Relaxations on Account of COVID-19 & Other Measures

EXEMPTION ON IMPORT OF COVID -19 RELIEF MATERIALS

• IGST exemption has been recommended where notified[1] Covid relief items are imported ‘on payment basis’ for donating to the Govt. or on the recommendation of State authority to any relief agency.
• All exemptions including the newly proposed exemption would be available up to 31.08.2020

Watch our video presentation on exemptions notified on import of Covid Relief items:

https://www.youtube.com/watch?v=K-qdcT-Ei8E&t=65s

• In view of Black fungus cases, the above exemptions would also be extended on the import of ‘Amphotericin B’
• Group of Ministers has been constituted[2] to see individual items on which relaxations need to be provided

COMPLIANCES: DUE DATES, TAX PAYMENT, LATE FEE, AND INTEREST

1. FORM GSTR -3B

2. FORM CMP-08

3. FORM GSTR-1/ IFF Facility

4. FORM GSTR-1/ IFF Facility

Other Measures

Relaxation of Rule 36(4) of the CGST Rules, 2017

• It has been proposed that in respect of the period of April, May, and June 2021, the condition of availing ITC imposed by Rule 36(4)[7]of the CGST Rules, 2017 would apply cumulatively in June 2021

Extension of the time limit under section 168A of the CGST Act

• Extension in the time limit has been recommended for the completion of any action to be made by any authority or person up to June 30, 2021, which falls due during the period from April 15, 2021, to June 29, 2021. However, it is clarified that in few cases, the time limits extended[8] by the Hon’ble Supreme Court shall apply

Filing of returns through EVC

• The filing of GST returns by the Companies using the Electronic Verification Code (EVC) facility has been recommended to extend till August 31, 2021.

Simplification of the filing of the Annual return

• The Council has decided to simplify compliance of Annual Return for Financial Year 2020-21. The taxpayers would be able to self-certify the reconciliation statement in FORM GSTR-9C instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21. The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover up to Rs 2 Crore. The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with an annual aggregate turnover above Rs 5 Crore.

Retrospective Amendment for payment of interest

• The recommendation has been made to notify the retrospective amendment in Section 50 of the CGST Act with effect from July 01, 2017, so that the interest on the delay in payment of tax could be imposed only on the amount of tax which is required to be paid by the taxpayer on a cash basis.

GSTR 3B and GSTR 1 would be default Returns filing system

• The recommendation has been made to make amendments in the provisions of the CGST Act so as to make the current system of GSTR-1or GSTR-3B return filing the default return filing system.

Introduction of the Amnesty Scheme for the period from July 2017 to April 2021

• To provide relief to taxpayers regarding late fees for pending returns, it has been proposed to introduce an amnesty scheme. The Late fee for non-furnishing of the Form GSTR-3B for the period from July 2017 to April 2021 by the taxpayers has been capped in the below manner, provided that the form is filed during the period 01.06.2021 to 31.08.2021:

Rationalization of Late Fees for prospective tax periods

• It has been proposed that the late fees for delay in furnishing of the returns by the taxpayers would be rationalized. Now, the late fees would be capped for the prospective tax periods in accordance with the turnover or tax liability of the taxpayer in the following manner

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[1]Ad hoc Exemption Order No. 4/2021-Customs dated May 03, 2021

[2] F.No. S-31011/12/2021-DIR(NC)-DOR Dated May 29, 2021

[3]The registered person under the QRMP Scheme would be required to pay the tax due in each of the first two months of the quarter by depositing the due amount in Form GST PMT-06. The amount shall be deposited by the 25th day of next month.

[4]Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep

[5]Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi

[6] Notification No. 8/2021- Central Tax, Dated 1st May, 2021 read with Notification No. 13/2017 – Central Tax, Dated 28th June, 2017

[7]Rule 36(4) of the CGST Rules, 2017 provides that ITC claim in respect of invoices which are not uploaded by vendors in their Form GSTR 1 or through Invoice Furnishing Facility (‘IFF’) will be allowed maximum up to 5% of the invoices furnished by the vendors in their Form GSTR 1/ through IFF Facility.

[8]The Hon’ble Supreme Court has already extended vide order dated April 27, 2021 the period of limitation till further orders for the actions to be taken in the judicial or quasi-judicial proceedings by the litigants, whether the limitation period is prescribed under a general or special law