In a major relief to the businesses struggling with the second wave of coronavirus pandemic ravaging the country, the GST Council in its 43rd Meeting held on 28th May 2021 has accorded various compliance related relief for tax payers which inter alia includes relief in filing of GST Returns.
The reliefs granted in regard to filing of GST Returns are briefed as under for ready reference of our readers:
1. Introduction of GST Amnesty Scheme:
The first and foremost relief in this regard is introduction of GST Amnesty Scheme whereby the late fee on delayed filing of GSTR-3B since July, 2017 has been reduced in cases where such returns are filed between 1st June , 2021 to 31st August, 2021. For more details in this regard CLICK HERE.
2. Extension in filing date of GSTR-1 / IFF for May, 2021
Secondly extension has been granted in the due date for filing of GSTR-1 i.e. statement of outward supplies for the month of May 2021 by 15 days. Thus deadline for completing monthly GSTR-1 for the month of May,2021 has been extended by 15 days, to 26th June 2021 from the normal date of 11th June 2021 i.e 11th of succeeding month. Further in case of tax payers who have opted for QRMP Scheme the due date of Invoice Furnishing Facility (IFF) for the month of May , 2021 will now be 28th June, 2021 instead of normal due date of 13th June, 2021.
It is pertinent to mention here that from 1st January 2021, all taxpayers with Annual Aggregate turnover up to Rs 5 Crore have been given an option to file their Form GSTR-1 Statement and Form GSTR-3B return on a quarterly basis under QRMP Scheme. They also have an option to file B2B invoice details in Invoice Furnishing Facility (IFF) for months 1 and 2 of the quarter (eg. April and May) of the quarter in order to pass on the credit, whereas the remaining invoices have to be declared in the Quarterly Form GSTR-1 of Month 3 (e.g. June). Businesses must file GSTR-1 by the 11th day of the next month, detailing the supplies they made during the previous month.
3. Relief in regard to filing of GSTR-3B
As regards GSTR-3B is concerned it is submitted that businesses complete Form GSTR-3B for payment of Goods and Services Tax (GST) on a staggered basis between the 20th and 24th day of the following month.
In regard to filing of GSTR-3B for the month of May, 2021 following relief in regard to late fee and interest has been approved by the GST Council in its meeting held on 28th May, 2021.
A. For small taxpayers (aggregate turnover upto Rs. 5 crore)
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. Thus GSTR-3 can be filed by tax payers who have not opted for QRMP Scheme by 21st July / 23rd July, depending upon State where the tax payer is registered.However they will have to pay interest @9% p.a. for the period after 6th July / 8th July, 2021.
Further following relief has also been proposed for GSTR-3B for March and April, 2021.
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.
Further 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.
B. For large taxpayers (aggregate turnover more than Rs. 5 crore)
- 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.
- 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. Thus GSTR-3B for May, 2021 can be filed by 4th July, 2021, however here interest @ 9% p.a. will apply for period of delay beyond 20th June, 2021 (original due date).
4. Extension in due date of filing of GSTR-4
The GST Council also decided to extend the deadline for composition dealers to file annual returns for fiscal 2020-21 in Form GSTR-4 by three months, till 31st July, 2021.
5. Relief in application of Rule 36(4)
Further while filing of GSTR-3B the tax payers now may not apply Rule 36(4) (ITC Restriction) and can avail eligible ITC as per books. However they will be required to cumulative apply the Rule in the GSTR-3B to be filed for June, 2021. For more details in this regard CLICK HERE.
6. Filing of returns using EVC
Further filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) has now been allowed till 31.08.2021.
It is submitted that no notifications has been published in this regard till now and it is expected to be issued anytime soon.
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CA. Mohammad Salim is an ICAI award winning Chartered Accountant having rich experience of more than 20 years in the field of indirect taxes. He is the Member, Indirect Taxes Committee of PHD Chamber of Commerce and Industry. He is author of four successful books on GST published by Taxmann Publication and is also GST expert on taxmann portal.
