Recommendations of 45th GST Council Meeting

Recommendations of 45th GST Council Meeting.

The first meeting to take place in persons after the impact of COVID-19.

Some key decisions are taken in today’s meeting to augment revenue, stream line GST provisions on portal as per Law and some exemptions were provided for treatment of COVID-19 or extension of concessional rates extended till 31st Dec 2021.

• Life-saving drugs Zolgensma and Viltepso used in treatment of Spinal-Muscular Atrophy exempted from GST when imported for personal use
• Extension of existing concessional GST rates on certain COVID-19 treatment drugs upto 31 December 2021
• GST rates on 7 other medicines recommended by Department of Pharmaceuticals reduced from 12% to 5% till 31
  December 2021
• GST rate on Keytruda medicine for treatment of cancer reduced from 12% to 5%
• GST rates on Retro fitment kits for vehicles used by persons with special abilities reduced to5%
• GST rates on Fortified Rice kernels for schemes like ICDS reduced from 18% to 5%
• Council also recommends major changes in GST rates and scope of exemption on Services
• Recommends several clarifications in relation to GST rates on Goods and Services
• Council recommends several measures relating to GST law and procedure
• Council decides to set up 2 GoMs to examine issue of correction of inverted duty structure for major sectors and for using technology to further improve compliance, including monitoring

The GST Council’s 45 meeting was held today in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure:

I. Recommendations relating to GST rates on goods and services

A. COVID-19 relief measure in form of GST rate concessions

1. Extension of existing concessional GST rates (currently valid till 30 September, 2021) on following Covid-19 treatment drugs, up to 31 December, 2021 , namely-
a) Nil Rate for Amphotericin B

b) 5% on Remdesivir

c) Nil rate on Tocilizumab

d) 5% on Anti-coagulants like Heparin

2. Reduction of GST rate to 5% on more Covid-19 treatment drugs, up to 31 December, 2021,namely-

a) Itolizumab
b) Posaconazole
c) Infliximab
d) Favipiravir
e) Casirivimab & Imdevimab
f) 2-Deoxy-D-Glucose
g) Bamlanivimab & Etesevimab

Major recommendations on GST rate changes in relation to Goods with effective from 1st Oct 20201 unless otherwise stated

a) GST Rate on Retro fitment kits for vehicles used by the disabled has been reduced from applicable rate to 5%

b) GST Rate on Fortified Rice Kernels for schemes like ICDS etc. has been reduced from 18% to 5%

c) GST Rate on Medicine Keytruda for treatment of cancer has been reduced from 12% to 5%

d) GST Rate on Biodiesel supplied to OMCs for blending with Diesel has been reduced from 12% to 5%

e) GST rate on Ores and concentrates of metals such as iron, copper, aluminum, zinc and few others has been increased from 5% to 12%.

f) GST rates on Specified Renewable Energy Devices and parts has been increased from 5% to 12%

g) GST rates on Cartons, boxes, bags, packing containers of paper etc. has been rationalized to 18% from existing rates of 12% and 18%.

h) GST rates on Waste and scrap of polyurethanes and other plastics has been increased from 5% to 18%.

i) Rates have been rationalized on All kinds of pens from 12% & 18% to 18%.

j) GST Rates on Railway parts, locomotives & other goods in Chapter 86 has been increased from 12% to 18%

h) GST Rates on Miscellaneous goods of paper like cards, catalogue, printed material (Chapter 49 of tariff) has been increased from 12% to 18%.

k) IGST on import of medicines for personal use, has been exempted from the current rate of 12% on Zolgensma
for Spinal Muscular Atrophy, Viltepso for Duchenne Muscular Dystrophy & Other medicines used in treatment of muscular atrophy recommended by Ministry of Health and Family Welfare and Department of Pharmaceuticals.

l) IGST exemption on goods supplied at Indo-Bangladesh Border haats has bee rationalized from existing rates to Nil rate

m) Unintended waste generated during the production of fish meal except for Fish Oil is declared as Nil rated from 1st July 2017 to 30th Sep 2019.

C. Other changes relating to GST rates on goods

1. Supply of mentha oil from unregistered person has been brought under reverse charge. Further, Council has also recommended that exports of Mentha oil should be allowed only against LUT and consequential refund of input tax credit.
2. Brick kilns would be brought under special composition scheme with threshold limit of Rs. 20lakhs, with effect from 1.4.2022. Bricks would attract GST at the rate of 6% without ITC under the scheme. GST rate of 12% with ITC would otherwise apply to bricks.

D. Correction in Inverted Duty structure in Footwear and Textiles sector

GST rate changes in order to correct inverted duty structure, in footwear and textiles sector, as was discussed in earlier GST Council Meeting and was deferred for an appropriate time, will be implemented with effect from 01.01.2022.

E. In terms of the recent directions of the Hon’ble High Court of Kerala, the issue of whether specified petroleum products should be brought within the ambit of GST was placed for consideration before the Council. After due deliberation, the Council was of the view that it is not appropriate to do so at this stage.

F. Major GST changes in relation to rates and scope of exemption on Services with effective from 1st Oct 2021 unless otherwise stated

a) Validity of GST exemption on transport of goods by vessel and air from India to outside India is extended upto 30.9.2022.

b) GST rates on Services by way of grant of National Permit to goods carriages on payment of fee has been reduced from 18% Nil Rate

c) GST rates Skill Training for which Government bears 75% or more of the expenditure [ presently exemption applies only if Govt funds 100%]. from current rate of 18% to Nil rate

d) GST rates Services related to AFC Women’s Asia Cup 2022. has been reduced from current rate of 18% to Nil Rate

e) GST rates on Licensing services/ the right to broadcast and show original films, sound recordings, Radio and Television programmes [ to bring parity between distribution and licencing services] has been increased from 12% to 18%.

f) Printing and reproduction services of recorded media where content is supplied by the publisher (to bring it on parity with Colour printing of images from film or digital media) has been increased from 12% to 18%

g) Exemption on leasing of rolling stock by IRFC to Indian Railways withdrawn.

h) E Commerce Operators are being made liable to pay tax on following services provided through them

i) transport of passengers, by any type of motor vehicles through it with effective from 1st Jan 2022.

ii) restaurant services provided through it with some exceptions with effective from 1st Jan 2022

i) Certain relaxations have been made in conditions relating to IGST exemption relating to import of goods on lease, where GST is paid on the lease amount, so as to allow this exemption even if (i) such goods are transferred to a new lessee in India upon expiry or termination of lease; and (ii) the lessor located in SEZ pays GST under forward charge.

G. Clarification in relation to GST rate on Goods

1. Pure henna powder and paste, having no additives, attract 5% GST rate under Chapter 14.
2. Brewers’ Spent Grain (BSG), Dried Distillers’ Grains with Soluble [DDGS] and other such residues, falling under HS code 2303 attract GST at the rate of 5%.
3. All laboratory reagents and other goods falling under heading 3822 attract GST at the rate of12%.
4. Scented sweet supari and flavored and coated illachi falling under heading 2106 attract GST atthe rate of 18%
5. Carbonated Fruit Beverages of Fruit Drink” and “Carbonated Beverages with Fruit Juice”attract GST rate of 28% and Cess of 12%. This is being prescribed specifically in the GST rate schedule.
6. Tamarind seeds fall under heading 1209, and hitherto attracted nil rate irrespective of use. However, henceforth they would attract 5% GST rate effective from 1st Oct 2021 for use other than sowing. Seeds for sowing will continue at nil rate.
7. External batteries sold along with UPS Systems/ Inverter attract GST rate applicable to batteries [ 28% for batteries other than lithium-ion battery] while UPS/inverter would attract18%.
8. GST on specified Renewable Energy Projects can be paid in terms of the 70:30 ratio for good sand services, respectively, during the period from 1st July 2017 to 31st Dec 2018 in the same manner as has been prescribed for the period on or after 1 January 2019.
9. Due to ambiguity in the applicable rate of GST on Fibre Drums, the supplies made at 12%GST in the past have been regularised. Henceforth, a uniform GST rate of 18% would apply to all paper and paper board containers, whether corrugated or non-corrugated.
10. Distinction between fresh and dried fruits and nuts is being clarified for application of GST rate of “nil” and 5%/12% respectively;
11. It is being clarified that all pharmaceutical goods falling under heading 3006 attract GST at the rate of 12% [ not 18%].
12. Essentiality certificate issued by Directorate General of Hydrocarbons on imports would suffice; no need for taking a certificate every time on inter-state stock transfer.

H. Clarification in relation to GST rate on services

1. Coaching services to students provided by coaching institutions and NGOs under the central sector scheme of ‘Scholarships for students with Disabilities” is exempt from GST
2. Services by cloud kitchens/central kitchens are covered under ‘restaurant service’, and attract5% GST [ without ITC].
3. Ice cream parlor sells already manufactured ice- cream. Such supply of ice cream by parlors would attract GST at the rate of 18%.
4. Overloading charges at toll plaza are exempt from GST being akin to toll.
5. The renting of vehicle by State Transport Undertakings and Local Authorities is covered by expression ‘giving on hire’ for the purposes of GST exemption
6. The services by way of grant of mineral exploration and mining rights attracted GST rate of18% with effective from 1st July 2017
7. Admission to amusement parks having rides etc. attracts GST rate of 18%. The GST rate of28% applies only to admission to such facilities that have casinos etc.
8. Alcoholic liquor for human consumption is not food and food products for the purpose of the entry prescribing 5% GST rate on job work services in relation to food and food products.
   

II. On the issue of compensation scenario, a presentation was made to the Council wherein it was brought out that the revenue collections from Compensation Cess in the period beyond June 2022 till April 2026 would be exhausted in repayment of borrowings and debt servicing made to bridge the gap in 2020-21 and 2021-22. In this context various options, as have been recommended by various committees/ forums were presented. The Council deliberated at length on the issue. The Council decided to set up a GoM to examine the issue of correction of inverted duty structure for major sectors; rationalize the rates and review exemptions from the point of view of revenue augmentation, from GST. It was also decided to set up a GoM to discuss ways and means of using technology to further improve compliance including monitoring through improved e-way bill systems, e-invoices, FASTag data and strengthening the institutional mechanism for sharing of intelligence and coordinated enforcement actions by the Centre and the States.

III. Recommendations relating to GST law and procedure

I. Measures for Trade facilitation

1. Relaxation in the requirement of filing FORM GST ITC-04:

Requirement of filing FORM GST ITC-04 under rule 45 (3) of the CGST Rules has been relaxed asunder:
a. Taxpayers whose annual aggregate turnover in preceding financial year is above Rs. 5 crores shall furnish ITC-04 once in six months ;
b. Taxpayers whose annual aggregate turnover in preceding financial year is upto Rs. 5 crores shall furnish ITC-04 annually.

2. In the spirit of earlier Council decision that interest is to be charged only in respect of net cash liability, section 50 (3) of the CGST Act to be amended retrospectively, with effective from 1st July 2017, to provide that interest is to be paid by a taxpayer on “ineligible ITC availed and utilized ” and not on “ineligible ITC availed”. It has also been decided that interest in such cases should be charged on ineligible ITC availed and utilized at 18% with effective from 1st July 2017.

3. Unutilized balance in CGST and IGST cash ledger may be allowed to be transferred between distinct persons
(entities having same PAN but registered in different states) , without going through the refund procedure, subject to certain safeguards.

4. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large:

a. Clarification on scope of “intermediary services

b. Clarification relating to interpretation of the term “merely establishment of distinct person ”in condition (v) of the Section 2 (6) of the IGST Act 2017 for export of services. A person incorporated in India under the Companies Act, 2013 and a person incorporated under the laws of any other country are to be treated as separate legal entities and would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for considering a supply of service as export of services;

c. Clarification in respect of certain GST related issues:

1. With effective from 1st jan 2021 , the date of issuance of debit note (and not the date of under lying invoice) shall determine the relevant financial year for the purpose of section 16(4) of CGST Act, 2017;
2. There is no need to carry the physical copy of tax invoice in cases where invoice has been generated by the supplier in the manner prescribed under rule 48(4) of the CGST Rules, 2017;
3. Only those goods which are actually subjected to export duty i.e., on which some export duty has to be paid at the time of export, will be covered under the restriction imposed under section 54(3) of CGST Act, 2017 from availment of refund of accumulated ITC.

5. Provision to be incorporated in in CGST Rules, 2017 for removing ambiguity regarding procedure and time limit for filing refund of tax wrongfully paid as specified in section77(1) of the CGST/SGST Act and section 19(1) of the IGST Act.

J. Measures for streamlining compliances in GST

1. Aadhaar authentication of registration to be made mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration.
2. Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in
FORM GSTR-3B.
3. Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.
4.Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1 , if he has not furnished the return in FORM GSTR-3B for the preceding month.
5.Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in
FORM GSTR-2B

K. GST Council has also recommended amendments in certain provisions of the Act and Rules.

.Note: The recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of all stakeholders. The same would be given effect through relevant Circulars/ Notifications/ Law amendments which alone shall have the force of law.

Release ID: 1755925)

Recommendations of 43rd GST Council meeting

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:

1. 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

1. Extension of due date of filing GSTR-1/ IFF for the month of May 2021
   by 15 days.
2. Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
3. Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
4. 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.
5. 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.

5. 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

GIST of Notifications issued on 1st May 2021

GIST of Notifications issued on 1st May 2021

Due to the ongoing second wave of the Covid – 19 pandemic, there are a lot of restrictions imposed on the business and common person to curtail the spread of the virus. As a  part of lockdowns or restrictions, the trade and industry cannot run the business full-fledged and causing a lot of hardships in the filing of returns or meet the compliance requirements. Keeping in view of all these, the Government has provided relaxation under GST in for wavier/part wavier of interest, late fee and extension of due date for filing of returns.

Notification No 8/2021 – Central Tax Dated 1^st May 2021 – Reduction & wavier of Interest for delayed payment of taxes

Interest will not be applicable for the delay in filing of returns for the first 15 days, and from 16^th day to 30^th day, it will be charged at 9%, and after 30 days, the interest rate will be 18%, i.e., the normal rate. The above benefit will be applicable for the following class of persons for the months of April and May 2021

1. Taxpayers having aggregate turnover above ₹ 5 crores during the previous financial year
2. Taxpayers having aggregate turnover up to ₹ 5 crores during the previous financial year and filing GSTR – 1
3. Taxpayers having aggregate turnover up to ₹ 5 crores during the previous financial year and filing returns under QRMP (Quarterly Returns Monthly Payment) Scheme  
4. Taxpayers who are availing of the Composition Scheme benefit

The above notification is a retrospective notification and is effective from 18^th April 2021

Notification No 9/2021 – Central Tax Dated 1^st May 2021 – Relaxation in Late fee

Levy of the late fee has been waived for the taxpayers who are filing GSTR – 3B

1. Late fee has been waived off for the first 15 days for taxpayers having aggregate turnover above ₹ 5 crores during the previous financial year
2. Late fee has been waived off for the first 30 days for taxpayers who are filing GSTR – 3B on a monthly basis and quarterly basis having aggregate turnover up to ₹ 5 crores during the previous financial year

The above notification is a retrospective notification and is effective from 20^th April 2021

Notification No 10/2021 – Central Tax Dated 1^st May 2021

The due date for filing of GSTR – 4 by composition taxpayers has been extended to 31^st May 2021.

The above notification is a retrospective notification and is effective from 30^th April 2021

Notification No 11/2021 – Central Tax Dated 1^st May 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 25th April 2021 to 31st May 2021.

Notification No 12/2021 – Central Tax Dated 1^st May 2021 – Extension in filing due date for filing of GSTR – 1

The due date for filing of GSTR – 1 for the month of April 2021 has been extended to 26^th May 2021.

Notification No 13/2021 – Central Tax Dated 1^st May 2021 – Relaxation in matching

Relaxation in matching for the availing input tax credit for April 2021 has been provided, and the taxpayers have to do matching for the months of April and May together while filing GSTR – 3B for the month of May 2021.

Taxpayers who are filing returns under QRMP Scheme can file IFF (invoice furnishing facility) by 28^th May 2021.

Notification No 14/2021 – Central Tax Dated 1^st May 2021 – Relaxation in compliance proceedings due date

The time limits for the completion of compliance or any action by the tax authorities or any person which are  falling between 15^th April 2021 to 30^th May 2021 has been extended in the following cases

 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

1. Related to Time of Supply
2. If the turnover of the composition taxpayer has crossed the threshold during this period
3. Section 25 – registration procedure
4. Section 27 – procedure-related to casual taxable person and the non-resident taxable person
5. Section 31 – Tax Invoice
6. Section 37 – provisions related to the filing of returns for outward supplies
7. Section 47 – provisions related to levy of late fee
8. Section 50 – provisions related to ley of interest
9. Section 69 – provisions related to power to arrest errant taxpayers
10. Section 90 – provisions related to Liability of partners of firm to pay tax
11. Section 122 – provisions related to penalties for certain offenses
12. Section 129 – provisions related to detention, seizure and release of goods and conveyance under transit
13. Section 39 – except for provisions related to sub-section (3), (4) and (5) related to TDS deductors, ISD and not resident taxpayers
14. Section 68 – provisions related to e-waybill

Provided that where, any time limit for completion of any action, by any authority or by any person, specified in, or prescribed or notified under rule 9 of the Central Goods and Services Tax Rules, 2017, falls during the period from the 1st day of May 2021 to the 31st day of May 2021, and where completion of such action has not been made within such time, then, the time limit for completion of such action, shall be extended up to the 15th day of June 2021;

38th GST Council’s decisions regarding Law and Procedure related changes

The 38^th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman here today. The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur  besides Finance Ministers of States & UTs and senior officers of Ministry of Finance.  The GSTCouncil recommended the following:

1. Grievance Redressal Committees (GRC) will be constituted at Zonal/State level with both CGST and SGST officers and including representatives of trade and industry and other GST stakeholders (GST practitioners and GSTN etc.). These committees will address grievances of specific/ general nature of taxpayers at the Zonal/ State level.
2. Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2017-18 to be extended to 31.01.2020.
3. Following measures would be taken to improve filing of FORM GSTR-1:
   1. waiver of late fee to be given to all taxpayers in respect of all pending FORM GSTR-1from July 2017 to November 2019, if the same are filed by 10.01.2020.
   2. E-way Bill for taxpayers who have not filed their FORM GSTR-1 for two tax periods shall be blocked.
4. Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.
5. To check the menace of fake invoices, suitable action to be taken for blocking of fraudulently availed input tax credit in certain situations.
6. A Standard Operating Procedure for tax officers would be issued in respect of action to be taken in cases of non-filing of FORM GSTR 3B returns.
7. Due date of filing GST returns for the month of November, 2019 to be extended in respect of a few North Eastern States.
8. The Council also approved various law amendments which will be introduced in Budget 2020.

[This note presents the decision of the GST Council in simple language for easy understanding which would be given effect through Gazette notifications/ circulars which alone shall have force of law. The same will be made effective from the date as specified in such notifications / circulars.]

 

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RM/KMN

FAQ – 14

As a taxpayer, if I do not file the Annual return by the due date or on the due date, is there any late fee i need to file if i am filing it after the due date?

Yes, a late fee is applicable and the provisions for the same are given in Section 47(2) of the CGST Act. Late is Rs 100 per day or maximum up to 0.25% of the turn over in a state.

Extension of Due Dates for filing of FORM GSTR-1 and FORM GSTR-3B in certain cases

It has been observed that the number of taxpayers who have filed FORM GSTR-3B is substantially higher than the number of taxpayers who have furnished FORM GSTR-1. Non-furnishing of FORM GSTR-1 is liable to late fee and penalty as per the provisions of the GST law. In order to encourage taxpayers to furnish FORM GSTR-1, a one-time scheme to waive off late fee payable for delayed furnishing of FORM GSTR-1 for the period from July, 2017 to September, 2018 till 31.10.2018 has been launched.

In this regard, the due date for furnishing FORM GSTR-1 for the period from July, 2017 to September, 2018 has been extended till 31^st October, 2018 for all registered persons having aggregate turnover above Rs 1.5 crores including the registered persons in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry). For taxpayers having aggregate turnover up to Rs 1.5 crores, the due date for furnishing FORM GSTR-1 for the quarters from July, 2017 to September, 2018 has been extended till 31^st October, 2018. Notification Nos. 43 and 44/2018 – Central Tax dated 10^th September, 2018 have been issued in this regard. For registered persons having aggregate turnover up to Rs 1.5 crores in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing FORM GSTR-1 for the quarter July, 2018 to September, 2018 would continue to remain as 15^th November, 2018 as notified vide notification No. 38/2018-Central Tax dated 24^th August, 2018.

Further, for those taxpayers who will now be migrating to GST as per the procedure specified in notification No. 31/2018-Central Tax, dated 06.08.2018, the last date for furnishing the details of outward supplies of goods or services or both in FORM GSTR-1 and for filing the return in FORM GSTR-3B for the months of July, 2017 to November, 2018 has been extended till 31.12.2018. Notification Nos. 45, 46 and 47/2018 – Central Tax dated 10^th September, 2018 have thus been issued for extension of dates for filing FORM GSTR-3B.

It is hereby clarified that as per the provisions of section 16 (4) of the Central Goods and Services Tax Act, 2017, the registered person shall not be entitled to take input tax credit in respect of any invoice after the due date of furnishing of the return for the month of September following the end of financial year to which such invoice pertains; or furnishing of the relevant annual return, whichever is earlier. The taxpayers are thus, advised to furnish their returns on time to ensure that input tax credit does not become time barred.

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DSM/RM/KA

(Release ID: 1545562) Visitor Counter : 7993

43/2018-Central Tax ,dt. 10-09-2018

44/2018-Central Tax ,dt. 10-09-2018

45/2018-Central Tax ,dt. 10-09-2018

46/2018-Central Tax ,dt. 10-09-2018

47/2018-Central Tax ,dt. 10-09-2018

48/2018-Central Tax ,dt. 10-09-2018

 

 

GST Tip – 407

As per Notification No 64/2017 – Central Tax, the late fee for per day for filing of GSTR – 3B is Rs 25 in case of return where the taxpayer has to pay tax and Rs 10 per day in cases where the taxpayer has to file Nil return.

GST Tip – 372

As per Notification No. 50/2017 – Central Tax dated 24th Oct 2017, the late for the month of August and September has been waived off for all the taxpayers who have not filed GSTR – 3B by the due date.

Late fee waived for July, GSTR – 3B

Late fee waived for delayed filing of GSTR – 3B for the month of July 2017 http://india-gst.in/wp-content/uploads/2017/09/notfctn-28-central-tax-english.pdf

GST Tip – 296

Section 6.1 of GSTR – 3B, details of payment for GST has to be shown. Amount of Tax Payable, Amount of Tax paid under GST utilizing the ITC and balance amount in cash has to be shown along with interest and late if any payable for CGST, SGST, UTGST, IGST and Cess.