The government has waived late fee for delayed filing of monthly return GSTR-3B and tax payment for the months of March and April and also reduced interest rate for late filers. The Finance Ministry in a statement said it has provided several relief measures in view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances under the Goods & Services Tax (GST) law due to the outbreak of the second wave of COVID-19 pandemic.
Taxpayers with a turnover of over Rs 5 crore have been given 15 days extra time to file monthly summary return GSTR-3B and pay taxes without paying any late fees. They would be required to pay a lower 9 percent for these 15 days, after which the rate would be 18 percent. Businesses with turnover of up to Rs 5 crore in the preceding financial year, have 30 days more time from their original due date for filing 3B returns for March and April, with late fee waiver. The interest rate would be ’Nil’ for the first 15 days, post which it would be a concessional 9 percent rate. After 30 days, the normal 18 percent interest would be levied.
The Central Board of Indirect Taxes and Customs (CBIC) on May 1 issued the notification, saying that these relaxations come into effect from April 18. Also, the due date for filing April sales return GSTR-1 has been extended till May 26, from the original due date of May 11. For composition dealers filing sales return GSTR-4, the deadline for filing returns for the financial year ended March 31, 2021, has been extended by a month till May 31.
AMRG & Associates Senior Partner Rajat Mohan said owing to Covid induced exigencies, the government has introduced compliance-related reliefs for the block of two-month March and April 2021. Every taxpayer of the country is eligible for some form of extension irrespective of the size of operations. ”Large taxpayers will enjoy a full waiver of late fee, and partial relief in levy of interest wherein GSTR -3B filings are delayed up to 15 days. However, small taxpayers will enjoy similar benefits even if such filings are delayed up to 30 days,” Mohan added.
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While businesses file GSTR-1 of a particular month by the 11th day of the subsequent month, GSTR-3B is filed in a staggered manner between the 20th-24th day of the succeeding month. EY Tax Partner Abhishek Jain, said, ”With the unprecedented surge in Covid-19 pandemic and lockdown in several parts of the country, many industry players would have struggled to meet the GST compliance deadlines. The extension in the deadlines would provide much-needed relief to the industry.
