GST Compliance Relaxation in GST Regime issued on 1st May 2021

In a bid to provide relief to COVID-19 hit businesses, the finance ministry had on 1st May 2021 notified nine changes in the compliance requirements under the Goods and Services Tax (GST) regime. This includes an extension of the deadline for filing GST returns, reduced quantum of late fee, and even late fee waiver in some cases for the months of March and April 2021.

1. Waiver of Late Fees for delayed filing of GSTR 3B Return for the month of March & April 2021 [Notification No. 9/2021-CT dated 1st May 2021]

Late fees for delayed filing of GSTR-3B return has been waived for different classes of taxpayers as under:

Turnover Exceeding Rs 5 Crs in Preceding FY (Monthly) - GSTR 3B

Turnover up to Rs 5 Crs in Preceding FY (Monthly) - GSTR 3B

Turnover up to Rs 5 Crs in Preceding FY (Quarterly - QRMP Scheme) - GSTR 3B

2. Furnishing the statement of outward supplies in FORM GSTR-1 or Form- IFF [Notification No. 12/2021-CT & Notification No. 13/2021 both dated 1st May 2021]

In terms of Notification No. 12/2021-CT dated 01.05.2021, the due date for filing statement of outward supplies in FORM GSTR-1 for the month of April 2021 is extended to 26th May 2021.

Further by virtue of Notification No. 13/2021-CT dated 01.05.2021, the due date for furnishing details of outward supplies for the month of April 2021 is extended to 28th May 2021.

Waiver of late fees for filing of GSTR 1, IFF and GSTR 4

3. Extension in due date for furnishing return by composition taxpayers [Notification No. 10/2021-CT dated 1st May 2021]:

The due date for furnishing return by composition taxpayers on an annual basis in FORM GSTR-4 for the FY 2020-21 has been extended till the 31st May, 2021.

4. Extension in due date for furnishing the declaration in ITC-04 [Notification No. 11/2021-CT dated 1st May 2021]

The due date for furnishing the declaration in Form ITC-04 in respect of goods dispatched to a job worker or received from a job worker for the quarter Jan’21-Mar’21 has been extended to 31st May, 2021.

5. Reduction in Interest Rate for delayed payment of GST [Notification No. 8/2021-CT dated 1st May 2021]

6. Relaxation in restriction on availment of Input Tax Credit under rule 36(4) [Notification 13/2021-CT dated 1st May 2021]

Rule 36(4) restricts the availment of input tax credit beyond 5% of the ITC reflected in Form GSTR 2A/2B.

However said restriction will not apply in individual months of April & May 2021, but will apply cumulatively for the period April & May, 2021 and the return in FORM GSTR-3B for the month of May, 2021 is to be furnished with the cumulative adjustment of input tax credit for those months.

7. Extension of due date for furnishing TDS/TCS Returns [Notification No. 14/2021-CT dated 1st May 2021]

The due date for furnishing statement of TDS deducted/ TCS Collected for the month of April, 2021 in Form GSTR-7/ Form GSTR-8 have been extended till 31st May, 2021.

8. Extension of due date for filing return by Input Service Distributor/ non-resident taxable person [Notification No. 14/2021-CT dated 1st May 2021]

The due date of filing return by Input Service Distributor/ non-resident taxable person for the month of April, 2021 in Form GSTR-6/ Form GSTR-5 have been extended till 31st May, 2021.

9. Relaxation of time limit for compliance (which falls during the period from 15th April 2021 to 30th May 2021 till 31st May 2021) under GST Law [Notification No. 14/2021-CT dated 1st May 2021]

Non-applicability of above extensions in specified cases as under

The aforesaid extensions of time shall not be applicable in following cases:

• For determination of "Time of Supply" as envisaged in Chapter IV of CGST Act, 2017;
• For withdrawal from composition scheme where turnover exceeds threshold limits as prescribed under section-10(3);
• For application for New Registration u/s 25 or reg. of casual taxable person u/s 27
• For issuance of Tax Invoice u/s 31
• For filing of GSTR-1 u/s 37, Levy of Late Fees u/s 47 or levy of Interest for delayed filing of returns u/s 50 except as notified separately as per above paragraphs.
• Power of arrest u/s 69; Liability of partners of firm to pay tax envisaged u/s 90.
• Levy of Penalty for certain offences u/s 122
• Detention, seizure and release of goods and conveyances in transit u/s 129.
• Filing of return u/s 39 except sec 39(3), 39(4) and 39(5)
• For compliance of E-way bill related provision u/s 68 i.e. generation of e-way bill, inspection of goods in movement u/s 68 etc.

Summary