Relief Measures – GST Law

Finally, CBIC also comes up with certain reliefs relating to statutory and regulatory compliance matters under various provisions of GST Law due to the Lockdown situation at multiple locations of the Country. A brief analysis of the Notifications 08/2021 to 14/2021 dated 01.05.2021 are summarized hereunder:

1. GSTR-3B – No Extension in Due dates.

a. Relaxation in Interest Rate.

b. Late Fees waived if return filed within a specified period.

2. Extension of Dates of GSTR-1 and other returns/Forms

3. Restriction of Input Tax Credit under rule 36(4) for April and May 2021

The restriction to claim ITC i.e. maximum 105% of ITC reflected in GSTR- 2A/2B, shall apply cumulatively for the months of April and May 2021, and accordingly, the return in FORM GSTR-3B for the tax period of May 2021 shall be furnished with cumulative adjustment of ITC for the said months in accordance with the condition under rule 36(4).

4. Extension of time limit for certain other compliances:

4. Extension of time limit for certain compliances

i. Where any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under CGST, IGST, and UTGST Act, which falls during the period from the 15th day of April 2021 to the 30th day of May 2021 and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall be extended up to the 31st day of May 2021, including for the purposes of.

a. The above extension is inclusive of completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction, or approval or such other action, by whatever name called, by any authority, commission or tribunal; or

b. filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the CGST, IGST, UTGST Acts.

ii. The above extension, however, shall not apply for compliance with the following provisions. Chapter IV – pertains to the time and value of supply

b. Section 10(3) – Lapse of composition scheme if aggregate turnover exceeds the limit

Section 25 – Procedure for Registration

Section 27 – Special provisions relating to Casual Taxable Person and Non-Resident Taxable Person

Section 31 – Issue of Invoice

Section 37 – Furnishing details of outward supplies (GSTR-1)

Section 47 – Levy of Late Fee

Section 50 – Interest on delayed payment of tax

Section 69 – Power to arrest

Section 90 – Liability of partners of firm to pay tax

Section 122 – Penalty for certain offenses

Section 129 – Detention, seizure, and release of goods and conveyances in transit

c. Section 39 – Furnishing of returns, except returns under:

i. S. 39(3) – Return for Tax Deducted at Source u/s 51

ii. S. 39 (4) – Return for Input Service Distributor

iii. S. 39 (5) – Non-Resident Taxable Person

d. Section 68 in so far as e-way bill is concerned – Inspection of goods in movement

e. Rules made under the provisions specified at clause (a) to (d) above

iii. Rule 9 provides a complete procedure for verification of registration application and approval. Any action to be taken by the department or applicant during the period from the 1st day of May 2021 to the 31st day of May 2021 shall be extended up to the 15th day of June 2021. [Food for thought: For instance, Delhi GST department is working from home since 17th April – What will be the position of registration application for which action to be taken by the department from 17th April to 30th April.]

iv. in cases where a notice has been issued for rejection of refund claim (in full or in part) and where the time limit for issuance of refund sanction/rejection order in RFD-06 falls during the period from the 15th day of April 2021 to the 30th day of May 2021, in such cases the time limit for issuance of the said order shall be extended to fifteen days after the receipt of the reply to the notice from the registered person or the 31st day of May 2021, whichever is later.