Govt relaxes timelines for GST compliance, reduces late fee for COVID-19 hit businesses

The finance ministry’s notifications include extension of the deadline for filing GST returns, reduced quantum of late fee, and even late fee waiver in some cases for the months of March and April 2021

The notifications have been issued on the basis of recommendations from the GST Council

Relief to Covid-19 hit in GST

In a bid to provide relief to COVID-19 hit businesses, the finance ministry had on May 1 notified nine changes in the compliance requirements under the Goods and Services Tax (GST) regime. This includes extension of the deadline for filing GST returns, reduced quantum of late fee, and even late fee waiver in some cases for the months of March and April 2021.

The notification says any time limit for completion or compliance of any action under GST rules by any authority or by any person, during the period from April 15 to May 30 shall be extended up to May 31. This includes completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action by any authority, commission, or tribunal.

Late Fee waived off

Thus, businesses with an aggregate turnover of more than Rs 5 crore in the preceding financial year will have their late fee waived off if they fail to submit their returns in the form GSTR-3B within 15 days from the due date for the months of March and April.

For businesses with an aggregate turnover of up to Rs 5 crore, the late fee is waived off for up to 30 days delay during the two months. For taxpayers with an aggregate turnover of up to Rs 5 crore, the 30-day window is applicable for the January-March 2021 period.

GST Return Due Date Extended

The date to furnish the return in Form GSTR-4 of the Central Goods and Services Tax Rules, 2017, for the financial year ending March 31, 2021, has been extended by a month to May 31, 2021.

The government has also extended the time period for furnishing the declaration in Form GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker, during the period from January 1 to March 31 to May 31, 2021.

While the time limit for furnishing the details of outward supplies for the tax period April 2021, in Form GSTR-1has been extended till May 26, the government notification said businesses can file returns in Form GSTR-3B cumulatively for the period April and May, with the cumulative adjustment of the input tax credit. April details will have to be furnished by May 28.

The government has also given more time to officials to carry out their statutory duties by way of action in view of the raging pandemic.