Highlights of 43rd GST Council meet dated 28th May, 2021
1. A number of specified COVID-19 related goods have been recommended for full exemption from IGST. This exemption shall be valid upto 31.08.2021
2. Fees charged for services provided by way of examination including entrance examination are exempt from GST.
3. GST on MRO services in respect of ships/vessels shall be reduced to 5% (from 18%).
4. To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under if return furnished during 01.06.2021 to 31.08.2021: –a. Late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;b. Late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST and SGST) per return for other taxpayers;
5. The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 to be capped, per return, as below:
a. Nil Tax Liability or Nil GSTR 1 return- INR 500 per return
i) Turnover upto 1.5 crores- Max.Penalty- INR 2000
ii) Turnover more than 1.5 crores upto 5 crores- INR 5000
iii) Turnover more than 5 crores- INR 10,000
6. COVID-19 related relief measures for taxpayers:In addition to the relief measures already provided to the taxpayers vide the notifications issued on 01.05.2021, the following further relaxations are being provided to the taxpayers:
A. For small taxpayers (aggregate turnover upto Rs. 5 crore)
a. March & April 2021 tax periods:
i. NIL rate of interest for first 15 days from the due date of furnishing the return in FORM GSTR-3B or filing of PMT-06 Challan, reduced rate of 9% thereafter for further 45 days and 30 days for March,2021 and April, 2021 respectively.
ii. Waiver of late fee for delay in furnishing return in FORM GSTR-3B for the tax periods March / QE March, 2021 and April 2021 for 60 days and 45 days respectively, from the due date of furnishing FORM GSTR-3B.
iii. NIL rate of interest for first 15 days from the due date of furnishing the statement in CMP-08 by composition dealers for QE March 2021, and reduced rate of 9% thereafter for further 45 days.
b. For May 2021 tax period:
i. NIL rate of interest for first 15 days from the due date of furnishing thereturn in FORM GSTR-3B or filing of PMT-06 Challan, and reduced rate of 9% thereafter for further 15 days.
ii. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for taxpayers filing monthly returns for 30 days from the due date of furnishing FORM GSTR-3B.
B. For large taxpayers (aggregate turnover more than Rs. 5 crore)
i. A lower rate of interest @ 9% for first 15 days after the due date of filing return in FORM GSTR-3B for the tax period May, 2021.
ii. Waiver of late fee for delay in furnishing returns in FORM GSTR-3B for the tax period May, 2021 for 15 days from the due date of furnishing FORM GSTR-3B.
C.Certain other COVID-19 related relaxations to be provided, such as
1. Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.
2. Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.
3. Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.
4. Cumulative application of rule 36(4) for availing ITC for tax periods April,May and June, 2021 in the return for the period June, 2021.
5. Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.
D. Relaxations under section 168A of the CGST Act: Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, to be extended upto 30th June, 2021, subject to some exceptions.