COVID Relief Measures issued by CBIC under GST Law
by ReinHeads Team | May 4, 2021
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COVID Relief Measures issued by CBIC under GST Law
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Dear All,
In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances under GST law due to the outbreak of the second wave of COVID-19, the Central Board of Indirect Taxes and Customs (‘CBIC’) has issued notifications dated 1st May, 2021, providing various relief measures for taxpayers.
We have hereinbelow summarized the key aspects of the Notifications issued by the CBIC:
- Waiver of late fees for delayed filing of GSTR-3B
| Category of Taxpayer |
Tax Period |
Turnover Criteria |
Waiver of late fees |
| Regular |
March & April 2021 |
More than 5 crores in preceding financial year (‘PFY’) |
For 15 days |
| Regular (monthly return) |
March & April 2021 |
Upto 5 crores in PFY
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For 30 days |
| Regular (quarterly return) |
January 2021 to March 2021 |
- Extension in due dates of following compliances
| Category of Taxpayer |
Tax Period |
GST Return |
Due Date |
| Regular |
April 2021 |
GSTR-1 |
26th May 2021 |
| QRMP Scheme Taxpayer |
April 2021 |
Form IFF |
1st May to 28th May 2021 |
| Composition Scheme Taxpayer |
FY 2020-21 |
Annual Return GSTR-4 |
31st May 2021 |
| Taxpayer required to file declaration for dispatch/ receipt of goods to/from a job worker |
January 2021 to March 2021 |
Form ITC-04 |
31st May 2021 |
- Reduction in interest payment for delayed payment of GST
| Category of Taxpayer |
Tax Period |
Turnover Criteria |
Reduced Interest Rate |
| Regular |
March & April 2021 |
More than 5 crores in PFY |
For first 15 days- 9% Thereafter- 18% |
| Regular (monthly return) |
March & April 2021 |
Upto 5 crores in PFY |
For first 15 days- Nil
For next 15 days- 9% Thereafter- 18% |
| Regular (quarterly return) |
January 2021 to March 2021 |
Upto 5 crores in PFY |
| Composition Scheme Taxpayer |
January 2021 to March 2021 |
All |
- Relaxation in availment of ITC i.e., Rule 36(4) for April 2021
Rule 36(4) restricts availment of ITC beyond 5% of the eligible ITC reflected in GSTR-2A/2B. Such rule shall apply cumulatively for the period April & May 2021 and GSTR-3B of May 2021 shall contain cumulative adjustment of ITC for the said both months.
- Extension of time limit for issuance of Refund Order
In cases where notice has been issued for rejection of refund claim, in full or in part and where the time limit for issuance of Refund Order falls on/between 15th April 2021 and 30th May 2021, the time limit for issuance of the said order shall be extended to fifteen days after the receipt of reply to the notice from the registered person or the 31st day of May 2021, whichever is later.
- Verification of GST Registration/ approval
Time limit for verification of application for fresh GST Registration and approval falling on/between 1st May 2021 and 31st May 2021 extended till 15th June 2021.
For any compliance/action due on part of any authority/any person falling on/between 15th April 2021 and 30th May 2021, time limit extended till 31st May 2021, subject to following key inclusions/exclusions under the CGST Act:
| Inclusions |
Exclusion |
| Due date of following returns for the tax period April 2021 extended till 31st May 2021:
ü Section 39(3): TDS Return (GSTR-7)
ü Section 39(4): ISD (GSTR-6)
ü Section 39(5): NRTP (GSTR-5)
· Passing of order/ issuance of any notice/intimation/sanction/approval, etc.
· Filing of any appeal/reply/application |
· E-way bill requirements while inspection of goods in movement under Section 68
· Issuance of Tax invoice
· Furnishing details of outward supplies, levy of interest/ late fee provisions
· Section 10(3): Withdrawal of composition scheme
· Determination of time of supply (Chapter IV)
· Liability of partners of firm to pay tax under Section 90
· Penalty and detention provisions under Section 122 and 129
· Registration related provisions under Section 25 and 27 |
*The above relaxations have been introduced vide Central Tax Notification No. 8, 9, 10, 11, 12, 13 and 14 dated 01 May 2021. |
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