In the midst of the second wave of the COVID-19 pandemic, the government has extended Goods and Services Tax (GST) due dates or waived interest and late fees of returns due towards the end of April in the first few weeks of May 2021. The second wave of the coronavirus outbreak has created a massive medical crisis in the country. The Central Tax notifications released on 1st May 2021 will provide much-needed relief to businesses struggling to keep up with tax compliances.
The GSTR-3B return due date has not been extended. However, relief has been granted in the form of an interest waiver for March and April 2021. For taxpayers with turnover above Rs.5 crore in the previous financial year, the interest rate of 18% has been slashed to 9% for filing delays up to a period of 15 days from the due date, after which the 18% rate will apply. Late fees have also been waived if returns are filed within 15 days post the due date.
There will be no interest applicable for taxpayers with turnover up to Rs.5 crore in the previous financial year for the first 15 days after the due date. After which, an interest rate of 9% will be applicable for the next 15 days and 18% thereafter. This also applies to quarterly GSTR-3B filers who file their January to March GSTR-3B return in April 2021. In both cases, late fees applicable will be waived for any filing delays up to 30 days post the return-filing due date.
Provisional input tax credit (ITC) restricted up to 5% of the ITC available in the GSTR-2A/2B statement can be adjusted cumulatively for April and May 2021 while filing the GSTR-3B for May 2021.
Composition taxpayers who had to pay taxes and furnish their quarterly statement in Form CMP-08 by 18th March 2021 have been granted an interest waiver for the first 15 days post the due date. Thereafter, interest will be applicable at a reduced rate of 9% for the next 15 days and then the regular rate of 18% after that. Further, the due date for the annual return in Form GSTR-4 for the financial year ending 31st March 2021 has been extended until 31st May 2021.
Persons supplying to or receiving inputs and capital goods from a job worker must furnish a quarterly statement in Form ITC-04. The government has extended the due date to submit Form ITC-04 until 31st May 2021 for the return due for the quarter January to March 2021.
The GSTR-1 due date for April has also been extended to the 26th of the succeeding month, i.e., the 26th of May. For quarterly filers using the Invoice Furnishing Facility (IFF), the deadline to upload invoices has been extended until 28th May 2021.
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