Analysis of 43rd GST Council Meeting – in simple words

Posted by CA Pankaj Kumar Vats
On 28 May 2021

COVID 19 Relief
Goods such as medical oxygen, oxygen concentrator, and others, are recommended to have a complete exemption from IGST. And the exemption will be valid till 31st Aug, 2021

Group of Ministers (GoM)
GoM will be constituted for further relief in COVID-19 relief items
Reduction in Rate of GST of medicines.

Amnesty Scheme to provide relief to taxpayers, for pending GST Returns
Amnesty for GSTR-3B for the Period July 2017 to April 2021
Late fee capped maximum Rs. 500/- per return (in case of no tax liability)
Late fee capped maximum Rs. 1,000/- per return (in all other cases)

The reduced late fee will be applicable only if GSTR-3B is filed between 01.06.2021 to 31.08.2021

Further Rationalization of late fee in GST Law (GSTR 3B and 1)
The upper cap of late fee is rationalized on the basis of turnover, as follows:

Turnover/DetailGST ReturnLate Fee Cap
Nil Tax Liability or No Outward Supplies GSTR 3B/GSTR 1500
Turnover up to 1.5 crore GSTR 3B/GSTR 1 2,000
Turnover more than 1.5 crore but less than 5 crore GSTR 3B/GSTR 1 5,000
Turnover above 5 crore GSTR 3B/GSTR 1 10,000
Composition Taxpayer, Nil Tax LiabilityGSTR 4500
Composition Taxpyer, otherGSTR 42,000
Tax deductor in GST GSTR 72,000

Relief in GST Return Due Date and Interest Liability

Tax PeriodTurnoverReturn TypeRelief in due DateReduced Rate of Interest
March and April 2021Turnover up to 5 croreGSTR 3B or PMT 06First 15 days from the due dateNil
March and April 2021 Turnover up to 5 crore GSTR 3B or PMT 06 45 days and 30 days for March and April, respectively9%
March and April 20201Turnover up to 5 croreGSTR 3BLate fee waiver, 60 days for March and 45 days for April, from due date
QE March 2021 Composition Dealer45 days from the due date9%
May 2021 Turnover up to 5 crore GSTR 3B or PMT 06 First 15 days from the due date
Further 15 days
Nil

9%
May 2021Turnover up to 5 croreGSTR 3BLate fee waiver for 30 days from the due date
May 2021Turnover above 5 croreGSTR 3BFirst 15 Days 9%
May 2021Turnover above 5 croreGSTR 3BLate fee waiver, 15 days from the due date
May 2021GSTR 1/IFFLate fee waiver for 15 days from due date
FY 2020-21Composition DealerGSTR 4due date extended to 31st July, 2021
QE Mar 2021ITC-04due date extended to 30th June 2021

Further Updates
Companies can file GST Return by EVC, till 31st Aug 2021
Relaxation in the time limit for various actions extended to 30th June 2021
GSTR 9C: Now taxpayers can self attest GSTR 9C, and it needed to be filed by taxpayers having turnover above 5 crore
GSTR 9: Optional for taxpayers having turnover up to 2 crore

Retrospective Amendment in GST law for interest on net tax liability

Summary: The most welcome amendments are proposed in the GST council meeting, such as GST amnesty scheme, an extension of due dates and reduction and exemption in medical products and medicines related to COVID 19 and fungus.

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