Recent Relaxation in Interest & Late Fees under GST

 

Recent Relaxation in Interest & Late Fees under GST

The Department of Revenue has taken several relief measures.

Here are some important information:

·         A conditional late fee amnesty scheme brought out in respect of pending returns in FORM GSTR-3B for the tax periods from July, 2017 to April, 2021.

HIGHLIGHTS OF THE SCHEME: –

1.      Applicable only if GSTR-3B returns for these tax periods are furnished during the period between 01.06.2021 to 31.08.2021;

2.      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;

3.      Late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers. 

·         Relaxation in ITC availment under Rule 36(4) – i.e. 105% cap on availing ITC in FORM GSTR-3B – for the months of April, May and June 2021. It shall apply cumulatively for the three months in the month of June GSTR 3B.

·         Filing of GSTR-3B and GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature Certificate (DSC), now enabled for the period from the 04.2021 to 31.08.2021.

·         Reduction in rate of interest: Concessional rates of interest, in lieu of the normal rate of interest of 18% per annum, for delayed tax payments have been provided for the months of March, April and May, 2021.

HIGHLIGHTS: –

1.      Taxpayer having aggregate more than 5 crore if files GSTR-3B for the period May’21 within 15 days of due date i.e., till 4th July, the interest on cash liability to be charged @9% p.a. Interest to be charged @18% p.a., if filed thereafter.

2.      Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period April’21 within 30 days of due date i.e., till 19th June, the interest on cash liability to be charged @9% p.a. Interest to be charged @18% p.a., if filed thereafter.

3.      Taxpayer having aggregate upto 5 crores if files GSTR-3B for the period May’21 within 15 days of due date i.e., till 4th July, the interest on cash liability to be charged would be NIL, @9% p.a. if filed till 19th July and @18% p.a. if filed thereafter.

Cl Cick Here : For Income tax return filling