beyond the due date for tax periods March 2021 and April 2021, due in the April 2021 and May 2021, respectively;

For registered persons having aggregate turnover up to Rs5 crore, late fee has been waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March 2021 and April 2021 (for taxpayers filing monthly returns) due in April 2021 and May 2021, respectively, and for period Jan-March 2021 (for taxpayers filing quarterly returns under QRMP scheme) due in April 2021.

Due date of filing FORM GSTR-1 and IFF for April (due in May) has been extended by 15 days.

Due date of filing FORM GSTR-4 for FY 2020-21 has been extended from 30 April 2021 to 31 May 2021.

Due date of furnishing FORM ITC-04 for Jan-March 2021 quarter has been extended from 25 April 2021 to 31 May 2021.

Certain amendments have been made in CGST Rules to provide relaxation in availment of ITC, whereby the 105 per cent cap on availment of ITC in FORM GSTR-3B to be applicable on cumulative basis for period April and May 2021, to be applied in the return for tax period May 2021. Otherwise, rule 36(4) is applicable for each tax period.

The filing of GSTR-3B and GSTR-1/ IFF by companies using electronic verification code has already been enabled for the period from the 27 April 2021 to 31 May 2021.

Extension in statutory time limits 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 15 April 2021 has been extended to 31 May 2021, subject to some exceptions as specified in the notification.