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

Aruhi
Updated on 07 May 2021

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 dated - 30th April, 2021.

Topic	Previous Due Date	Date Extended
Appeal to Commissioner (Appeals) under Chapter XX of the Act	1st April, 2021 or thereafter	within the time provided under that Section or by 31st May, 2021, whichever is later;
Objections to Dispute Resolution Panel (DRP) under Section 144C of the Act	1st April, 2021 or thereafter	within the time provided under that Section or by 31st May, 2021, whichever is later;
Income Tax return in response to notice under Section 148 of the Act,	1st April, 2021 or thereafter	within the time allowed under that notice or by 31st May, 2021, whichever is later;
Filing of belated return under sub- section (4) and revised return under sub-section (5) of Section 139 of the Act, for Assessment Year 2020-21	on or before 31st March, 2021	on or before 31st May, 2021
Payment of tax deducted under Section 194-IA, Section 194-IB and Section 194M of the Act, and filing of challan-cum-statement for such tax deducted	which are required to be paid and furnished by 30th April, 2021(respectively)	may be paid and furnished on or before 31st May, 2021
Statement in Form No. 61, containing particulars of declarations received in Form No.60	on or before 30th April, 2021,	on or before 31st May, 2021

Indirect Tax

1. Late Fees has been waived off for delay in filing of GSTR 3B for the month of March & April 2021 vide Notification No. 9/2021-CT dated 1st May 2021

Type of taxpayer	Tax Period	Turnover Limit	late fees waived off
Regular taxpayer	March & April 2021	Turnover more than Rs. 5 Cr in preceding financial year	Late fees waived for 15 days
Regular taxpayer- Monthly Scheme	March & April 2021	Turnover upto Rs. 5 Cr in preceding financial year	Late fees waived for 30 days
Regular taxpayer- Quarterly Scheme (QRMP)	January-March 2021	Turnover upto Rs. 5 Cr in preceding financial year	Late fees waived for 30 days

2. The due date for filing GSTR-1 for the month of April 2021 has been extended till 26th May 2021 vide Notification 12/2021-CT dated 01.05.2021

3. The due date for filing IFF for the month of April 2021 has been extended till 28th May 2021 vide Notification 13/2021-CT dated 01.05.2021

4. The due date for furnishing return GSTR 4(Annual Return)by taxpayers under composite scheme for the FY 2020- 21 has been extended till the 31st May, 2021 vide Notification No. 10/2021-CT dated 1st May

5. The due date for furnishing the declaration in Form ITC-04 for the quarter Jan’21-Mar’21 in respect of goods dispatched to a job worker or received from a job worker has been extended till 31st May, 2021 vide Notification 11/2021-CT dated 1st May 2021.

6. Interest Rate for delayed payment of GST has been reduced for different classes of taxpayers as described below:

Category of taxpayer	Tax Period	Turnover Limit	Applicable Interest Rates (After reduction)
Regular taxpayer	March & April 2021	Turnover more than 5 Cr in preceding financial year	For first 15 days- 9% Thereafter- 18%
Regular taxpayer- Monthly Scheme	March & April 2021	Turnover upto 5 Cr in preceding financial year	For first 15 days- NIL For next 15 days- 9% Thereafter- 18%
Regular taxpayer- Quarterly Scheme (QRMP)	March & April 2021	Turnover upto 5 Cr in preceding financial year	For first 15 days- NIL For next 15 days- 9% Thereafter- 18%
Composition taxpayer	January-March’21 Quarter	–	For first 15 days- NIL For next 15 days- 9% Thereafter- 18%

7. According to Rule 36(4) ITC can be availed upto maximum 5% of the ITC reflected in Form GSTR 2A/2B.

However the above restriction will not apply in the month of April & May 2021, but will apply cumulatively for the period April & May, 2021 and the return in FORM GSTR-3B for the month of May, 2021 is to be furnished with the cumulative adjustment of input tax credit for those months vide Notification No. 13/2021-CT dated 1st May 2021

8. The due date for furnishing statement of TDS deducted/ TCS Collected for the month of April, 2021 in GSTR-7/ Form GSTR-8 hs been extended till 31st May, 2021 vide Notification No. 14/2021-CT dated 1st May

9. The due date of filing return by Input Service Distributor/ non-resident taxable person for the month of April, 2021 in Form GSTR-6/ Form GSTR-5 has been extended till 31st May, 2021 vide Notification No. 14/2021-CT dated 1st May 2021

10. CBIC has declared relaxation in time limit for various compliance falling during the period from 15th April 2021 to 30th May 2021 and the date for compliance has been extended till 31st May 2021 vide Notification 14/2021-CT dated 1st May 2021

Time limit for completion or compliance of any action, by any authority or by any person, falling during the period from the 15th April, 2021 to the 30th May, 2021 has been extended till 31st May,
The time limit for completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called by any authority, commission or tribunal, falling during the period from the 15th April, 2021 to the 30th May, 2021 has been extended till 31st May,
The time limit for filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, falling during the period from the 15th April, 2021 to the 30th May, 2021 has been extended till 31st May,
The time limit for verification of application for fresh GST registration and approval/ grant of GST registration under rule 9 of CGST Rules, falling during the period from the 1st May, 2021 to the 31st May, 2021 has been extended till 15th June,
Where a notice has been issued for rejection of refund claim and where the time limit for issuance of order u/s 54(5) read with sec 54(7) falls during the period from 15th April, 2021 to the 30th May, 2021, in such cases the time limit for issuance of the said order has been extended till 15 days after the receipt of reply to the notice from the registered person or the 31st day of May, 2021, whichever is