Big GST Relief For Businesses Under Rs 5 Crore Turnover: No Late Fees, Reduced Interest
The second wave of coronavirus pandemic has crippled the economy to a great extent, in addition to worsening the health conditions in the country.
Amidst the declining employment rate and sources of earnings, the Government of India has announced various relief measures for Indian taxpayers, under the GST law, in view of the Covid-19 pandemic.
This includes measures related to late fee waiver, reduction in the rate of interests charged and extension of due date for filing different tax forms.
Here are all the changes announced by the Centre under the GST law on Sunday, all dated May 1, 2021, in views of providing relief to the taxpayers.
#1. Rate of Interest Reduced
The normal rate of interest incurred on delayed tax payments is 18% per annum. This has been reduced to concessional rates, as mentioned below:
Registered persons having aggregate turnover of over Rs 5 crore
For the first 15 days from the due date of payment of tax, a reduced interest rate of 9% will be charged, which will be increased to 15% thereafter, for the tax payable for the tax period of March and April 2021.
Registered persons having aggregate turnover of upto Rs 5 crore
No rate of interest will be charged for the first 15 days from the due date of payment of tax, 9% ROI for next 15 days, followed by 18% thereafter, for both normal taxpayers and those under Quarterly Return, Monthly Payment of Taxes (QRMP) Scheme for March and April 2021.
Registered persons choosing to pay tax under the Composition scheme
No interest rate for the first 15 days from due date of payment, 9% ROI for the next 15 days, followed by 18% thereafter, for the quarter ending March 31, 2021 and payable in April 2021.
#2. Late Fee Waiver
For registered persons having aggregate turnover of over Rs 5 crore
The late fee has been waived for 15 days with regard to returns in FORM GSTR-3B furnished beyond the due date for tax periods of these two months.
Those with aggregate turnover of upto Rs 5 Crore
Late fee has been waived for 30 days for GSTR-3B returns furnished beyond the due date.
#3. Due Date Filing of Forms Extended
- FORM GSTR-1 and IFF for April is extended by 15 days.
- FORM GSTR-4 for FY 2020-21 has been extended from April 20 to May 31.
- Due date of furnishing FORM ITC-04 for the January to March 2021 quarter has also been extended from 25th April to 31st of this month.
- Availment of ITC has been relaxed.
- The statutory time limits under Section 168A of the CGST Act has been extended.