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Indirect Taxation Newsletter – June 2021 – Regulatory News – GST Law – Taxation

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REGULATORY UPDATES

GST ACT

OPINION

  • Notification n ° 16/2021 – MOT, dated 01.06.2021. The CBIC appointed 01.06.2021 on which article 50 of the CGST law of 2017, which imposes the payment of interest on the net debt in cash, will come into force with retroactive effect to 01.07.20217.
  • Notification n ° 17/2021 – CT, dated 01.06.2021. The CBIC has extended the deadline for the submission of GSTR-1 from 11.06.2021 to 26.06.2021 for the month of May 2021.
  • Notification n ° 18/2021 – MOT, dated 01.06.2021. The CBIC has granted taxpayers relief from interest payable on downstream tax payable if it is paid after the due dates for the respective period, as shown below. It will enter into force on 18.05.2021.

* Chhattisgarh, Madhya Pradesh, Gujarat, Daman and Diu, Dadra and Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Pondicherry, Andaman and Nicobar Islands, Telangana and Andhra Pradesh.

** Jammu and Kashmir, Ladakh, Himachal Pradesh, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, and Odisha

  • Notification n ° 19/2021 – CT, dated 01.06.2021. The CBIC has streamlined late fees for taxpayers who delay in providing GSTR-3B, as shown below. It will enter into force on 20.05.2021.

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This is a substantial reduction from the previous cap on the total of Rs. 10,000 / – per return (Rs. 5,000 / – each for CGST and SGST).

Under the amnesty regime, relief provided to taxpayers by reducing the rate of late fees for the pending return.

Currently, Article 47 provides for late fees in which the maximum ceiling for late fees is Rs. 10,000 per declaration (Rs 5,000 / – each for CGST and SGST), this which has been drastically reduced for the benefit of defaulting taxpayers.

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The reduced late fee cap only applies if pending declarations are provided between 01.06.2021 and 31.08.2021.

  • Notification n ° 20/2021 – CT, dated 01.06.2021. The CBIC has reduced / waived late fees for the taxpayer who is late in providing the GSTR-1, as shown below. It will enter into force on 01.06.2021.

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  • Notification n ° 21/2021 – CT, dated 01.06.2021. The CBIC has reduced / waived late fees for taxpayers who are late in providing the GSTR-4, as shown below. It will enter into force on 01.06.2021.

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  • Notification n ° 22/2021 – MOT, dated 01.06.2021. The CBIC capped the maximum late fee at Rs. 2,000 / – per return (Rs. 1,000 each for CGST and SGST) and reduced to Rs. 50 / – per day (Rs. 25 CGST + Rs. 25 SGST) for taxpayers who are late in providing the GSTR-7. It will enter into force on 01.06.2021.
  • Notification n ° 24/2021 – CT, dated 01.06.2021. The CBIC has provided for the relaxation of the compliance deadline (which falls during the period from 04/15.2021 to 06.29.2021 until 06.30.2021) under the GST Act as follows:

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However, such an extension of time will not be applicable for compliance with the following provisions of said law, namely: –

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Provided that when a time limit for the completion of any action by an authority or by any person, specified or prescribed or notified under Rule 9 of the Central Tax Rules on Goods and Services, 2017 falls during the period from 01.05 .2021 to 30.06.2021, and where the completion of such an action has not been carried out within this period, the deadline for the completion of the action is extended until 15.07.2021.

Likewise, in cases where a notice has been issued for the rejection of a request for reimbursement, in whole or in part and where the time limit for issuing an order in accordance with the provisions of subsection (5) , read with subsection (7) of article 54 of this law falls during the period from 15.04.2021 to 29.06.2021, the deadline for the issuance of the said ordinance is extended to fifteen days after receipt of the response to the notice of the registrant or 30.06.2021, whichever is later.

  • Notification n ° 25/2021 – CT, dated 01.06.2021. CBIC has extended the deadline from 04/30/2021 to 07/31/2021 for the provision of GSTR-4 for the 2020-21 fiscal year. It will enter into force on 31.05.2021.
  • Notification n ° 26/2021 – MOT, dated 01.06.2021. CBIC has extended the deadline from 25.04.2021 to 30.06.2021 for the provision of ITC-04 for January-March 2021. The same will come into effect on 31.05.2021.
  • Notification n ° 27/2021 – CT, dated 01.06.2021. In addition to the reliefs mentioned above, the CBIC has provided some additional relief to taxpayers, as illustrated below. It will enter into force on 01.06.2021.
  1. Companies are allowed to file GSTR-3B and GSTR-1 (including IFF) using the Verified Electronic Code (EVC) until 08/31.2021.
  2. Rule 36 (4) of CGST Rule, 2017 limits the use of input tax credit above 5% of the ITC reflected in form GSTR 2A / 2B. However, said restriction will not apply to the individual months of April, May and June 2021, but will apply cumulatively for the period April, May and June 2021 and the return in FORM GSTR-3B for the month of June 2021 is to receive the cumulative input tax credit adjustment for those months.
  3. The registered person can provide details of outgoing supplies using the Invoice Provisioning Facility (IFF) for the month of May 2021 between the period 01.06.2021 to 28.06.2021.

TIPS / INSTRUCTIONS

  • Rule 60 (7) of the CGST 2017 Rules prescribes the generation of the automatically drafted return containing the details of the input tax credit in FORM GSTR-2B for the recipients of the counterparty. In accordance with Rule 60 (8) of the CGST 2017 Rules, FORM GSTR-2B must be made available to recipients after the due date for filing GSTR-1 / IFF by suppliers. Notifications 12/2021-CT and 13/2021-CT, both dated 01.05.2021, extend the due date of GSTR-1 and IFF for April 2021 to 26.05.2021 and 28.05.2021 , respectively.

Therefore, the GSTR-2B for April 2021 will be generated on 29.05.2021, after the deadline for filing the GSTR-1 / IFF. Taxpayers wishing to file FORM GSTR-3B for April 2021 prior to generation of GSTR-2B can do so on a self-assessment basis. Notification No. 13/2021-CT of 01.05.2021 prescribes a cumulative limit under Rule 36 (4) for ITCs claimed during the periods of April and May 2021.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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