GST Council Meeting decision – a complete guide

GST Council Meeting

Summary of GST notification are tabulated below: –

Relevant Notifications (Central Tax dated 01.05.2021)

Notification No. Central TaxDescription
08/2021Interest Relaxation for Tax Payable of Mar-Apr-21
09/2021Late Fee Relaxation for GSTR3B of Mar-Apr-21
10/2021Extension of GSTR-4 for FY 2020-21
11/2021Extension of filing ITC-04 for Q4 of FY 2020-21
12/2021Extension for GSTR-1 Due Dates for Apr-21
13/2021Relaxation for Rule 36(4) and furnishing IFF for Apr-21
14/2021Other relaxations for Completion or Compliance of Action under GST

Relevant Notifications (CT dated 01.06.2021)

Notification No. Central TaxDescription
16/2021Retrospective Amendment to Section-50
17/2021 Due Date Extension GSTR1 for May’2021
18/2021 Reduced ROI for Mar’21 to May’21
19/2021GST Amnesty Scheme and Rationalized Late Fees
20/2021Rationalized Late Fees for GSTR1
21/2021Rationalized Late Fees for GSTR4
22/2021Rationalized Late Fees for GSTR7
23/2021Taxpayers Exempted from E-Invoicing
24/2021Various Compliances Extended
25/2021GSTR4 Extended for 2020-21
26/2021 ITC04 for QE Mar’2021 Extended
27/2021Extended IFF, Relaxations to Rule 36(4)

INTEREST ON NET CASH BASIS

Section 50 of the CGST Act, 2017 which is also replicated in SGST Acts, contains the provision for levy of interest on delay or non-payment of GST.

In this regard, the Quantum of interest to be levied was under dispute from first day of introduction of GST. The dispute was whether GST will be charged before adjusting ITC (on Gross Liability) or after adjusting ITC (Net Liability).

GST Council in its 43rd Meeting held that W.E.F 01.07.2017 – Retrospective amendment in section 50 of the CGST Act, providing for payment of interest on net cash basis (after adjusting ITC) .

Read Also: GSTN issued FAQs on Aadhaar Authentication for Existing Taxpayers on GST Portal

Interest Waiver as per Notification 08/2021 and relaxation as recommended by 43rd GST Council

For Turnover > 5 Crores in preceding FY in case of GSTR 3B Return.

    Returns    Due DateInterest @ 9%Interest @ 9%Late Fees @ 18%
FromToAfter
Mar-202120.04.202121.04.202105.05.202105.05.2021
Apr-202120.05.202121.05.202104.06.202104.06.2021
May-202120.06.202121.06.202105.07.202105.07.2021

If return not filed within due dates, then late fees @ Rs. 50/- (Nil Return: Rs. 20/-) per day will be applicable from the next day after the due date as may be prescribed/specified.

For Turnover up to 5 Cr. in Preceding FY in case of GSTR 3B Return

Category A States

TaxpayerMonthsDue DateInterest @ NILInterest @ NILInterest @ 9%Interest @ 9%Late Fees @NILLate Fees @NIL
     From    To  FromToFrom  To
MonthlyMar-202120.04.202121.04.202105.05.202106.05.202119.06.2021 *21.04.202120.05.2021 
MonthlyApr-202120.05.202121.05.202104.06.202105.06.202104.07.2021 *21.05.2021 19.06.2021 
MonthlyMay-202120.06.202121.06.202105.07.202106.07.202120.07.2021 *21.06.2021 20.07.2021 
QuarterlyMar-202122.04.202123.04.202107.05.202108.05.202121.06.2021 *23.04.2021 22.05.2021 
QuarterlyApr-202125.05.202126.05.202109.06.202110.06.202109.07.2021 * N.A  N.A
QuarterlyMay-202125.06.202126.06.202110.07.202111.07.202125.07.2021 *  N.A  N.A

*thereafter 18% and Category A: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep

For Turnover up to 5 Cr. in Preceding FY in case of GSTR 3B Return

Category B States

TaxpayerMonthsDue DateInterest @ NILInterest @ NILInterest @ 9%Interest @ 9%Late Fees @NILLate Fees @NIL
     From    To  FromToFrom  To
MonthlyMar-202121.04.202121.04.202105.05.202106.05.202119.06.2021 *21.04.202119.06.2021 
MonthlyApr-202121.05.202121.05.202104.06.202105.06.202104.07.2021 *21.05.2021 04.07.2021 
MonthlyMay-202121.06.202121.06.202105.07.202106.07.202120.07.2021 *21.06.2021 20.07.2021 
QuarterlyMar-202125.04.202125.04.202109.05.202110.05.202123.06.2021 *25.04.2021 23.06.2021 
QuarterlyApr-202126.05.202126.05.202109.06.202110.06.202109.07.2021 * N.A  N.A
QuarterlyMay-202126.06.202126.06.202110.07.202111.07.202125.07.2021 *  N.A  N.A

*thereafter 18% and Category B: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of J&K, Ladakh, Chandigarh or Delhi.

Relaxations to Composition Taxpayers

FormFrequencyDueDateInterest @ NILInterest @ NILInterest @ 9%Interest @ 9%
   FromToFromTo
CMP-08 (Self assessed tax)Quarterly (Mar-2021)18.04.202119.04.202103.05.202104.05.202117.06.2021 *

*thereafter 18%

Extended Due Dates for GSTR-1, IFF and GSTR 4

FormPeriodDue DateDue Date
NormallyRevised
GSTR-1Apr-2111.05.202126.05.2021
IFFApr-2113.05.202128.05.2021
GSTR-1May-2111.06.202126.06.2021
IFFMay-2113.06.202128.06.2021
GSTR-4FY 2020-2130.04.202130.06.2021

Read Also: GST on Gold – Rate, ITC, E-way bill and exemption

GST Amnesty Scheme for Late Fees waiver as per 43rd GST Council recommendation

GSTR 3B:

PeriodsTax LiabilityMaximum Limit
July-17 To Apr-21Nil500/- per return
July-17 To Apr-21Others1000/- per return

Note : – IF GSTR 3B filed from 01.06.2021 to 31.08.2021

GSTR 3B & GSTR 1:

TaxpayerMaximum Late Fees (C+S)
Nil-Tax Liability500/- per return
T/O upto 1.5 Cr2,000/- per return
T/O 1.5 Cr to 5 Cr5,000/- per return
T/O > 5 Cr10,000/- per return

Note: The reduced late fees are applicable from June-2021 returns & T/O shall be considered of Preceding Financial Year.

GSTR 4 :- Composition Return

Tax LiabilityMaximum Late Fees (C+S)
Nil500/- per return
Others2,000/- per return

Note: Benefit available from 2020- 21 returns.

GSTR 7 :- TDS Return

Tax LiabilityMaximum Late Fees (C+S)
Per Day50/- per return
Maximum2,000/- per return

Note: Benefit available from June’21 returns.

Other Relaxations

  • Due date for filing ITC04 (Goods dispatched to /received from Job work) for the Q4 (Jan-Mar) of 2020-21 has been extended to 30.06.2021.
  • Government  Departments    and  local  authorities                         are exempted  from E-Invoicing provisions
  • Rule  36(4) pertain to restriction of ITC shall apply cumulatively for the period April,  May and June 2021 in the return FORM GSTR-3B for the tax period June-2021
  • The time limit for completion of action of verification by the proper officer of the application for GST registration and its approval (Rule-9 of CGST rules pertaining to Verification of the Application and Approval) falls between 01.05.2021 to 30.06.2021 has been extended to 15.07.2021.
  • Taxpayers registered under Companies Act can furnish returns by using EVC instead of DSC till 31.08.2021

TIME LIMIT EXTENDED

Whose last date of completion falls between 15th April to 29th June is extended to 30th June 2021

1.Completion of any proceeding or passing of any order or issuance of any of the following:

  • Notice,Intimation,Notification
  • Sanction and Approval(by any authority, commission or tribunal)

2. Filing of any Appeal ,Reply and Application

3. Furnishing of any

  1. Report
  2. Document
  3. Return
  4. Statement or such other record

4. Refund Orders under Section 54(5) and Section 54(7) shall be extended up to 15 days after the receipt of reply to the notice OR 30th June-2021 (W.E. later)

NO BENEFIT OF EXTENSION IN FOLLOWING THE SECTION

Sec 12 to 15              Time and Value of Supply Sec 25                 Procedure for Registration

Sec 27                      CTP & NRTP Provisions

Sec 31                     Tax Invoice Provisions

Sec 37                      Filing GSTR1

Sec 47 & Sec 50    Late Fees and Interest

Sec 68                     Inspection of Movement of Goods

Sec 69                     Power to Arrest

Sec 90                     Liability of Partners of firm to pay tax

Sec 122                   Penalty for certain offences

Sec 122 Detention, seizure, & release of goods & conveyance in transit

Read Also: GST on COVID Related Items 2021- Rate, ITC, HSN code & exemption

Payment of GST

The author of the above article is CA Jayprakash Pandey. CA Jayprakash Pandey is a Practicing CA under the firm name Jayprakash P & Company with Office at Mumbai, having 5+ years of professional experience, excellence in the field of TAX and audit services. If you have any query then author can be reached out – [email protected]

Disclaimer: The purpose of this is to share knowledge and it is for education purpose only. This does NOT constitute NOR does this form part of neither it is to be construed as, A LEGAL OPINION. The analysis is solely based on the reading abilities of the Author. They may be correct/incorrect as per you. No representation or warranty, express or implied, is made or given in respect of any information provided. UNDER NO circumstances should any recipient rely on this communication as a basis for any legal decision. The views expressed are of personal to the author. They do not reflect the views of any organization he may be directly/indirectly associated with. Neither author nor any of its affiliates accepts any legal liability, or responsibility, for, or provides any assurance or guarantee of accuracy, authenticity, completeness, correctness, dependability, reliability, suitability or timeliness of, any part of this article. The contents of this article are based only on the understanding of the Law, Rules, Notifications, etc. of the author and THEY ARE NOT BASIS FOR ANY LEGAL OPINION.
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