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Govt grants GST relief to businesses amid 2nd Covid wave. Details here

In view of the challenges faced by businesses in fulfilling the statutory and regulatory compliances under GST law due to Covid-19, the government has issued notifications to provide several relief measures. Here is all you need to know.

UPDATED: May 3, 2021, 13:27 IST

The finance ministry has issued several notifications to provide relief to businesses in view of the second wave of Covid-19, which has hit economic activity in most states.

The government has issued notifications to provide relief to businesses in fulfilling the statutory and regulatory compliances under GST law due to Covid-19. These measures are explained below:

REDUCTION IN RATE OF INTEREST

Concessional rates of interest in lieu of the normal rate of interest of 18 per cent per annum for delayed tax payments have been prescribed in the following cases:

For registered persons having aggregate turnover above Rs 5 crore: A lower rate of interest of 9 per cent for the first 15 days from the due date of tax payment and 18 per cent thereafter for the tax payable for March 2021 and April 2021, payable in April 2021 and May 2021 respectively, has been notified.

Read | At Rs 1.23 trillion, GST collection for March sets new record

For registered persons having aggregate turnover up to Rs 5 crore: 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 period’s 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: NIL rate of interest for first 15 days from the due date of payment of tax and 9 per cent for the next 15 days, and 18 per cent thereafter has been notified for the tax payable for the quarter ending March 31, 2021, payable in April 2021.

WAIVER OF LATE FEE

For registered persons having aggregate turnover above Rs 5 crore: Late fee 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 April 2021 and May 2021 respectively.

For registered persons having aggregate turnover up to Rs 5 crore: Late fee 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.

FILING DATE EXTENSION

The due date of filing FORM GSTR-1 and IFF for the month of April (due in May) has been extended by 15 days. Filing FORM GSTR-4 for FY2020-21 has been extended from April 30, 2021, to May 31, 2021.

The due date of furnishing FORM ITC-04 for the January-March, 2021 quarter has been extended from April 25, 2021, to May 31, 2021.

AMENDMENTS IN CGST RULES

Relaxation in availing of ITC under Rule 36(4): The 105 per cent cap on availing of ITC in FORM GSTR-3B to be applicable on a 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 27.04.2021 to 31.05.2021.

Extension in statutory time limits under section 168A of the CGST Act: The time limit for completion of various actions by any authority or by any person under the GST Act, which falls during the period from April 15, 2021, to May 30, 2021, has been extended to May 31, 2021, subject to some exceptions as specified in the notification.

Sourcehttps://www.indiatoday.in/business/story/govt-grants-gst-relief-to-businesses-amid-2nd-covid-wave-details-here-1798261-2021-05-03

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