GST

All about recent Changes in GST Late Fees, Interest Rate & Due Dates

Recent changes in GST Late fees
ALL ABOUT RECENT CHANGES IN GST LATE FEES, INTEREST RATE AND DUE DATES

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  Posted on October 27, 2021

All about recent Changes in GST Late Fees, Interest Rate & Due Dates

Recently, in pursuant to the GST Council Meeting, the 43rd Meeting which was held on 28th of May 2021, CBIC (Central Board of Indirect Taxes & Customs), issued a series of notifications with respect to relaxing of GST Compliance requirements. The notification with regard to the late fees, interest rate, and due dates are given below in detail for deeper understanding.

Reduction of Late Fees under GST

The Government of India and CBIC through Notification No. 19/2021, dated 1st June 2021, has waived the late fee payable, in the below-given manner:

  1. For registered persons who have failed to furnish the return in Form GSTR-3B for the months or quarter of July 2017 to April 2021, by the GST due date then the following shall be payable:

a.i) 1st June and 31st August 2021, and the amount of CGST and SGST/UTGST payable is nil then the late fee payable shall be waived in excess of INR 500,

a.ii) 1st June and 31st August 2021, and the amount of CGST and SGST/UTGST payable is not nil then the late fee payable shall be waived in excess of INR 1,000.

  1. For a tax period commencing from June 2021 onwards or for a quarter ending June 2021, then the late fee payable shall be waived in excess of;

b.i) INR 500 in case of Registered Persons whose CGST and SGST/UTGST payable as per the said return is NIL,

b.ii) INR 2,000 in case of Registered Persons having an aggregate turnover of up to INR 1.5 crores in the preceding financial year, other than those covered under (b.i).

b.iii) INR 5,000 in case of those Registered Persons who is having an aggregate turnover of more than INR 1.5 crores and up to INR 5 crores in the preceding financial year, other than those specified in (b.i).

Relief by Waiving the Interest

As per Notification 18/2021 issued by CBIC and the Government of the country, a granting of relief by waiving the interest to normal and composition taxpayers for the period of March, April, and May 2021 was done. The details have been given below regarding the same:

  1. The filing of Form CMP-08 for the composition tax payers for the quarter of March 2021, on the due date of 18th April 2021 has the following reduction in interest;

a.i) First 15 days from due date: No interest

a.ii) Next 45 days: 9%

a.iii) From the 61st day: 18%

  1. Relaxation to the normal taxpayers in filing the Form GSTR-3B;

b.i) For the tax period March 2021 (due date for filing return 20th April), if the aggregate annual turnover is less than INR 5 crore, then 9% for the first 15 days and 18% from the 16th day onwards. And the waiver of the late fee shall be till 5th May 2021.

If the aggregate annual turnover is more than INR 5 crore, it will be nil for the first 15 days, then 9% for the next 45 days, and 18% from the 60th day onwards. And the waiver of the late fee shall be till 19th June 2021.

b.ii) For the tax period April 2021 (due date for filing return 20th May), if the aggregate annual turnover is less than INR 5 crore, then 9% for the first 15 days and 18% from the 16th day onwards. And the waiver of the late fee shall be till 4th June 2021.

If the aggregate annual turnover is more than INR 5 crore, it will be nil for the first 15 days, then 9% for the next 30 days, and 18% from the 45th day onwards. And the waiver of the late fee shall be till 4th July 2021.

b.iii) For the tax period May 2021 (due date for filing return 20th June), if the aggregate annual turnover is less than INR 5 crore, then 9% for the first 15 days and 18% from the 16th day onwards. And the waiver of the late fee shall be till 5th July 2021.

If the aggregate annual turnover is more than INR 5 crore, it will be nil for the first 15 days, then 9% for the next 15 days, and 18% from the 30th day onwards. And the waiver of the late fee shall be till 20th July 2021.

  1. c) Relaxation in the filing of Form GSTR-3B on a quarterly basis by Taxpayers under QRMP Scheme;

For the tax period of March 2021, the due date of filing is 22nd or 24th of April 2021, the interest rates shall be 9% from day 16 to 45 and 18% from the 61st day onwards. The waiver of the late fee has been allowed till the 21st and 23rd of June 2021.

Extension of Due Dates

The Government along with CBIC, vide various notifications specified below has notified regarding the extension of due dates for various compliances and tax payment under GST;

– Notification No. 12/2021-CT, dated 1st May 2021,

– Notification No 17/2021 CT, dated 1st June 2021,

– Notification No 14/2021-CT, dated 1st May 2021,

– Notification No 24/2021-CT, dated 1st June 2021,

– Notification No 25/2021-CT, dated 1st June 2021,

– Notification No 26/2021-CT, dated 1st June 2021.

The details which have been given by the notifications are as below:

  • Form GSTR-1 which is a monthly return to be filed by normal taxpayers by the 11th of the succeeding month was extended for May 2021, from 11th of June 2021 to 26th of June 2021.
  • Similarly, the Form IFF (Invoice Furnishing Facility) which is an optional form to be filed by normal taxpayers under the QRMP (Quarterly Tax Return Filing and Monthly Payment of Taxes) Scheme, on the 13th of the succeeding month was extended for May 2021 from the 13th of June 2021 to 28th of June 2021.
  • Form GSTR-4, which is the annual return to be filed by the composition taxpayers for the FY (Financial Year) 2020-21 on or before 30th April 2021 was extended to 31st of July 2021.
  • Form GSTR-5, which is the form to be filed by Non-Resident Tax Payers (NRTP), in case of the tax period March/April/May 2021, the due date of which falls on 20th April/May/June 2021 has been extended to 30th June 2021.
  • Form GSTR-6, which is to be filed by the Input Service Distributors (ISD) for the tax period of April/May 2021 is having a due date of 13th May/June 2021 has now been extended to 30th of June 2021.
  • Form GSTR-7, TDS, or Tax Deductors at Source are the ones to file this on the 10th of every succeeding month, and as per the notifications given by CBIC, the same for the month of May and June 2021 was extended from the 10th of May and June 2021 to 30th of June 2021.
  • Form GSTR-8, which is the one to be filed by TCS or Tax Collectors at Source on the 10th of every succeeding month was extended from 10th of May and June 2021 to 30th of June 2021.
  • And due date for filing of ITC-04 which is to be filed by Principal or the Manufacturer for goods sent/received/supplied from Job Worker for the quarter starting on January 2021 to March 2021, was extended from 25th April 2021 to 30th of June 2021.

 

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