India’s GST Council recommends relief to taxpayers regarding late fee

The forty three^rd GST Council assembly, held underneath the chairmanship of India’s finance and corporate affairs minister Nirmala Sitharaman yesterday, has advised an amnesty scheme to provide reduction to taxpayers pertaining to late price for pending returns. It has also rationalised late price for long run tax periods, and simplified once-a-year return for FY 2020-21.

The GST Council has produced the next suggestions relating to changes in GST charges on offer of goods and services and changes relevant to GST regulation and technique:

Actions FOR TRADE FACILITATION:

1. Amnesty Scheme to provide reduction to taxpayers pertaining to late price for pending returns:

To provide reduction to the taxpayers, late price for non-furnishing Sort GSTR-3B for the tax periods from July, 2017 to April, 2021 has been lessened / waived as underneath: –

1. late price capped to a utmost of Rs 500/- (Rs. 250/- just about every for CGST & SGST) per return for taxpayers, who did not have any tax legal responsibility for the claimed tax periods
2. late price capped to a utmost of Rs one thousand/- (Rs. 500/- just about every for CGST & SGST) per return for other taxpayers

The lessened fee of late price would implement if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.

 

2. Rationalization of late price imposed underneath segment forty seven of the CGST Act:

To minimize load of late price on smaller sized taxpayers, the higher cap of late price is becoming rationalized to align late price with tax legal responsibility/ turnover of the taxpayers, as follows:

A. The late price for delay in furnishing of Sort GSTR-3B and Sort GSTR-1 to be capped, per return, as down below:

(i)   For taxpayers obtaining nil tax legal responsibility in GSTR-3B or nil outward materials in GSTR-1, the late price to be capped at Rs 500 (Rs 250 CGST + Rs 250 SGST)

(ii)  For other taxpayers:

1. For taxpayers obtaining Annual Combination Turnover (AATO) in preceding yr upto Rs 1.five crore, late price to be capped to a utmost of Rs 2000 (one thousand CGST+one thousand SGST)
2. For taxpayers obtaining AATO in preceding yr among Rs 1.five crore to Rs five crore, late price to be capped to a utmost of Rs 5000 (2500 CGST+2500 SGST)
3. For taxpayers obtaining AATO in preceding yr earlier mentioned Rs five crores, late price to be capped to a utmost of Rs ten thousand (5000 CGST+5000 SGST).

B. The late price for delay in furnishing of Sort GSTR-4 by composition taxpayers to be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return, if tax legal responsibility is nil in the return, and Rs 2000 (Rs one thousand CGST + Rs one thousand SGST) per return for many others.

 

C. Late price payable for delayed furnishing of Sort GSTR-7 to be lessened to Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a utmost of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.

All the earlier mentioned proposals to be produced applicable for prospective tax periods.

3. COVID-19 relevant reduction actions for taxpayers:

In addition to the reduction actions already furnished to the taxpayers vide the notifications issued on 01.05.2021, the next more relaxations are becoming furnished to the taxpayers:

1. For small taxpayers (mixture turnover upto Rs. five crore)

1. March & April 2021 tax periods:
   1. NIL fee of curiosity for initially 15 times from the thanks date of furnishing the return in Sort GSTR-3B or filing of PMT-06 Challan, reduced fee of nine% thereafter for more 45 times and thirty times for March,2021 and April, 2021 respectively.
   2. Waiver of late price for delay in furnishing return in Sort GSTR-3B for the tax periods March / QE March, 2021 and April 2021 for sixty times and 45 times respectively, from the thanks date of furnishing Sort GSTR-3B.
   3. NIL fee of curiosity for initially 15 times from the thanks date of furnishing the statement in CMP-08 by composition dealers for QE March 2021, and lessened fee of nine% thereafter for more 45 times.

 

2. For May possibly 2021 tax period of time:
   1. NIL fee of curiosity for initially 15 times from the thanks date of furnishing the return in Sort GSTR-3B or filing of PMT-06 Challan, and lessened fee of nine% thereafter for more 15 times.
   2. Waiver of late price for delay in furnishing returns in Sort GSTR-3B for taxpayers filing monthly returns for thirty times from the thanks date of furnishing Sort GSTR-3B.

2. For substantial taxpayers (mixture turnover much more than Rs. five crore)

1. A decrease fee of curiosity @ nine% for initially 15 times after the thanks date of filing return in Sort GSTR-3B for the tax period May possibly, 2021.
2. Waiver of late price for delay in furnishing returns in Sort GSTR-3B for the tax period May possibly, 2021 for 15 times from the thanks date of furnishing Sort GSTR-3B.

 

four.  Sure other COVID-19 relevant relaxations to be furnished, these as

1. Extension of thanks date of filing GSTR-1/ IFF for the month of May possibly 2021 by 15 times.
2. Extension of thanks date of filing GSTR-four for FY 2020-21 to 31.07.2021.
3. Extension of thanks date of filing ITC-04 for QE March 2021 to thirty.06.2021.
4. Cumulative application of rule 36(four) for availing ITC for tax periods April, May possibly and June, 2021 in the return for the period of time June, 2021.
5. Enabling filing of returns by businesses employing Electronic Verification Code (EVC), instead of Electronic Signature Certificate (DSC) till 31.08.2021.

five.  Relaxations underneath segment 168A of the CGST Act: Time restrict for completion of numerous steps, by any authority or by any individual, underneath the GST Act, which falls during the period of time from 15^th April, 2021 to 29^th June, 2021, to be prolonged upto thirty^th June, 2021, matter to some exceptions.

[Wherever the timelines for steps have been prolonged by the Hon’ble Supreme Court, the exact would implement]

6. Simplification of Annual Return for Monetary Calendar year 2020-21:

1. Amendments in segment 35 and forty four of CGST Act produced by way of Finance Act, 2021 to be notified. This would relieve the compliance need in furnishing reconciliation statement in Sort GSTR-9C, as taxpayers would be equipped to self-certify the reconciliation statement, instead of having it accredited by chartered accountants. This improve will implement for Annual Return for FY 2020-21.
2. The filing of once-a-year return in Sort GSTR-nine / 9A for FY 2020-21 to be optional for taxpayers obtaining mixture once-a-year turnover upto Rs 2 Crore
3. The reconciliation statement in Sort GSTR-9C for the FY 2020-21 will be demanded to be submitted by taxpayers with once-a-year mixture turnover earlier mentioned Rs five Crore.

Retrospective modification in segment 50 of the CGST Act with impact from 01.07.2017, furnishing for payment of curiosity on internet funds basis, to be notified at the earliest.

OTHER Actions     

1. GST Council advised amendments in selected provisions of the Act so as to make the existing process of GSTR-1/3B return filing as the default return filing process in GST.

 

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Fibre2Fashion News Desk (RKS)