COVID-19: Centre announces various relief measures for taxpayers under GST

The Centre on Sunday announced various relief measures for taxpayers under the Goods & Services Tax (GST) law amid the challenges being faced by the taxpayers owing the COVID-19 crisis. The measures were announced under 3 broad categories- 1. Reduction in rate of interest, 2. Waiver of late fee, 3. Extension of the due date of filing certain forms. 

Under Reduction in rate of interest, the Ministry of Finance has rolled out concessional rates of interest in lieu of the normal rate of interest of 18% per annum for delayed tax payments. These have been announced -

• For registered persons having aggregate turnover above Rs. 5 crore- A lower rate of interest of 9 per cent for the first 15 days from the due date of payment of tax and 18 per cent thereafter has been announced.
• For registered persons having aggregate turnover upto Rs. 5 crore-  Nil rate of interest for the first 15 days from the due date of payment of tax, 9 per cent for the next 15 days, and 18 per cent thereafter, for both normal taxpayers and those under QRMP scheme has been notified.
• For registered persons who have opted to pay tax under the Composition scheme-  NIL rate of interest for first 15 days from the due date of payment of tax and 9 per cent for the next 15 days, and 18 per cent thereafter has been notified.

Under a waiver of late fee, measures have been announced for-

• Registered persons having aggregate turnover above Rs. 5 crore- Late fee has been waived for 15 days in respect of returns in FORM GSTR-3B furnished beyond the due date.
• For registered persons having aggregate turnover upto Rs. 5 crore- Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March, 2021 and April, 2021.

Extension of due date has been announced for filing GSTR-1, IFF, GSTR-4 and ITC-04. The Due date of filing FORM GSTR-1 and IFF for the month of April (due in May) has been extended by 15 days, while that of FORM GSTR-4 for FY 2020-21 has been extended from 30th April, 2021 to 31st May, 2021. Meanwhile, the due date of furnishing FORM ITC-04 for Jan-March, 2021 quarter has been extended from 25th April, 2021 to 31st May, 2021.

Moreover, certain amendments have also been announced in CGST Rules apart from a relaxation in availing of ITC and an Extension in statutory time limits under section 168A of the CGST Act.