Updates from GST Council: Latest Notifications by CBIC

Notification No. 16/2021 of Central Tax Dated: 01/06/2021
Appointed Effective date for provisions of section 112 of Finance Act, 2021 as 1st June 2021, which amended Subsection (1) Section 50 of Central Goods and Services Act retrospectively. i.e., Interest shall be levied only on the portion of the tax which is paid by debiting the electronic cash ledger.
Notification No. 17/2021 of Central Tax Dated: 01/06/2021
The due date for furnishing outward supplies in GSTR 1 for the period May 2021 extended to 26th June 2021.

Notification No. 18/2021 of Central Tax Dated: 01/06/2021
Reduction of rate of interest for liability to pay tax but fail to do so in 2nd wave of Covid 19 pandemic:

S.No	Class of Tax Payers	Return Period	Interest Relaxation
1	Taxpayer having an aggregate turnover of more than Rs. 5 Cr in preceding financial year	March 2021, April 2021 and May 2021	9% for the first 15 days i.e., 05-05-2021, 04-06-2021 and 05-07-2021 for tax periods March 2021, April 2021 and May 2021 respectively and thereafter 18% pa
2	Taxpayer having an aggregate turnover of up to Rs. 5 Cr (Monthly) in preceding financial year	March 2021	NIL for first 15 days i.e., 05-05-2021, 9% pa for next 45 days i.e., till 19-06-2021 and 18% pa thereafter
		April 2021	NIL for first 15 days i.e., till 04-06-2021, 9% pa for next 30 days i.e., till 04-07-2021 and 18% pa thereafter
		May 2021	NIL for first 15 days i.e., 05-07-2021, 9% for next 15 days i.e., 20-07-2021 and 18% pa thereafter
3	Taxpayer having an aggregate turnover of up to Rs. 5 Cr (QRMP) in preceding financial year	March 2021	NIL for first 15 days i.e., 07-05-2021, 9% pa for next 45 days i.e., till 21-06-2021 and 18% pa thereafter
		April 2021	NIL for first 15 days i.e., till 09-06-2021, 9% pa for next 30 days i.e., till 09-07-2021 and 18% pa thereafter
		May 2021	NIL for first 15 days i.e., 10-07-2021, 9% for next 15 days i.e., 25-07-2021 and 18% pa thereafter
4	Composite Taxpayers	Quarter ending March 2021	NIL for first 15 days i.e., 03-05-2021, 9% for next 45 days i.e., 17-06-2021 and 18% pa thereafter

Notification No. 02/2021-Integrated Tax Dated 01/06/2021 and Notification No. 02/2021-Union Territory Tax Dated 01/06/2021
Seeks to provide relief by lowering of interest rate for late filing of monthly/quarterly returns in Form GSTR-3B or PMT-06 challans as well as for late filing of statement in Form CMP-08 by the composition taxpayers.

Notification No. 19, 20, 21 & 22 /2021 of Central Tax Dated: 01/06/2021
> Waiver of Late Fee as specified in section 47 of CGST Act, 2017 in 2nd wave of Covid 19 pandemic:

S.No	Class of Tax Payer	Period	Period for which late fee waived
1	Tax payer having an aggregate turnover of more than Rs. 5Cr in preceding financial year	March 2021, April 2021 and May 2021	15 days from actual due date i.e., till 05-05-2021, 04-06-2021 and 05-07-2021 for tax periods March 2021, April 2021 and May 2021 respectively
2	Taxpayer having an aggregate turnover of up to Rs. 5Cr in preceding financial year (monthly)	March 2021	60 days from the actual due date i.e., till 19-06-2021
		April 2021	45 days from the actual due date i.e., till 04-07-2021
		May 2021	30 days from the actual due date i.e., till 20-07-2021
3	Taxpayer having an aggregate turnover of up to Rs. 5 Cr (QRMP) in preceding financial year	January 2021 to March 2021	60 days from the actual due date i.e., 21-06-2021

> Further waiver of the late fee specified under section 47 for the returns for the period July 2017 to April 2021:

S.No	Class of Taxpayers	Amount of waiver	The period in which return to be filed
1	A registered person whose tax payable is NIL	In Excess of Rs.250/- each CGST and SGST per return i.e., in excess of Rs.500/-	From 01-06-2021 to 31-08-2021
2	In other cases	In excess of Rs.500/- each CGST and SGST per return i.e., in excess of Rs.1000/-	From 01-06-2021 to 31-08-2021

> Also specified maximum amount of late fee to be levied for below mentioned registered person, if they furnish after the due date of GSTR 1 or GSTR 3B from the tax period June 2021 or quarter ending June 2021:

S.No	Class of taxpayer	Maximum Amount of Late fee
1	A registered person whose tax payable is NIL	Rs.250/- each CGST and SGST per return. I.e., Rs.500/- per return
2	A registered person having an aggregate turnover of up to Rs.1.5 cr in the preceding FY other than Sl no. 1	Rs.1000/- each CGST and SGST per return i.e., Rs.2000/- per return
3	A registered person having an aggregate turnover of more than Rs.1.5 cr to Rs.5 Cr in the preceding FY other than Sl No. 1	Rs.2500/- each CGST and SGST per return i.e., Rs.5000/- per return

Note: No reduction for registered person having an aggregate turnover of more than 5 crs.
> Maximum amount late fee under section 47 of CGST Act, 2017, for the financial year 2021-22 onwards who fails to furnish the return in FORM GSTR-04 by the due date (Composite Scheme):

S.No	Class of taxpayer	Maximum Amount of Late fee
1	A registered person whose tax payable is NIL	Rs.250/- each CGST and SGST per return. I.e., Rs.500/- per return
2	Other cases	Rs.1000/- each CGST and SGST per return i.e., Rs.2000/- per return

> Maximum amount of late fee under section 47 of CGST Act,2017, for the month of June 2021 onwards who fails to furnish the return in FORM GSTR -07 by the due date (TDS Return):

S.No	Class of Taxpayer	Maximum amount of Late fee
1	A registered person who fails to furnish GSTR 07	Rs.1000/- each CGST and SGST per return i.e., Rs.2000/- per return

Notification No. 23/2021 of Central Tax Dated: 01/06/2021
The government department and local authority are excluded from E-Invoicing provisions along with the following
a. an insurer or a banking company or a financial institution including non-banking financial institution.
b. Goods Transport Agency (GTA)
c. Passenger transporter
d. A registered person supplying services by way of admission to an exhibition of cinematograph films on multiplex screens
Notification No. 24/2021 of Central tax Dated: 01/06/2021
a. where, any time limit for completion or compliance of any action, by any authority or by any person, falls during the period from 15th April 2021 to the 29th June 2021, if it had not completed in that period, the time limit extended to 30th June 2021. Except for Registration procedure, provisions relating casual taxpayer and non-resident taxpayer, Invoicing, furnishing of outward supply, Late fee, Interest, power to arrest, Partner’s liability to discharge tax, Penalty, detention and seizer of goods and conveyances in transit, GSTR 3B, inspection of goods and rules made thereunder.
b. where, any time limit for completion of any action, by any authority or by any person, falls during the period from 1st May 2021 to 30th June 2021, if it had not completed in that period, the time limit for completion action extended to 15th July 2021.
c. The time limit for issuance of order of rejection of refund claim falls during the period from 15th April 2021 to 29th June 2021, said time limit for issuance of order extended to 30th June 2021.
Notification No. 25/2021 of Central tax Dated: 01/06/2021
The due date for furnishing Form GSTR 4 (Yearly return for Composition scheme) further extended to on or before 31st July 2021.
Notification No 26/2021 of Central tax Dated: 01/06/2021
Due date for furnishing declaration in Form ITC 04, in respect of goods dispatched to job worker or received from a job worker, during the period from 1st January 2021 to 31st March 2021 extended to 30th June 2021.
Notification No 27/2021 of Central Tax Dated: 01/06/2021
> Authentication through the EVC by companies and LLPs extended to 31st August 2021.
> Relaxation of Rule 36(4) given to the period April 2021 and May 2021 and this rule has to be applied cumulatively for the tax period April 2021, May 2021 and June 2021 in Form GSTR 3B of the month or quarter ending 30th June 2021.
> Time limit for furnishing outward supplies of B2B transactions for the period May 2021 through IFF extended to 28th June 2021 to 13th June 2021.

About the Author

Keval Sheth

Functional Consultant (Indirect Taxation) A Solution Expert in GST Domain, he worked as a Service Delivery Manager with remarkable achievement in managing a team and successfully delivering the GST E-filing and Compliance services to most of the leading clients. He brings along 18+ years of experience of Accounting, Taxation, Finance, Auditing and Risk management, Fraud Investigation, Detection and Control. He has expertise in Foreign Exchange Operations and AML / KYC compliance