New Structure of GST Return Late Fees: GST Council Meeting Proposals

New Structure of GST Return Late Fees: GST Council Meeting Proposals This Article has deeply analysed all the Proposals of 43rd GST Council Meeting like GST Amnesty Scheme, New Structure of GST Late Fees, Interest and Late fee waiver for March, April, May 2021 Monthly GSTR 3B filling, GSTR-4, GSTR-1 & CMP-8 Due Date Extension etc.

Amnesty Scheme to provide relief to taxpayers regarding late fee for pending returns:

OLD GSTR 3B: July 2017 to April 2021

Taxpayers	*Maximum late fee	CGST	SGST
Nil Tax Liablity	500	250	250
Other tax payers	1000	500	500

Rationalization of late fee imposed under section 47 of the CGST Act:

New GSTR 3B and GSTR 1* 

Taxpayers	Maximum late fee	CGST	SGST
Nil Tax Liability in GSTR 3B or Nil outward supply in GSTR 1	500	250	250
Other taxpayers	Maximum late fee	CGST	SGST
AATO >=1.5Cr in PY	2000	1000	1000
AATO 1.5 cr to 5 Cr in PY	5000	2500	2500
AATO >5Cr in PY	10000	5000	5000

*Separate late fee for GSTR 3B & GSTR 1- Above limits are not combined

GSTR 4

Taxpayers	Maximum late fee	CGST	SGST
NIL	500	250	250
OTHER	2000	1000	1000

GSTR 7

Taxpayers	Maximum late fee	CGST	SGST
PER DAY	50	25	25
Maximum	2000	1000	1000

Interest and Late fee waiver for March, April, May 2021: Monthly GSTR 3B filling

Tax Period: March 2021

Tax Period	Class of taxpayer (Based on AATO)	Due date of filing	Reduced Rate of Interest			Waiver of late fee till
			First 15 days from due date	Next 45 days	From 61st day onwards
March, 2021	> Rs. 5 Cr.	20th April	9%	18%	18%	5th May 2021
	Up to Rs. 5 Cr	20th April	Nil	9%	18%	19th June 2021

Tax Period: April 2021

Tax Period	Class of taxpayer (Based on AATO)	Due date of filing	Reduced Rate of Interest			Waiver of late fee till
			First 15 days from due date	Next 30 days	From 46st day onwards
April, 2021	> Rs. 5 Cr.	20th May	9%	18%	18%	4th June, 2021
	Up to Rs. 5 Cr	20th May	Nil	9%	18%	4th July 2021

Tax Period: May 2021

Tax Period	Class of taxpayer (Based on AATO)	Due date of filing	Reduced Rate of Interest			Waiver of late fee till
			First 15 days from due date	Next 30 days	From 46st day onwards
May, 2021	> Rs. 5 Cr.	20th June	9%	18%	18%	4th July,2021
	Up to Rs. 5 Cr	20th June	Nil	9%	18%	20th July,2021

QRMP PMT 06-Interest and Late fee waiver for March, April, May 2021

Tax Period: March 2021

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 45 days	From 61st day onwards
March, 2021	20th April	Nil	9%	18%

Tax Period: April 2021

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 30 Days	From 46st day onwards
April-21	25th May	Nil	9%	18%

Tax Period: May 2021

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 15 Days	From 31st day onwards
May-21	26th June	Nil	9%	18%

QRMP GSTR 3B Late fee wavier

Quarter	Due Date	Waiver of late fee till
Jan - March 2021	20th April	19th June 2021

Composition Interest wavier

Tax Period	Due date	Reduced Rate of Interest
		First 15 days from due date	Next 45 days	From 61st day onwards
Jan - March 2021	18th April	Nil	9%	18%

Composition GSTR 4

Tax period	Due Date	New Due date
FY 2020-21	30th April 2021	30th July 2021

Composition GSTR 4- Late fee waiver

Tax liability	Maximum late fee	CGST	SGST
NIL	500	250	250
OTHER	2000	1000	1000

Various Due date extension

Returns	Month	Year	QTR	New Due date
GSTR 1	May-21			26th June,21
GSTR 4		FY 20-21		31st July,21
ITC 04			Jan-March 21	30th June,21

Other benefits

Rule 36(4) of CGST Rules

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

Use of EVC By companies

Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.

Section 168A of CGST Act

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. [Wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply]

Simplification of Annual Return for Financial Year 2020-21:

Return	Period	Optional for AATO UPTO	Self- Certified
GSTR 9/9A	FY 2020-21	2 CR	YES
GSTR 9C	FY 2020-21	5 CR	YES

Section 50 of CGST Act

Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on a net cash basis, to be notified at the earliest. Youtube link: https://www.youtube.com/c/CARAHULGOYAL The contents of this draft are for information purposes only and do not constitute any advice or a legal opinion and are personal views of the creator. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above video. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the creator is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors, or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.