The GST Network has released an advisory on 17th May 2021 for all the taxpayers filing GSTR-3B for April 2021. The due date to file GSTR-1 of April 2021 was extended by the CBIC notification dated 1st May 2021 up to 26th May 2021. Likewise, the taxpayers can file B2B sales invoice details on the Invoice Furnishing Facility (IFF) for April 2021 up to 28th May 2021. Therefore, the GSTR-2B, a static statement auto-drafted with the Input Tax Credit (ITC) details, for April 2021 shall be generated on 29th May 2021.
Monthly filers of GSTR-3B have to file the return by 20th May 2021 for April 2021. Due to the second wave of the COVID-19 pandemic, taxpayers are given a late filing fee and interest relief. Late filing fees have been waived if GSTR-3B is filed within 15 days past the due date. On the other hand, the government has reduced the interest charge from 18% to 9% if tax is paid on or before 4th June 2021, 15 days from the original due date.
The small taxpayers whose quarterly GSTR-3B of January-March 2021 was due in April 2021 to have been given a similar relief. The original due date was 22nd and 24th May 2021, depending on the state or Union Territory in which they are registered. Late filing fees have been waived if GSTR-3B is filed within 30 days past the due date. Moreover, no interest is charged if the return is filed on or before 7th or 9th May 2021, respectively. Whereas 9% interest will be levied for the filing done in the next 15 days.
Therefore, since the relief mentioned above shall be applicable for some more time, the GSTR-2B generation date is extended as well. Here, the large taxpayers who intend to file GSTR-3B before the relaxed dates may find it difficult to obtain any ITC filed information before 29th May 2021. The advisory states that, in such cases, such taxpayers can file GSTR-3B on a self-assessment basis.
All taxpayers claiming eligible ITC in their GSTR-3B for April 2021 need not apply the CGST Rule 36(4). The CBIC had given another relaxation through a notification dated 1st May 2021 to those who intended to claim the provisional ITC, not appearing in the GSTR-2B statement. Such taxpayers filing GSTR-3B of April 2021 may claim any amount of the eligible ITC as per their purchase records without reconciling with GSTR-2B. They need not calculate and claim provisional ITC to the extent of only 5% of the eligible ITC appearing in GSTR-2B until GSTR-3B due for May 2021.
The relaxation provided by the government is commendable and much needed during times of distress and lockdown. While the working capital of many businesses is hurt, lifting the restrictive ITC claims and the deadline extensions have brought a ray of hope for their survival.
For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in
Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.
