This issue of LexCognito, which in Latin means 'awareness about law', seeks to provide you an insight into significant legal and regulatory developments that have taken place very recently in India.
Date: 02 June 2021
Key Highlights of the 43rd GST Council Meeting held on May 28, 2021
The GST Council under the Chairmanship of Union Finance & Corporate Affairs Minister, Smt. Nirmala Sitharaman, met on May 28, 2021, for the 43rd Council meeting after almost a gap of 234 days since the 42nd GST Council meeting held on October 5, 2020 to take decisions relating to changes in GST rates on supply of goods and services and changes related to GST law and procedure.
Recommendations made by the GST Council in its 43rd Meeting:
A. Covid 19 and Black Fungus related relief measures
Exemption of IGST on import of COVID-19 relief goods, for donation to the Government or specified relief agency, even if imported on payment basis, till August 31, 2021.
The relief materials/ goods include medical oxygen, oxygen concentrators and other oxygen storage & transportation equipment, diagnostic markers test kits, vaccines etc. Further, in view of rising Black Fungus cases, the above exemption has been extended to Amphotericin B also.
GST Council constituted a Group of Ministers to submit a report by June 8, 2021 on the need for further relief to COVID-19 related individual items.
B. Changes in GST rates
Sr. No.
Goods/ Services
Existing
Proposed
Diethylcarbamazine (DEC) tablets relating to the Lympahtic Filarisis (an endemic) elimination programme being conducted in collaboration with World Health Organization (WHO)
12%
5%
Maintenance, Repair and Overhaul (MRO) service in respect of ships / vessels Note: Recommendation to provide place of supply for B2B MRO services at location of service recipient
18%
5%
C. Exemptions provided for certain goods and services (clarifications/ clarificatory in nature)
Sr. No.
Goods/ Services
GST applicability / Rates
Repair value of goods re-imported after repairs
IGST leviable only on repair value of goods
Parts of sprinklers / drip irrigation systems falling under tariff heading 8424 (nozzle / laterals) even if these goods are sold separately
GST @ 12% to be levied even if such goods are sold separately
Serving food / mid-day meals to an educational institution (including Anganwadi) sponsored by Government
Exempt irrespective of funding from Government grants or corporate donations
Examination Services Fee in the form of entrance fee charged by National Board of Examination (NBE) or similar Central or State Educational Boards and input services relating thereto
Exempt
Services by way of milling of wheat/paddy into flour/rice provided to Government / local authority for distribution under Public Distribution System
Exempt if the value of goods in composite supply does not exceed 25%
Otherwise, GST @ 5% if supplied to any person registered in GST including a person registered for payment of TDS
Services supplied to a Government Entity by way of construction of a rope-way
18%
Services supplied by Government to Public Sector Undertaking by way of guaranteeing of loans taken by such entity from banks and financial institutions
Exempt
Annuity payments received as deferred payment for construction of road
Annuities which are paid for the service by way of access to a road or a bridge
GST applicable
Exempt
GST charged by developer promoters to land owner promoters in respect of apartments that are subsequently sold by the land owner promoters on which GST is paid
The developer promotor can pay GST relating to such apartments any time before or at the time of issuance of Completion Certificate
Input Tax Credit shall be available to the Land Owner Promoters
D. Relief in GST compliances
1. Extension in due dates (In addition to the relief measures already provided vide the notifications issued on 01.05.2021)
i. Turnover up to INR 5 Crores in preceding financial year
Tax Period
Due Date
Next 15 days
Next 45 days
Thereafter
Mar, 2021/ Jan – Mar, 2021
20.04.2021
05.05.2021
19.06.2021
From 20.06.2021
Interest
Nil
Nil
9%
18%
Late Fee
Nil
Nil
Nil
Fee Applicable
Tax Period
Due Date
Next 15 days
Next 30 days
Thereafter
Apr, 2021
20.05.2021
04.06.2021
04.07.2021
From 05.07.2021
Interest
Nil
Nil
9%
18%
Late Fee
Nil
Nil
Nil
Fee Applicable
Tax Period
Due Date
Next 15 days
Next 15 days
Thereafter
May, 2021
20.06.2021
05.07.2021
20.07.2021
From 21.07.2021
Interest
Nil
Nil
9%
18%
Late Fee
Nil
Nil
Nil
Fee Applicable
ii. Turnover more than INR 5 Crores in preceding financial year
Tax Period
Due Date
Next 15 days
Thereafter
Mar, 2021*
20.04.2021
05.05.2021
20.05.2021
Interest
Nil
9%
18%
Late Fee
Nil
Nil
Fee Applicable
Tax Period
Due Date
Next 15 days
Thereafter
Apr, 2021 **
20.05.2021
04.06.2021
19.06.2021
Interest
Nil
9%
18%
Late Fee
Nil
Nil
Fee Applicable
* ** talking effect of notification no 8/2021 & 9/2021 CT dated 01.05.2021
Tax Period
Due Date
Next 15 days
Thereafter
May, 2021
20.06.2021
05.07.2021
20.07.2021
Interest
Nil
9%
18%
Late Fee
Nil
Nil
Fee Applicable
iii. Due dates for PMT-06 under QRMP scheme (Turnover up to INR 5 Crores in preceding financial year)
Tax Period
Due Date
Next 15 days
Next 45 days
Thereafter
Mar, 2021
25.04.2021
10.05.2021
24.06.2021
From 15.06.2021
Interest
Nil
Nil
9%
18%
Late Fee
Nil
Nil
Nil
Fee Applicable
Tax Period
Due Date
Next 15 days
Next 30 days
Thereafter
Apr, 2021
25.02.2021
09.06.2021
09.07.2021
From 10.07.2021
Interest
Nil
Nil
9%
18%
Late Fee
Nil
Nil
Nil
Fee Applicable
Tax Period
Due Date
Next 15 days
Next 15 days
Thereafter
Apr, 2021
25.06.2021
10.07.2021
25.07.2021
From 26.07.2021
Interest
Nil
Nil
9%
18%
Late Fee
Nil
Nil
Nil
Fee Applicable
iv. Due dates for composition taxpayers in filing quarterly return in Form CMP-08
Tax Period
Due Date
Next 15 days
Next 45 days
Thereafter
Jan, 2021 - Mar, 2021
18.04.2021
03.05.2021
17.06.2021
June 18 onwards
Interest
Nil
Nil
9%
18%
v. Due dates for filing of Form GSTR-1
Tax Period
Due Date
Extended date
Apr, 2021 *
11.05.2021
26.05.2021
May, 2021
11.06.2021
26.06.2021
* after talking effect of notification no 12/2021 dated 01.05.2021
vi. Due dates for filing of IFF (Invoice Furnishing Facility)
Tax Period
Due Date
Extended date
Apr, 2021 *
13.05.2021
28.05.2021
May, 2021
13.06.2021
28.06.2021
* after talking effect of notification no 13/2021 dated 01.05.2021
vii. Relaxation in other due dates
Particulars
Tax Period
Due date
Extended date
Form GSTR-4 (Annual Return for Composition Taxpayers)
FY 2020-21
30.04.2021
31.07.2021
Form ITC-04 (to be filed by Principal / Manufacturer, for goods sent / received / supplied from Job Worker)
Jan-Mar, 2021
25.04.2021
30.06.2021
* without considering the effect of notification no. 10/2021 and 11/2021 dated 01.05.2021 on original due dates
2. 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.
3. Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.
4. Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from April 15, 2021 to June 29, 2021 to be extended up to June 30, 2021 subject to exceptions. It has been clarified that wherever the timelines for actions have been extended by the Hon’ble Supreme Court, the same would apply.
E. Simplification of Annual Return for the FY 2020-21
Amendments made through Finance Act, 2021 to be notified to give effect to the following:
Filing of Annual Return in Forms GSTR-9 / 9A for FY 2020-21 continues to be optional for taxpayers having aggregate annual turnover up to Rs 2 crores
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 crores
To ease the compliance requirements, the Reconciliation Statement in Form GSTR-9C for the FY 2020-21 to be self-certified by the taxpayer, instead of getting it certified by Chartered Accountants.
F. Measures for trade facilitation
1. Amnesty Scheme on Late Fee for non-furnishing of Form GSTR-3B for the tax period from July 2017 to April 2021
Tax liability
Maximum late fee
Condition
Nil
INR 500/- per return
GSTR-3B Returns to be furnished between June 1, 2021 to August 31, 2021
Exists
INR 1,000/- per return
2. Rationalization of Late Fee for prospective tax period
i. For Taxpayers having NIL tax liability in Form GSTR-3B or NIL outward supplies in GSTR-1
Delay in filing forms
Existing maximum late fee
Proposed maximum late fee
GSTR-1
INR 10,000/- per return
INR 500/- per return
GSTR-3B
ii. Other taxpayers
Delay in filing forms
Taxpayers Annual Aggregate Turnover in the preceding year
Existing maximum late fee
Proposed maximum late fee
GSTR-1 and GSTR-3B
Up to INR 1.5 Crores
INR 10,000 per return
INR 2,000/- per return
Between Rs 1.5 crore to Rs 5 crores
INR 5,000/- per return
Above Rs 5 crores
INR 10,000/- per return
iii. For composition taxpayers
Delay in filing forms
Tax liability
Existing maximum late fee
Proposed maximum late fee
GSTR-4
Nil
INR 10,000 per return
INR 500/- per return
Exists
INR 2,000/- per return
iv. For Taxpayers deducting TDS under GST
Delay in filing forms
Existing maximum late fee
Proposed maximum late fee
GSTR-7
INR 100/- per day
INR 50/- per day
INR 10,000/- per return
INR 2,000/- per return
G. Miscellaneous
1. Retrospective amendment w.e.f. July 1, 2017 for levy of interest in case of late payment of tax on net cash liability as against gross tax liability, to be notified.
2. Make the present system of GSTR-1/3B return filing as the default return filing system in GST.
To read the Press Release dated May 28, 2021. Click Here
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Chambers of Rajan & Indraneel is a premier full service law firm headquartered at New Delhi, India. The Firm represents amalgamation of vast experiences and practices of two eminent lawyers. Indranil Ghosh is highly reputed as a disputes lawyer. He was a senior partner and head of litigation practice in one of the oldest Indian law firm Fox Mandal for several decades before setting up his own practice. Rajan D Gupta is a rank holder Chartered Accountant turned Corporate Lawyer. He is also a licensed Insolvency Resolution Professional. He has been associated with internationally renowned big law firms in past and has held senior level positions in firms like PwC, Fox Mandal, Khaitan & Co. and SRGR Law, etc. before starting the Firm.
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