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29 May 2021

KEY DECISIONS-43rd GST COUNCIL MEETING 28TH MAY 2021

On Friday, 28th May 2021, GST Council met after 7 months since last meeting held on October 2020, to hold 43rd GST Council meeting through video conferencing at New Delhi chaired by our Hon’ble Union Finance Minister “Mrs. Niramala Sitaraman” accompanied by minister for state for finance (MOS) Mr. Anurag Thakur, finance minister of states & UTs and senior officers to discuss the reliefs to be provided to the taxpayers amid covid-19 including the rate cuts on covid related items.

Highlights of the meeting:

  • COVID-19 related relief measures for taxpayers :
 
  • For Small taxpayers (Aggregate Turnover upto Rs. 5 crore)
Tax period Interest Reliefs GSTR-3B late fee Reliefs
March NIL for first 15 days from the due date of furnishing FORM GSTR-3B or filing of PMT-06 Challan& reduced rate of 9% thereafter for further 45 days. Waived for 60 days for March from due date of furnishing GSTR-3B
April NIL for first 15 days from the due date of furnishing FORM GSTR-3B or filing of PMT-06 Challan& reduced rate of 9% thereafter for further 30 days. Waived for 45 days for April from due date of furnishing GSTR-3B
May NIL for first 15 days from the due date of furnishing FORM GSTR-3B or filing of PMT-06 Challan & reduced rate of 9% thereafter for further 15 days Waived for 30 days from due date of furnishing GSTR-3B
   
  • For Large taxpayers (Aggregate Turnover more than Rs. 5 crore)
Particulars Tax periods                                     Reliefs
Interest Rates May Lower ROI of 9%  for first 15 days after the due date of furnishing GSTR-3B
Late Fees May Waived for 15 days from due date of furnishing GSTR-3B
 
  • Due dates extended
  • GSTR-1/ IFF for the month of May 2021 by 15 days
  • GSTR-4 for FY 2020-21 to 31.07.2021
  • 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 EVC, instead of DSC till 31.08.2021.
 
  • Relaxations under section 168A of the CGST Act by extending the time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 29th June, 2021, upto 30th June, 2021, subject to some exceptions.
   
  • Simplification of Annual Return for Financial Year 2020-21:
    1. Amendments in section 35 and 44 of CGST Act made through Finance Act, 2021 to be notified enabling the taxpayers to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. This change will apply for Annual Return for FY 2020-21.
    2. The filing of annual return in FORM GSTR-9 / 9A for FY 2020-21 to be optional for taxpayers having aggregate annual turnover upto Rs 2 Crore;
  • The reconciliation statement in FORM GSTR-9C for the FY 2020-21 will be required to be filed by taxpayers with annual aggregate turnover above Rs 5 Crore.
   
  • Amnesty Scheme to provide relief to taxpayers i.r.o. late fee for pending GSTR-3B for tax periods July-17 to April 21, (if furnished between 01.06.2021 to 31.08.2021)-
 
  • Nil tax liability- Max late fees - Rs 500/- per return (Rs 250 CGST & SGST each)
  • Others: Max late fees - Rs 1000/- per return (Rs500 CGST & SGST each)
   
  • Rationalization of late fee imposed u/s 47 of the CGST Act: for prospective tax periods
Particulars Late fees capping (INR)
Taxpayers having NIL tax liability in GSTR-3B or NIL outward supplies in GSTR-1 500/return(250/-CGST&SGST each)
Others : Having Annual Aggregate Turnover (AATO) in preceding FY-
UPTO 1.5 crores 2,000/return (1,000/-CGST & SGST each)
1.5-5 crores 5,000/return (2,500/-CGST & SGST each)
More than 5 crores 10,000/return (5,000/-CGST & SGST each)
Delay in filing GSTR-4, If tax liability-NIL 500/return (250/-CGST & SGST each)
                                                               Others                       2,000/return (1,000/- CGST & SGST each)
Delay in filing GSTR-7, If tax liability -NIL 50/return (25/-CGST & SGST each)
                                                                 Others 2,000/return (1,000/- CGST & SGST each)
     
  • IGST exempted on import (either by FOC or on payment basis) of Covid relief items till 31.08.2021 for donating or free distribution to government or to any relief agency -
 

Such as medical oxygen, oxygen concentrators, other oxygen storage & transport equipment,

certain diagnostic markers test kits, covid & black fungus vaccines etc.

 
  • GST rate on Diethylcarbamazine (DEC) tablets recommended for reduction to 5% (from 12%)
 
  • As regards individual items, it was decided to constitute a Group of Ministers (GoM) to go into the need for further relief to COVID-19 related individual items immediately. The GOM shall give its report by 08.06.2021.
 

Certain clarifications issued i.r.o. some services, Retrospective amendment in section 50 of the CGST Act with effect from 01.07.2017, providing for payment of interest on net cash basis, to be notified at the earliest.