₹ 75,000 crores released to States and UTs with Legislature as GST Compensation shortfall. Almost 50 % of the total shortfall for the entire year released in a single installment
Ministry of Finance has released today ₹75,000 crores to the States and UTs with Legislature under the back-to-back loan facility in lieu of GST Compensation.This release is in addition to normal GST compensation being released every 2 months out of actual cess collection.
Subsequent to the 43rd GST Council Meeting held on 28.05.2021, it was decided that the Central Government would borrow ₹1.59 lakh crore and release it to States and UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation on account of inadequate amount in the Compensation Fund.This amount is as per the principles adopted for a similar facility in FY 2020-21, where an amount of ₹1.10 lakh crore was released to States under a similar arrangement. This amount of ₹1.59 lakh crore would be over and above the compensation in excess of ₹1 lakh crore(based on cess collection) that is estimated to be released to States/UTs with Legislature during this financial year. The sum total of ₹2.59 lakh crore is expected to exceed the amount of GST compensation accruing in FY 2021-22.
All eligible States and UTs (with Legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility. For effective response and management of COVID-19 pandemic and a step-up in capital expenditure all States and UTs have a very important role to play. For assisting the States/UTs in their endeavour, Ministry of Finance has frontloaded the release of assistance under the back-to-back loan facility during FY 2021-22 ₹75, 000 crore (almost 50 % of the total shortfall for the entire year) released today in a single instalment. The balance amount will be released in the second half of 2021-22 in steady instalments.
The release of ₹75,000 crore being made now is funded from borrowings of GoI in 5-year securities, totalling ₹68,500 crore and 2-year securities for ₹6,500 crore issued in the current financial year, at a Weighted Average Yield of 5.60 and 4.25 percent per annum respectively.
It is expected that this release will help the States/UTs in planning their public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects.
The pandemic has impacted the finances of individuals as well the Governments across the globe. The Governments are resorting to various measures to recover the tax collections. To increase the demand for goods or services across the globe, many countries have reduced their tax rates as it will increase spending power, which means more revenue.
In India, the Government has not reduced the tax rates but has given relief measures to the taxpayers by extending due dates and reducing late fees and interest. The tax rates have been reduced only in the case of goods required for the treatment of COVID. Apart from this, the central bank also increased the Fiscal Responsibility and Budget Management (FRMB) limits so that the State Governments can access more funds and spend.
Pandemic is a natural calamity, and to raise more funds, the Governments are exploring new ways and means. As part of it, the Sikkim state has requested for levy of COVID Cess on the Power Sector and Pharma sector for two years. This Cess is in line with the Kerala Flood Cess levied for two years from 2019. In Kerala, the Cess is applicable on intrastate transactions for B2C supplies, and the taxpayers have to file separate returns. The valuation rules have also been amended to exclude the Kerala Floods cess from the levy of GST wide Notification Number 31/2019 – (Central Tax) dated 28th June 2019.
Basis of the decision taken in the 43rd GST Council Meeting, a Group of Ministers, has been constituted, and they were supposed to submit the recommendations with 15 days. The Group of Ministers constituted are
Sh. Basavaraj Bommai Minister for Home Affairs, Karnataka Convener
Sh. Manish Sisodia Deputy Chief Minister, Delhi Member
Sh. T S Singh Deo Minister for Commercial Taxes, Member
Sh. K. N. Balagopal Minister for Finance, Kerala
Sh. Niranjan Pujari Minister for Finance, Odisha
Sh. B. S. Panth Minister for Tourism & Industries, Member Sikkim
Sh. Suresh Kumar Khanna, Minister for Finance, Uttar Pradesh
The Group of Minsters will examine the following
One percent of the turnover of the pharmaceutical sector (excluding the unorganized sector) is imposed for the current year and subsequent two years, up to 2022 &23; and
Rs. 0.1 per unit of power generated is imposed for the current year and subsequent years, up to 2022-23
If the GoM approves the COVID Cess, we can expect similar measures to be raised by other states. Though the tax rate is very nominal but it requires changes in the following areas
a) IT Systems to capture and collect COVID Cess
b) Accounting Ledgers/Chart of Accounts
c) Return filing systems.
d) various documents being generated like Tax Invoice, Purchase Order, Sales Order etc.,
Moreover, these changes are applicable for a particular state, but there should be flexible to adapt to the localized changes in the era of One Nation One Tax and One Market. Though it is tough not not impossible to adapt to the new requirements in the New Normal.
Circular Number 149/05/2021-GST dated 17th June 2021
Representations have been received seeking clarification regarding applicability of GST on the issues as to whether serving of food in schools under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021.
Entry 66 clause (b)(ii) of notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, exempts Services provided to an educational institution, by way of catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory. This entry applies to pre-school and schools.
Accordingly, as per said entry 66, any catering service provided to an educational institution is exempt from GST. The entry further mention that such exempt service includes mid- day meal service as specified in the entry. The scope of this entry is thus wide enough to cover any serving of any food to a school, including pre-school. Further, an Anganwadi interalia provides pre-school non formal education. Hence, aganwadi is covered by the definition of educational. institution (as pre-school_.
Accordingly, as per recommendation of the GST Council, it is clarified that services provided to an educational institution by way of serving of food ( catering including mid- day meals) is exempt from levy of GST irrespective of its funding from government grants or corporate donations [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates
Certain representations have been received requesting for clarification regarding applicability of GST on supply of service by State Govt. to their undertakings or PSUs by way of guaranteeing loans. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021.
Entry No. 34A of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 exempts “Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the banking companies and financial institutions.”
Accordingly, as recommended by the Council, it is re-iterated that guaranteeing of loans by Central or State Government for their undertaking or PSU is specifically exempt under said entry No. 34A
Representations have been received seeking clarification regarding GST rate on parts of Sprinklers or Drip Irrigation System, when they are supplied separately ( i.e. not along with entire sprinklers or drip irrigation system). This issue was examined in the 43rd meeting of GST Council held on the 28th May, 2021.
The GST rate on Sprinklers or Drip Irrigation System along with their laterals/parts are governed by S.No. ‘195B’ under Schedule II of notification No. 1/2017- Central Tax (Rate), dated 28th June, 2017 which has been inserted vide notification No. 6/2018- Central Tax (Rate), dated 25th January, 2018 and reads as below:
HSN Code : 8424
Description of HSN :
Sprinklers; drip irrigation systems including laterals; mechanical sprayer
CGST Rate – 6%
The matter is examined. The intention of this entry has been to cover laterals (pipes to be used solely with with sprinklers/drip irrigation system) and such parts
that are suitable for use solely or principally with ‘sprinklers or drip irrigation system’, as classifiable under heading 8424 as per Note 2 (b) to Section XVI to the HSN. Hence, laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, in terms of Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading.
Notification No. 16/2021 – Central Tax dated 1st June 2021
Interest on delayed payment of taxes is to be paid on the net liability, i.e., the amount debited in the cash ledger. This is a retrospective amendment.
Notification No. 17/2021 – Central Tax dated 1st June 2021
The due date for filing GSTR – 1 for the month of May 2021 has to be filed by 26th June 2021.
Notification No. 18/2021 – Central Tax dated 1st June 2021
Relaxation is given for the payment of interest for the delay in payment of taxes on account of the lockdowns. The notification is a retrospective one and effective from 18th May 2021.
Sr. No
Details/Particulars
Rate of Interest
Months
1
Taxpayers having turnover above ₹ 5 crores during the previous financial year
Reduced rate at 9% for the first 15 days and 18% if the delay is more than 15 days.
March – 21 April – 21 May – 21
2
Taxpayers having a turnover of less than ₹ 5 crores and paying taxes on a monthly basis
1st day to 15th day – 0% 16th day to 60th day – 9% 61st day onwards – 18% 1st day to 15th day – 0% 16th day to 45th day – 9% 46th day onwards – 18% 1st day to 15th day – 0% 16th day to 30th day – 9% 31st day onwards – 18%
March – 21 April – 21 May – 21
3
Taxpayers having a turnover of less than ₹ 5 crores and paying taxes on a monthly basis
1st day to 15th day – 0% 16th day to 60th day – 9% 61st day onwards – 18% 1st day to 15th day – 0% 16th day to 45th day – 9% 46th day onwards – 18% 1st day to 15th day – 0% 16th day to 30th day – 9% 31st day onwards – 18%
March – 21 April – 21 May – 21
4
Taxpayers who have opted for QRMP Scheme
1st day to 15th day – 0% 16th day to 60th day – 9% 61st day onwards – 18%
Jan-March 21 Quarter
Notification No. 19/2021 – Central Tax dated 1st June 2021
The late fee for GSTR – 3B has been reduced to taxpayers filing returns due to delays caused by the prevailing lockdowns and encouraging other taxpayers who have not filed returns from July 2017 to April 2021 with riders.
Late relaxation for the current financial year
Sr. No
Details/Particulars
Late fee waived off
Months
1
Taxpayers having turnover above ₹ 5 crores during the previous financial year
If filed within 15 days of the due date
March – 21 April – 21 May – 21
2
Taxpayers having a turnover of less than ₹ 5 crores and paying taxes quarterly
If filed within 60 days of the due date If filed within 45 days of the due date If filed within 45 days of the due date
March – 21 April – 21 May – 21
3
Taxpayers having a turnover of less than ₹ 5 crores and paying taxes on a quarterly basis
If filed within 60 days of the due date
Jan-March 21 Quarter
Late relaxation for the previous periods
Sr. No
Return Filing Period
Condition – 1
Condition – 1
Late Fee to be paid per month max
1
July 2017 to April 2021
Nil
Filed between 1st June 21 & 31st August
₹ 250*
2
July 2017 to April 2021
If Tax liability is there
Filed between 1st June 21 & 31st August
₹ 500*
*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.
Late relaxation for the future periods
The late fee waiver is provided for the future also starting from June 2021 due to the prevailing pandemic and lockdowns
Sr. No
Details/Particulars
Late Fee Maximum to be paid
1
Nil Tax liability
₹ 250*
2
Taxpayers having turnover up to ₹ 1.50 crores
₹ 1,000*
3
Taxpayers having turnover above ₹ 1.50 crores
₹ 2,500*
*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.
Notification No. 20/2021 – Central Tax dated 1st June 2021
Relaxation has been provided for the delayed filing of GSTR – 1 for small taxpayers from June 2021 onwards. This applies to the taxpayers who are filing GSTR – 1 on a quarterly basis also.
Sr. No
Details/Particulars
Late Fee Maximum to be paid
1
Nil Tax liability
₹ 250*
2
Taxpayers having turnover up to ₹ 1.50 crores
₹ 1,000*
3
Taxpayers having turnover above ₹ 1.50 crores and below ₹ 5.00 crores
₹ 2,500*
*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.
Notification No. 21/2021 – Central Tax dated 1st June 2021
Relaxation in late fees is also provided for taxpayers registered under the composition scheme.
Sr. No
Details/Particulars
Late Fee Maximum to be paid
1
Nil Tax liability
₹ 250*
2
Having tax liability to be discharged
₹ 1,000*
*SGST * UT GST Amounts will be in addition to this amount, as this notification is only for the CGST.
Notification No. 22/2021 – Central Tax dated 1st June 2021
Late fee relaxation has been provided to taxpayers registered as Tax Deductors and required to file GSTR – 7. The late has been capped at ₹ 1,000 per month for delay in return filing from June 2021 onwards.
Notification No. 23/2021 – Central Tax dated 1st June 2021
Relaxation is also provided for taxpayers falling under the category as Government Departments and Local bodies from issuing e-invoices.
Notification No. 24/2021 – Central Tax dated 1st June 2021
The time limits for the completion of compliance or any action by the tax authorities or any person which are falling between 15th April 2021 to 29th June 2021 has been extended in the following cases to 30th June 2021
a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called; or
b) filing any appeal, reply, or application or furnishing any report, document, return, statement, or other records, by whatever name is called.
The above extension is not applicable in the following cases
Related to Time of Supply
If the turnover of the composition taxpayer has crossed the threshold during this period
Section 25 – registration procedure
Section 27 – procedure-related to casual taxable person and the non-resident taxable person
Section 31 – Tax Invoice
Section 37 – provisions related to the filing of returns for outward supplies
Section 47 – provisions related to levy of late fee
Section 50 – provisions related to ley of interest
Section 69 – provisions related to power to arrest errant taxpayers
Section 90 – provisions related to Liability of partners of firm to pay tax
Section 122 – provisions related to penalties for certain offenses
Section 129 – provisions related to detention, seizure and release of goods and conveyance under transit
Section 39 – except for provisions related to sub-section (3), (4) and (5) related to TDS deductors, ISD and not resident taxpayers
Section 68 – provisions related to e-waybill
The time limit for completion of any action by any authority or by any person as per Rule 9 of the CGST Rules related to verification and approval of registration application, falling during the period from 1st May, 2021 to 30th June 2021, shall be extended to 15th July 2021
Notification No. 25/2021 – Central Tax dated 1st June 2021
The due date for filing of Form GSTR – 4 by composition taxpayer for the year April 2020 to March 2021 has been extended from 31st May 2021 to 31st July 2021.
Notification No. 26/2021 – Central Tax dated 1st June 2021
The due date for furnishing the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker, during the period from 1st January 2021 to 31st March 2021, has been extended from 31st May 2021 to 30th June 2021.
This notification is a retrospective one and comes applicable from 31st May 2021.
Notification No. 27/2021 – Central Tax dated 1st June 2021
Taxpayers registered as a company under various provisions of the Companies Act 2013 can file returns using the Electronic Verification Code (EVC) until 31st August 2021.
Due to the ongoing pandemic and disruptions in business on account of lockdowns, relaxation has been provided while availing Input Tax Credit. Matching needs to be done on a monthly basis for the months of April 21, May 21 and June 21. It can be done cumulatively while flinging the GSTR – 3B for the month of June 2021.
Taxpayers who have opted for the Quarterly Returns and Monthly Payment (QRMP) have also been provided some relaxation for filing of Invoice Furnishing Facility (IFF) for the month of May 2021, and now it can be filed by 28th June 2021.
Notification No.1/2021 – Central Tax (Rates) dated 2nd June 2021
Sr. No
HSN Code
New Rate
Old Rate
1
9503 – Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys] 9503 – Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys] 9503 – Electronic Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof)
2.5% 2.5% 2.5%
6% 6% 9%
2
Diethylcarbamazine
2.5%
6%
Notification No.2/2021 – Central Tax (Rates) dated 2nd June 2021
Sr. No
HSN Code
New Rate
Old Rate
1
“(ib) Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components or parts.
2.5%
9%
Another major benefit is provided is for the landowners; now with this amendment, the landowners can utilize the input tax credit charged by the developer on the sale of apartments if sold before the issue of the occupation certificate.
Notification No.3/2021 – Central Tax (Rates) dated 2nd June 2021
The time of payment of GST by the landowner promoter shall be allowed to pay GST relating to such apartments any time before or at the time of issuance of completion certificate.
The 43 GST Council met under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman through video conferencing here today. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Finance Ministers of States & UTs and senior officers of the Ministry of Finance & States/ UTs. The GST Council has made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure: COVID-19 RELIEF As a COVID-19 relief measure, a number of specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency. This exemption shall be valid upto 31.08.2021. Hitherto, IGST exemption was applicable only when these goods were imported “free of cost” for free distribution. The same will also be extended till 31.8.2021. It may be mentioned that these goods are already exempted from Basic Customs duty. Further in view of rising Black Fungus cases, the above exemption from IGST has been extended to Amphotericin B. Further relief in individual item of COVID-19 after Group of Ministers (GoM) submits report on 8 June 2021
As regards individual items, it was decided to constitute a Group of Ministers (GoM) to go into the need for further relief to COVID-19 related individual items immediately. The GOM shall give its report by 08.06.2021.
OTHER RELIEFS ON GOODS To support the LympahticFilarisis (an endemic) elimination programme being conducted in collaboration with WHO, the GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%). Certain clarifications/clarificatory amendments have been recommended in relation to GST rates. Major ones are, – Leviability of IGST on repair value of goods re-imported after repairs GST rate of 12% to apply on parts of sprinklers/ drip irrigation systems falling under tariff heading 8424 (nozzle/laterals) to apply even if these goods are sold separately.
SERVICES To clarify those services supplied to an educational institution including anganwadi(which provide pre-school education also), by way of serving of food including mid- day meals under any midday meals scheme, sponsored by Government is exempt from levy of GST irrespective of funding of such supplies from government grants or corporate donations. To clarify these services provided by way of examination including entrance examination, where fee is charged for such examinations, by National Board of Examination (NBE), or similar Central or StateEducational Boards, and input services relating thereto are exempt from GST. To make appropriate changes in the relevant notification for an explicit provision to make it clear that land owner promoters could utilize credit of GST charged to them by developer promoters in respect of suchapartments that are subsequently sold by the land promotor and on which GST is paid. The developer promotor shall be allowed to pay GST relating to such apartments any time before or at the time of issuance of completion certificate. To extend the same dispensation as provided to MRO units of aviation sector to MRO units of ships/vessels so as to provide level playing field to domestic shipping MROs vis a vis foreign MROs and accordingly, – GST on MRO services in respect of ships/vessels shall be reduced to 5% (from 18%). PoS of B2B supply of MRO Services in respect of ships/ vessels would be location of recipient of service To clarify that supply of service by way of milling of wheat/paddy into flour (fortified with minerals etc. by millers or otherwise )/rice to Government/ local authority etc.for distribution of such flour or rice under PDS is exempt from GST if the value of goods in such composite supply does not exceed 25%. Otherwise, such services would attract GST at the rate of 5% if supplied to any person registered in GST, including a person registered for payment of TDS. To clarify that GST is payable on annuity payments received as deferred payment for construction of road. Benefit of the exemption is for such annuities which are paid for the service by way of access to a road or a bridge.
To clarify those services supplied to a Government Entity by way of construction of a rope-way attract GST at the rate of 18%. To clarify that services supplied by Govt. to its undertaking/PSU by way of guaranteeing loans taken by such entity from banks and financial institutions is exempt from GST.
MEASURES FOR TRADE FACILITATION:
Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns: To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: – i. 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; ii. late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers; The reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.
2. Rationalization of late fee imposed under section 47 of the CGST Act:
To reduce burden of late fee on smaller taxpayers, the upper cap of late fee is being rationalized to align late fee with tax liability/ turnover of the taxpayers, as follows
A. The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 to be capped, per return, as below: (i) For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee to be capped at Rs 500 (Rs 250 CGST + Rs 250 SGST) (ii) For other taxpayers: a. For taxpayers having Annual Aggregate Turnover (AATO) in preceding year upto Rs 1.5 crore, late fee to be capped to a maximum of Rs 2000 (1000 CGST+1000 SGST); b. For taxpayers having AATO in preceding year between Rs 1.5 crore to Rs 5 crore, late fee to be capped to a maximum of Rs 5000 (2500 CGST+2500 SGST); c. For taxpayers having AATO in preceding year above Rs 5 crores, late fee to be capped to a maximum of Rs 10000 (5000 CGST+5000 SGST).
B. The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers to be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return, if tax liability is nil in the return, and Rs 2000 (Rs 1000 CGST + Rs 1000 SGST) per return for others.
C. Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return. All the above proposals to be made applicable for prospective tax periods.
3. COVID-19 related relief measures for taxpayers:
In addition to the relief measures already provided to the taxpayers vide the notifications issued on 01.05.2021, the following further relaxations are being provided to the taxpayers:
A. For small taxpayers (aggregate turnover upto Rs. 5 crore)
a. March & April 2021 tax periods: i. 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. ii. 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. iii. 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 May 2021 tax period: i. 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. ii. 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
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. ii. 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.
C. Certain other COVID-19 related relaxations to be provided, such as
Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.
Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021.
Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.
D. Relaxations 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 to 29 June, 2021, to be extended upto 30 June, 2021, subject to some exceptions. [Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply]
4. Simplification of Annual Return for Financial Year 2020-21:
i. Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021 to be notified. This would ease the compliance requirement in furnishing reconciliation statement in FORM GSTR-9C, as taxpayers would be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21. ii. The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover upto Rs 2 Crore; iii. The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore.
Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on net cash basis, to be notified at the earliest.
OTHER MEASURES i. GST Council recommended amendments in certain provisions of the Act so as to make the present system of GSTR-1/3B return filing as the default return filing system in GST.
Note: The recommendations of the GST Council have been presented in this release in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/Notifications which alone shall have the force of la
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