Relief Measures declared by CBIC and CBDT in Indirect Tax and Direct Tax

Aruhi | Last updated: 07 May 2021

Save Share

Quick Summary

In response to the COVID-19 pandemic, both the CBDT and CBIC have announced significant relief measures for taxpayers. These include extensions for various direct tax compliances, such as filing income tax returns and appeals, with new deadlines often set for 31st May 2021. For indirect taxes, late fees for GSTR-3B filings have been waived for specific periods and taxpayer categories, and due dates for GSTR-1, IFF, GSTR-4, and ITC-04 have been extended. Additionally, interest rates for delayed GST payments have been reduced, and certain restrictions on availing input tax credit have been temporarily eased.

Due to the COVID-19 pandemic situation in India, CBDT, as well as CBIC, have provided various relaxations in Direct Tax and Indirect Tax. Let us discuss the same. Direct Tax CBDT has extended the deadline for various Income Tax Compliances due to COVID-19 Pandemic vide Circular No. 08 /2021 da

Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Broadcasts
Daily E-Newsletter
Unlimited Articles Access

BEST VALUE

2 YEAR PLAN

3,499

(Inclusive of GST)

1 YEAR PLAN

1,999

(Inclusive of GST)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

FAQ :

CBIC and CBDT have announced relaxations in both indirect and direct tax compliances due to the COVID-19 pandemic. This includes extended deadlines for various tax filings and payments, waiver of late fees, and reduced interest rates on delayed GST payments.

The CBDT has extended deadlines for appeals to the Commissioner (Appeals), objections to the Dispute Resolution Panel (DRP), filing income tax returns in response to a Section 148 notice, filing belated and revised returns for AY 2020-21, payment of tax under Sections 194-IA, 194-IB, and 194M, and filing of Statement in Form No. 61.

CBIC has waived late fees for GSTR-3B filings for March and April 2021 for certain taxpayers, extended due dates for GSTR-1, IFF, GSTR-4, and ITC-04, reduced interest rates for delayed GST payments, and eased restrictions on availing input tax credit for April and May 2021.

Late fees for GSTR-3B filings for March and April 2021 have been waived for 15 days for regular taxpayers with turnover over Rs. 5 Cr, and for 30 days for regular taxpayers with turnover up to Rs. 5 Cr (monthly and quarterly schemes).

Yes, the interest rate for delayed GST payments has been reduced. For regular taxpayers with turnover over Rs. 5 Cr, the rate is 9% for the first 15 days and 18% thereafter. For taxpayers with turnover up to Rs. 5 Cr, the interest is NIL for the first 15 days, 9% for the next 15 days, and 18% thereafter. Composition taxpayers also have reduced interest rates for the first 15 and next 15 days.

The time limit for most compliance actions, including filing appeals, replies, applications, or furnishing documents and returns, falling between 15th April 2021 and 30th May 2021, has been extended to 31st May 2021.

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!