43rd GST Council Meeting dt. 28th May 2021

Today, after a gap of seven months, Finance Minister Smt. Nirmala Sitharaman chaired the 43rd GST Council Meeting via video conferencing.

Let’s take a view of Key Highlights of the said meeting:

  1. Reduction in Compliance burden-

·        Relief measure in return filings:


CATEGORY OF TAXPAYER

FORM

PERIOD

RELAXATION

Small taxpayers (aggregate turnover upto ₹ 5 crore)

GSTR-3B

March-21/  Qtr ending March-21

&

April-21

· Waiver of Late Fees – 60 days from due date for March-21/Qtr ending March-21 returns & 45 days from due date for April-21 return.

·  Relaxation in Interest –

For 15 days from due date – NIL

After 15 days but upto 45 days/ 30 days – 9% p.a.

 

[45 days for March-21 returns (GSTR-3B) /  Qtr ending March-21 returns (CMP-08) & 30 days for April-21]        

Large taxpayers (aggregate turnover more than  ₹ 5 crore)

GSTR-3B

May-21

·    Waiver of Late Fees – 30 days from due date

·    Relaxation in Interest –

For 15 days from due date – NIL

After 15 days but upto 30 days – 9% p.a.

 

·    Amnesty Scheme for 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: 

CATERGORY OF TAXPAYER

MAX LATE FEES

For Taxpayers Having NIL Tax Liability

₹ 500

(₹250 CGST + ₹ 250 SGST)

For other Taxpayers

 ₹ 1000

(₹500 CGST + ₹ 500 SGST)

           (Please note that the reduced rate of late fee would apply if GSTR-3B returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.)

·        Late Fees Rationalisation for Future Tax periods : 

a)  The upper cap of Late fees for filing GSTR-3B is aligned with the turnover of taxpayer as under:

CATERGORY OF TAXPAYER

MAX LATE FEES

For Taxpayers Having NIL Tax Liability in GSTR-3B or having NIL outward supplies in GSTR-1

₹ 500

(₹250 CGST + ₹ 250 SGST)

For other Taxpayers:

 

a.   Annual Aggregate Turnover (AAT) ≤ ₹ 1.5 crores

₹ 2000

(₹1000 CGST + ₹ 1000 SGST)

b.   ₹1.5 crores < Annual Aggregate Turnover (AAT) ≤ ₹ 5 crores

₹ 5000

(₹2500 CGST + ₹ 2500 SGST)

c.      Annual Aggregate Turnover (AAT) > ₹ 5 crores

₹ 10000

(₹5000 CGST + ₹ 5000 SGST)

b)     For GSTR-4, late fees is capped as under:

CATERGORY OF TAXPAYER

MAX LATE FEES

For Taxpayers Having NIL Tax Liability

 

₹ 500

(₹250 CGST + ₹ 250 SGST)

For other Taxpayers

₹ 2000

(₹1000 CGST + ₹ 1000 SGST)

c)      For GSTR-7, late fees is capped at ₹ 50 per day (₹ 25 CGST + Rs ₹ SGST) and to be maximum late fees payable shall be capped to ₹ 2000/- (₹ 1,000 CGST + ₹1,000 SGST) per return.

·   Annual return filing in FORM GSTR-9 for the F.Y. 2020-21 shall be optional for small taxpayers.

·   Reconciliation statement in FORM GSTR-9C filing will be mandatory only for taxpayers having turnover of ₹5 crores or more.

·    Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.

·    Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.

·    Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.

·   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.

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

  1. Import of COVID-related relief items, including AmphotericinB (medicine used in treatment of Black Fungus), to be exempted from IGST till 31st August 2021 even if purchased or meant for donating to government or to any relief agency upon recommendation of State authority.
  2. IGST on free COVID related supplies exempted upto 31st August 2021 (earlier it was exempted upto 30th June 2021 via  Instruction No. 09/2021-Customs dt. 3rd May 2021). 
  3. A Group of Ministers (GoM) will be formed to taken decision on any further reduction in GST rates. They are required to submit report by 8th June 2021 for further rate decisions.
  4. A special session to be taken only on compensation cess matter beyond July 2022.
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