Recent Relaxation in Interest & Late Fees under GST
The Department of Revenue has taken several relief measures.
Here are some important information:
- A conditional late fee amnesty scheme brought out in respect of pending returns in FORM GSTR-3B for the tax periods from July, 2017 to April, 2021.
HIGHLIGHTS OF THE SCHEME: –
- Applicable only if GSTR-3B returns for these tax periods are furnished during the period between 01.06.2021 to 31.08.2021;
- Late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;
- Late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers.
- Relaxation in ITC availment under Rule 36(4) – i.e. 105% cap on availing ITC in FORM GSTR-3B – for the months of April, May and June 2021. It shall apply cumulatively for the three months in the month of June GSTR 3B.
- Filing of GSTR-3B and GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature Certificate (DSC), now enabled for the period from the 04.2021 to 31.08.2021.
- Reduction in rate of interest: Concessional rates of interest, in lieu of the normal rate of interest of 18% per annum, for delayed tax payments have been provided for the months of March, April and May, 2021.
HIGHLIGHTS: –
- Taxpayer having aggregate more than 5 crore if files GSTR-3B for the period May’21 within 15 days of due date i.e., till 4th July, the interest on cash liability to be charged @9% p.a. Interest to be charged @18% p.a., if filed thereafter.
- Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period April’21 within 30 days of due date i.e., till 19th June, the interest on cash liability to be charged @9% p.a. Interest to be charged @18% p.a., if filed thereafter.
- Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period May’21 within 15 days of due date i.e., till 4th July, the interest on cash liability to be charged would be NIL, @9% p.a. if filed till 19th July and @18% p.a. if filed thereafter.
Waiver of late fee: Late fee waived for specified number of days in respect of returns in FORM GSTR-3B furnished beyond the due date for tax periods March, April and May 2021, due in the April, May and June 2021 respectively.
HIGHLIGHTS: –
- Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period March’21 within 60 days of due date i.e., till 19th June, the Late fee would be NIL.
- Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period April’21 within 45 days of due date i.e., till 4th July, the Late fee would be NIL.
- Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period May’21 within 30 days of due date i.e., till 19th July, the Late fee would be NIL.