Covid-19 Relief Measures for Taxpayers under GST law

CA Harshal Jain | Last updated: 30 October 2021

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In response to the COVID-19 pandemic, the Indian government has introduced several relief measures for Goods and Services Tax (GST) taxpayers. These measures include reduced interest rates on delayed payments, waivers on late fees for filing returns, and extensions for various due dates. The specific relief varies based on taxpayer turnover and the type of return being filed.

In view of the spread of pandemic COVID-19 across many parts of India & challenges faced by Taxpayers, the Government vide Notification Nos. 08/2021- Central Tax, 09/2021- Central Tax, 10/2021- Central Tax, 11/2021- Central Tax, 12/2021- Central Tax, 13/2021- Central Tax, 14/2021- Central Tax, 01/2021 - Integrated Tax & 01/2021 - Union Territory Tax dated 1^st May, 2021has announced various relief measures for taxpayers under Goods and Services Tax Law in form of Reduction in rate of interest, Waiver of Late Fees, Extension of due dates as follows:

GST Relief Measures: COVID-19 Taxpayer Support

Relief Measures	Notification No.	Return/Form Type	Period	Original Due Date	Extended Due Date
Extension of Due Date	12/2021 - Central Tax	Form GSTR - 1	Apr-21	11/05/2021	26/05/2021
	13/2021 - Central Tax	IFF	Apr-21	13/05/2021	28/05/2021
	10/2021 - Central Tax	Form GSTR - 4 (Composition Dealer)	FY 2020-21	30/04/2021	31/05/2021
	11/2021 - Central Tax	Form GST ITC - 04 (Job Work)	FY 2020-21	25/04/2021	31/05/2021
		Form GSTR - 3B		Relief in Interest for Nos. of days
Reduction in rate of Interest for delayed payment	08/2021 - Central Tax 01/2021 - Integrated Tax 01/2021 - Union Territory	Turnover > 5Crs	Mar-21 & Apr-21	@9% for first 15 days from Due Date @18% thereafter
		Turnover upto 5Crs (Monthly Filers)	Mar-21 & Apr-21	@Nil for first 15 days from Due Date; @9% for next 15 days; @18% thereafter
		Turnover upto 5Crs (QRMP Scheme)	Jan To Mar-21 Quarter	@Nil for first 15 days from Due Date; @9% for next 15 days; @18% thereafter
				Waiver of Late Fees for Nos. of days
Late Fees Waiver	09/2021 - Central Tax	Turnover > 5Crs	Mar-21 & Apr-21	15 days from due date of furnishing return
		Turnover upto 5Crs (Monthly Filers)	Mar-21 & Apr-21	30 days from due date of furnishing return
		Turnover upto 5Crs (QRMP Scheme)	Jan To Mar-21 Quarter	30 days from due date of furnishing return
Relaxation ITC availment	13/2021 - Central Tax	Rule 36(4) i.e. 105% Cap on availment of ITC	Apr-21	Rule 36(4) adjustment for Apr-21 & May-21 applicable on Cumulative basis in GTR 3B of May-21
Extension of Time Limits	14/2021 - Central Tax	Completion of Proceeding or passing of order or issuance of notice, intimation, Filing of Appeal, Reply	15th Apr, 21 to 30th May, 21	Extension upto 31^st May, 21
		Rule 9 (Registrations) - CGST, 2017 actions	1st May, 21 to 31st May, 21	Extension upto 15^th June, 21
		GST Refund Order u/s 54(5)	15th Apr, 21 to 30th May, 21	15 days after the receipt of reply or 31^st May, 21 whichever is Later

FAQ :

The main relief measures include reduction in the rate of interest for delayed payments, waiver of late fees for delayed return filings, and extensions of due dates for various GST returns and compliances.

Interest rates are reduced. For taxpayers with turnover over ₹5 Crores, the rate is 9% for the first 15 days and 18% thereafter. For those with turnover up to ₹5 Crores (monthly filers), it's nil for the first 15 days, 9% for the next 15 days, and 18% thereafter. QRMP scheme taxpayers have similar reductions.

Yes, late fees are waived for a certain period after the due date. For turnovers over ₹5 Crores, the waiver is for 15 days. For turnovers up to ₹5 Crores (monthly filers and QRMP scheme), the waiver is for 30 days from the due date.

Extended due dates have been announced for Form GSTR-1, IFF, Form GSTR-4 (for composition dealers), and Form GST ITC-04 (for job work).

The 105% cap on availment of ITC under Rule 36(4) will be adjusted on a cumulative basis for April and May 2021, applicable in the GSTR-3B of May 2021.

Yes, time limits for completion of proceedings, passing of orders, issuing notices, filing appeals, and replies have been extended up to 31st May 2021, and for certain registration-related actions, up to 15th June 2021.

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About the Author

CA Harshal Jain

Founder : H P J & CO, Chartered Accountants

CA Harshal Jain is a member of Institute of Chartered Accountants of India with 8 years standing in the Profession. He has wide experience in the field of Accounting, Audit Assurance, Income Tax, Goods and Services Tax (GST). He had been associated with leading Private Sector Bank for its work related to Operations, T ... Read more

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