GST collection for October 2021 registered the second-highest since the implementation of GST.
The gross GST revenue collected in the month of October 2021 is ₹ 1,30,127 crore of which CGST is ₹ 23,861 crore, SGST is ₹ 30,421 crore, IGST is ₹ 67,361 crore (including ₹ 32,998 crores collected on import of goods) and Cess is ₹ 8,484 crore (including ₹ 699 crores collected on import of goods).
The government has settled ₹27,310 crores to CGST and ₹ 22,394 crores to SGST from IGST as regular settlement. The total revenue of the Centre and the States after regular settlements in the month of October 2021 is ₹ 51171 crore for CGST and ₹ 52,815 crores for the SGST.
The revenues for the month of October 2021 are 24% higher than the GST revenues in the same month last year and 36% over 2019-20. During the month, revenues from import of goods were 39% higher and the revenues from the domestic transactions (including import of services) are 19% higher than the revenues from these sources during the same month last year.
The GST revenues for October have been the second-highest ever since the introduction of GST, second only to that in April 2021, which is related to year-end revenues. This is very much in line with the trend in economic recovery. This is also evident from the trend in the e-way bills generated every month since the second wave. The revenues would have still been higher if the sales of cars and other products had not been affected on account of disruption in the supply of semiconductors. Chart 1 shows the upward trend in the number of e-way bills generated during the month and the amount of taxable value clearly indicating the recovery in economic activity.
The revenues have also been aided due to the efforts of the State and Central tax administration resulting in increased compliance over previous months. In addition to action against individual tax evaders, this has been a result of the multipronged approach followed by the GST Council. On one hand, various measures have been taken to ease compliance like nil filing through SMS, enabling Quarterly Return Monthly Payment (QRMP) system and autopopulation of return. During past one year, GSTN has augmented the system capacity considerably to improve user experience. On the other hand, the Council has also taken various steps to discourage non-compliant behaviour, like blocking of e-way bills for non-filing of returns, system-based suspension of registration of taxpayers who have failed to file six returns in a row and blocking of credit for return defaulters. Number of returns (GSTR-3B) of every month/quarter by the end of next month is a good parameter indicating timely payment of returns and filing of returns. After last date of filing of returns, special efforts are undertaken to ensure compliance by the end of the month in form of messaging by GSTN and close follow up by the Centre and State tax administration. Chart 2 showing the upward trend in percentage of returns filed till the end of next month clearly indicates that timely payment of taxes has been increasing over a period of time due to policy measures and administrative efforts.
This has also been aided by the fact that at various occasions, Council decided to waive late fee allowing people to file old returns and come up-to-date in filing of returns. With more and more taxpayers filing the returns every month, the percentage of returns of old period filed in any month has been increasing continuously. Chart 3 shows the share of returns of the current period filed in every month out of the total returns filed, clearly indicating that the number of returns of the current month has increased considerably. 1.5 crore returns were filed in the month of July 2021 as taxpayers filed returns of past months taking benefit of the relaxation given due to Covid.With improvement of return filing, the focus of GST Council has been on timely filing of GSTR-1, the statement containing details of invoices. This statement is critical to ensure discipline in taking input tax credit. Various steps have been taken to ensure timely filing of GSTR-1. Chart 4 displaying GSTR-1 filing by the end of the month shows that these steps have brought in the desired result as the percentage of GSTR-1 filed by the end of the month is clearly showing an upward trend.Overall, the impact of these efforts has ensured increased compliance and higher revenues. As a part of overall efforts to plug evasion, more steps to restrict fake ITC are under consideration of the GST Council. Chart 5 below shows the trend in monthly GST revenues during the year and the table shows the state-wise breakup of GST revenues (excluding GST on import of goods). There is a small difference between the monthly figures shown in the chart below for the months of May and Jun and those included in the respective press notes as the figures published then were till 5 of the next month as the taxpayers were given relief in filing of returns till 5 of the next month due to the pandemic.
Resumption of Blocking of E-Way Bill (EWB) generation facility.
1. The blocking of E way bill generation facility had been temporarily suspended by Government on account of Covid pandemic. In terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for consecutive two tax periods or more, whether Monthly or Quarterly.
2. The blocking of EWB generation facility has now resumed on the EWB portal for all the taxpayers. Going forward, from the tax period August, 2021 onwards, the System will periodically check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08 as per the regular procedure followed before pandemic, and block the generation of EWBs as per rule.
3. To avail EWB generation facility on EWB Portal on continuous basis, you are, therefore, advised to file your pending GSTR 3B returns/ CMP-08 Statement on regular basis.
4. For details of blocking and unblocking EWB, Click on below link:
GST R₹ 1,16,393 crore gross GST revenue collected in July
The gross GST revenue collected in the month of July 2021 is ₹ 1,16,393 crore of which CGST is ₹ 22,197 crore, SGST is ₹ 28,541 crore, IGST is ₹ 57,864 crore (including ₹ 27,900 crore collected on import of goods) and Cess is ₹ 7,790 crore (including ₹ 815 crore collected on import of goods).The above figure includes GST collection received from GSTR-3B returns filed between 1st July 2021 to 31st July2021 as well as IGST and cess collected from imports for the same period.
The GST collection for the returns filed between 1st July to 5th July2021 of ₹ 4,937 crore had also been included in the GST collectionin the press note for the month of June2021since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month June21 for the taxpayers with the aggregate turnover uptoRs. 5 crore in the wake of covid pandemic second wave.
The government has settled ₹ 28,087 crore to CGST and ₹ 24100 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlement in the month of July’ 2021 is ₹ 50284 crore for CGST and ₹ 52641 crore for the SGST.
The revenues for the month of July 2021 are 33% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 36% higher and the revenues from domestic transaction (including import of services) are 32% higher than the revenues from these sources during the same month last year.
GST collection, after posting above Rs. 1 lakh crore mark for eight months in a row, dropped below Rs. 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021 and during May2021, most of the States/UTs were under either complete or partial lock down due to COVID. With the easing out of COVID restrictions, GST collection for July2021 has again crossed₹1 lakh crore, which clearly indicates that the economy is recovering at a fastpace.The robust GST revenues are likely to continue in the coming months too.
Important changes related to QRMP Scheme implemented on the GST Portal for the taxpayers
The changes announced are really a welcome move as it reduces the burden of QRMP Taxpayers for consolidating the data and the filing the returns.
Few important changes related to QRMP Scheme implemented on the GST Portal for the taxpayers are as given below:
A.Auto population of GSTR-3B liability from IFF and Form GSTR 1 : A taxpayer under QRMP Scheme can declare their liability through optional IFF for Month 1 and Month 2 of a quarter & Form GSTR-1 for Month 3 of that quarter. Declaration of liability in these forms would now be auto-populated in their Form GSTR-3B (Quarterly) for that quarter, based on their filed Form GSTR-1 and IFF. These fields are editable and in case their values are revised upwards or downwards, the edited field(s) would be highlighted in red colour and a warning message will be displayed to the taxpayer. However, the system would not prevent taxpayer from filing of Form GSTR-3B with edited values.
B.Nil filing of Form GSTR-1 (Quarterly) through SMS : Nil filing of Form GSTR-1 (Qtrly) through SMS has been enabled for taxpayers under QRMP Scheme. They can now file it by sending a message in specified format to 14409. The format of the message is < NIL > space < Return Type (R1) > space< GSTIN > space < Return Period (mmyyyy) > . Example: NIL R1 07XXXXX1234H8Z6 062020 (where return period must be last month of the quarter)
However, NIL filing through SMS can’t be done in following scenarios: •If IFF for Month 1 or 2 of a quarter is in Submitted stage, but not Filed. •If invoices are Saved in IFF for Month 1 or 2 of a quarter, which was not submitted or filed by due date.
C.Impact of cancellation of registration on liability to file Form GSTR-1 : In case registration of a taxpayer under QRMP Scheme is cancelled, with effective date of cancellation being any date after 1st day of Month 1 of a quarter, they would be required to file Form GSTR-1 for the complete quarter, as the last applicable return. For example if the taxpayer’s registration is cancelled w.e.f. 1st of April, he/she is not required to file Form GSTR-1 for Apr-June quarter and Form GSTR-1 for Jan-Mar Quarter shall become the last applicable return. However, if the registration is cancelled on a later date during the quarter, the taxpayer would be required to file Form GSTR-1 for Apr-June quarter. In such cases the filing will become open on 1st of month following the month with cancellation date i.e. if cancellation has taken place on 20th May, Form GSTR-1 for Quarter Apr-June can be filed anytime on or after 1st of June.
We would like to advise a word of caution, please cross check the numbers auto populated as it help to identify any issues in auto population.
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
New Functionalities enabled on GST Portal during the month of April 2021
Change and improvements are the main reasons for success of any reform or product and the same is being adopted by the GSTN. It is goods to note that GSTN is coming up with new features day in day out and enabling the taxpayers to have seamless experience. These new features will definitely improve the user experience as well as improve the efficiency of compliances and minimizing the errors.
Let’s discuss about the new features/functionalities released by GSTN during the month of April 2021
Auto Generation of Form GSTR – 2B for QRMP (Quarterly Returns Monthly Payment) Taxpayers
For availing input tax credit matching as per Rule 69 of the CGST Rules is to be carried out based on the taxpayers Purchase Register and data auto populated in From GSTR – 2B based on the suppliers filing of Form GSTR – 1 or IFF (Invoice Furnishing Facility). The QRMP Tax payers have also to do matching and for that Form GSTR – 2B is the basis and now the same is made available to the those taxpayers
Taxpayers can now view and download their system generated Quarterly Form GSTR-2B, for Jan-March, 2021 quarter, by clicking on Auto-drafted ITC statement for the quarter on 14th April, 2021, by selecting the last month of the quarter (M3).
Form GSTR-2B contains details of filed IFFs (for Month M1 & M2) & filed Form GSTR 1 (for Month M3). Form GSTR 2B has two sections of ITC i.e. ITC available and ITC not available (which flows from the supplier’s filed IFF & Form GSTR-1, imports etc.). It also contains tax liability of the taxpayer (which flows from the taxpayers own filed IFF & Form GSTR-1).
The default view of Form GSTR-2B is quarterly. However to view Form GSTR-2B of a particular month (M1, M2 or M3), taxpayer has an option to select appropriate month, from the view drop-down to view that month’s data.
A hyperlink ‘View advisory’ has also been provided, which on clicking displays the criteria/ cut-off dates considered for generation of quarterly GSTR-2B, as a pop-up, with details of Supplies from/type i.e. Monthly taxpayer, Taxpayer in QRMP Scheme, NRTP, ISD & Import from Overseas/SEZs, and ‘From
Offline Matching Tool enabled for QRMP Taxpayers
Matching of taxpayers purchase register and data based on the filing of Suppliers Form GSTR – 1 or IFF is an time consuming and complex activity as the taxpayers will many transactions during the return filing period. Automation is the need as it will avoid the user errors and saves time and efforts. Some taxpayers cannot afford investments on technology and for such taxpayers the GSTN has provided an offline utility for matching. With the rollout of QRMP scheme, now the same utility is being made available to the QRMP taxpayers also.
The Matching Offline Tool has been updated and now taxpayers under QRMP Scheme will also be able to use it.
The system generated Form GSTR-2B JSON file can be used for matching details, as available with them in their purchase register, using the updated Matching Offline Tool.
Taxpayers under QRMP Scheme can now navigate to Services > Returns > Returns Dashboard, select the Financial Year and Return Filing Period > SEARCH and click on Download button on Auto – drafted ITC Statement – GSTR -2B tile to download system generated Form GSTR-2B JSON file, for opening and matching it in the matching tool.
In the Matching tool dashboard page, an option to select the quarter has been provided and in the purchase register, quarters Apr-Jun, Jul-Sep, Oct Dec and Jan-Mar have been added as the tax periods.
Auto-population of ITC data in Form GSTR – 3B for QRMP taxpayers
The success of any product or service will depend on the ease of its operations and usage it and providing auto population of data is another key element for return filing. Reconciliations or error occur when there is data entry. Form GSTR – 3B being a business critical return, the accuracy in filing of it is the need of the hour and similar to regular taxpayer the Input tax credit data is now being auto populated for QRMP Taxpayers also.
Figures of ITC available and ITC to be reversed, will now be auto-populated in Table 4 of Form GSTR-3B of the taxpayers under QRMP scheme, from their system generated quarterly Form GSTR-2B.
On the GSTR-3B dashboard page, an additional button ‘System computed GSTR-3B’ has also been provided, by clicking which system computed Form GSTR-3B can be downloaded in PDF format.
Taxpayer under QRMP scheme can edit the auto-drafted values as per their records and save the updated details in their Form GSTR-3B. The system will show a warning message to taxpayers in case ITC available is increased by more than 5% or ITC to be reversed is reduced even partially, by them. However, the system will not stop the filing of Form GSTR-3B in these cases.
Auto-population of Liability data in Form GSTR – 3B for QRMP taxpayers
Similar to input tax credit, the data related to the tax liability to the be discharged by the QRMP taxpayers will be auto populated in Form GSTR – 3B
Liability in Table-3 (except 3.1(d)) of Form GSTR-3B, for the taxpayers under QRMP Scheme, will now be auto-populated on the basis of Filed quarterly Form GSTR-1 (of Month 3) and Filed IFF (of Month 1 & 2). Liability of table 3.1 (d) is auto populated from the filer’s Form GSTR 2B.
Note: Data saved/ submitted in Form GSTR-1 or in IFF, will not be auto-populated as Liability, in Table-3 of Form GSTR 3B
Generation of From GSTR – 11 based on From GSTR – 1 and GSTR – 5
Entities and organizations which are falling part of the Geneva Convention or as notified by commissioner from time to time have to the take registration under UIN scheme. The main idea of having a different registration number and basis on that they can claim refund on taxes paid by them for their purchases. These organizations are not required to pay taxes as part of the treaty and they are exempted but in GST as exemptions are very limited or restriced they are provided with refund mechanism and for that they have file From GSTR – 11. Now for these taxpayers also based on the suppliers GSTR – 1 or GSTR – 5, the data is auto populated.
UIN holders are required to file details of purchases (inward supplies) in their Form GSTR-11. Now their Form GSTR-11 will be generated on the basis of Form GSTR-1 & Form GSTR-5, filed by their supplier taxpayers. This will facilitate UIN holder’s in filing their refund claim
In order to address the challenges faced by the small taxpayers who constitute to the majority of the taxpayers, the Government has launched, Quarterly Return Monthly Payment of Taxes Scheme has been launched applicable from 1st of Jan 2021. As per the 37th GST Council Minutes there were about 60 Lakhs taxpayers below ₹ 5 crores, which means about half of the taxpayers can take benefit of the scheme.
QRMP scheme is applicable to which taxpayers?
It is applicable to all taxpayers whose aggregate turnover is less than ₹ 5 crores.
2. What is the difference in the new quarterly returns scheme compared to the old scheme?
The major difference is the old scheme and new scheme are
The taxpayer has to declare monthly B2B supplies details in IFF – Invoice Furnishing Facility
The recipient can claim input tax credit during the month of purchases only once IFF is filed and not wait for the Supplier to file his GSTR – 1 on quarterly basis.
3. At what intervals the taxes have to be paid by QRMP taxpayers?
The tax has be paid on monthly basis.
4. On what basis the QRMP tax payer has to pay taxes?
There are two methods for payment of taxes by the QRMP Tax payers
35% of the cash paid in previous quarter to be paid in the first two months of the quarter and what ever is the exact liability has to be paid in the third month.
Tax liability for the month can be determined and paid after deducting the input tax credit.
5. How do we make the payment of taxes?
Tax payment will be done through two different documents
For the payment of taxes in the first two month using the Form GST PMT-06
In the third month also Form PMT-06 will be used but through Table 6 of Form GSTR-3B.
6. How do we report the B2B Tax invoices?
B2B tax invoices for the first two months of the Quarter have to be filed using the Invoice Furnishing Functionality and in the third month have to file using the GSTR – 1.
7. What are the steps to be taken for filing of GSTR – 1 and making payment of taxes under QRMP scheme for the last month of the quarter?
a) Verify the sale reported in IFF for the first two months with the sale day book and if any differences are observed, include them in the third months GSTR – 1
b) Verify the inward supplies for first two months claimed with the purchase register, if any differences are observed include them in the GSTR-3B for the third month
c) If any excess cash is paid in the first two months, the same should be adjusted with the third months liability
d) In case of any missing invoices in the first two months which were not reported or under reported, the same should be reported in GSTR – 1 of the third month and interest should be paid @ 18% from the date of tax invoice to the date of filing payment of tax
e) In case if excess input tax credit has been claimed in the first two months, then the same should be reversed in the third month and interest should be paid @24% of the excess ITC taken from the date of claim to the filing date of GSTR – 3B
f) In case of excess cash is paid and balance is there even after filing of GSTR – 3B for the third month, the excess cash balance can be claimed as refund.
As the QRMP Taxpayers are filing it for the first time, it is advised to take proper care should be taken while filing the quarterly returns and paying taxes. In case of any mistakes observed after filing of the third months return the same can be adjusted in the next quarter but the interest outflow will be more and will impact the bottom line of the taxpayers.
The 42nd 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:
1. Levy of Compensation Cess to be extended beyond the transition period of five years i.e. beyondJune, 2022, for such period as may be required to meet the revenue gap. Further details to be worked out.
Centre is releasing compensation of ₹ 20,000 crore to States today towards loss of revenue during 2020-21 and an amount of about ₹ 25,000 crore towards IGST of 2017-18 by next week.
Enhancement in features of return filing:In its 39thMeeting held in March 2020, the Council hadrecommendedan incremental approach to incorporate features of the new return system in the present familiar GSTR-1/3B scheme. Various enhancements have since been made available on the GST Common Portal. With a view to further enhance Ease of Doing Business and improve the complianceexperience, the Council has approved the future roadmap for return filing under GST. The approved frameworkaims to simplify return filing and further reduce the taxpayer’s compliance burden in this regard significantly, such that the timely furnishing of details of outward supplies (GSTR-1) by ataxpayer and his suppliers would –(i) allow him to view the ITC available in his electronic credit ledger from all sources i.e. domestic supplies, imports and payments on reverse charge etc. prior to the due date for payment of tax, and (ii) enable the system to auto-populate return (GSTR-3B)through the data filed by the taxpayer and all his suppliers. In other words, the timely filing of GSTR-1 statement alone would be sufficient as the return in FORM GSTR-3B would get auto prepared on the common portal.To this end the Council recommended / decided the following:
Due date of furnishing quarterly GSTR-1 by quarterly taxpayers to be revised to 13th of the month succeeding the quarterw.e.f. 01.1.2021;
Roadmap for auto-generation of GSTR-3B from GSTR-1s by:
Auto-population of liability from own GSTR-1 w.e.f. 01.01.2021; and
Auto-population of input tax credit from suppliers’ GSTR-1s through the newly developed facility in FORM GSTR-2B for monthly filers w.e.f. 01.01.2021 and for quarterly filers w.e.f.01.04.2021;
In order to ensure auto population of ITC and liability in GSTR 3B as detailed above, FORMGSTR 1would be mandatorily required to be filed before FORM GSTR3Bw.e.f. 01.04.2021.
The present GSTR-1/3B return filing system to be extended till 31.03.2021 and the GST laws to be amended to make the GSTR-1/3B return filing system as the default return filing system.
As a further step towards reducing the compliance burden particularly on the small taxpayers having aggregate annual turnover < Rs. 5 cr., the Council’s earlier recommendation of allowing filing of returns on a quarterly basis with monthly payments by such taxpayers to be implemented w.e.f. 01.01.2021. Such quarterly taxpayers would, for the first two months of the quarter, have an option to pay
35% of the net cash tax liability of the last quarter using an auto generated challan.
Revised Requirement of declaring HSN for goods and SAC for services in invoices and in FORM GSTR-1w.e.f. 01.04.2021 as under:
HSN/SAC at 6 digits for supplies of both goods and services for taxpayers with aggregate annual turnover above Rs. 5 crores;
HSN/SAC at 4 digits for B2B supplies of both goods and services for taxpayers with aggregate annual turnover upto Rs. 5 crores;
Government to have power to notify 8 digit HSN on notified class of supplies by all taxpayers.
Amendment to the CGST Rules: Variousamendments in the CGST Rules and FORMS have beenrecommended which includes provision for furnishing of Nil FORM CMP-08 through SMS.
Refund to be paid/disbursed in a validated bank account linked with the PAN &Aadhaar of the registrant w.e.f. 01.01.2021.
To encourage domestic launching of satellites particularly by young start-ups, the satellite launch services supplied by ISRO, Antrix Corporation Ltd. and NSIL would be exempted.
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Note:- The decisions of the GST Council have been presented in this note in simple language for easy understanding. The same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.
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