Relaxation in GST provisions due to COVID-19
GST Notification no. 17/2021 to 19/2021 and part of Notification no. 27/2021 have already been covered under article “UPDATED EXTENDED DATES OF GSTR-1, IFF, GSTR-3B, PMT-06” and Notification no. 19/2021 to 22/2021 under article “Late Fee- Any need of Amnesty Scheme in prospective Tax Period? “ .
In this article attempt has been taken to explain Notification no. 23/2021 to Notification no.26/2021 and the remaining part of Notification no. 27/2021 in very simple easy to understandable language and you will get replies to below said queries:
- Which entitles are exempt from the obligation of raising e-invoice?
- Which dates have been extended due to force majeure?
- What is the due date of GSTR-4 for FY 2020-21?
- What is the due date of ITC-04 for the 4thquarter of 2020-21?
- How taxpayer will comply with Rule 36(4) as dates for GST returns has been extended?
- How to file GST return without DSC in case of company due to lockdown?
1. Notification No.23/2021:- For which entities/sectors, e-invoicing is not applicable/exempt?
As per Notification no. 13/2020 dated 21.03.2020 & amended by Notification No 61/2020 dated 30.07.2020, e-invoicing is not applicable to
a. Insurers,
b. Banking companies or financial institutions, including a non-banking financial company (NBFC),
c. Goods Transport Agency (GTA) supplying services in relation to transportation of goods by road in a goods carriage,
d. Suppliers of passenger transportation service,
e. Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens
f. Special Economic Zone Units
Now, Government departments and local authority are also exempted from e-invoicing w.e.f. 1-6-2021 by virtue of notification no. 23/2021.
2. Notification no. 24/2021 read with Notification no. 14/2021: Date of compliances which fall during the period from 15.04.2021 to 29.06.2021
Extension of time limit or limitation period on account of “force majeure” i.e. section 168A of CGST Act,
I. In case where:-
a. the limitation period of completion of any proceedings or issue of any notice, notification, intimation, sanction or approval or such other action etc. by any authority (Author Note: as such it means actions to be taken by GST Department etc.) OR
b. the limitation period for submitting any application, giving reply, filing of appeal etc. (Author Note: As such it means actions to be taken by taxpayers)
falls due between period starting from April 15, 2021 to June 29, 2021 then such limitation period shall get to be extended to June 30, 2021.However, such extension of limitation period shall not be applicable for the compliances of the following:
- Chapter IV of CGST Act: Related to time and place of supply;
- Section 10(3) of CGST Act: Related to composition levy:- The option availed of by a registered person u/se 10(1) shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the limit specified u/s10(1)
- Sections 25: Procedure for registration;
- Section 27: Special provisions relating to Casual Taxable Person & NRTP;
- Section 31: Tax Invoice;
- Section 37: Furnishing details of outward supplies;
- Section 47: Levy of late fee;
- Section 50Interest on delayed payment of tax;
- Section 69: Power to arrest;
- Section 90: Liability of partners of firm to pay tax;
- Section 122: Penalty for certain offences;
- Section 129: Detention, seizure and release of goods and conveyance in transit;
- Section 39, except sub-section (3), (4) and (5) related to TDS deductors, ISD and NRTPs;
- Section 68related to inspection of goods in movement, in so far as e-way bill is concerned; and
II. In cases where the limitation period for issue of Registration Certificate or Deficiency Memo or where reply to deficiency memo of Rule 9 of the CGST Rules falls in the period starting from May 01, 2021 to June 30, 2021 then such period shall stands extended to July 15, 2021.
III. Where notice of rejection of application of refund under Section 54 has already been issued and the limitation period for issue of such refund sanction order of Section 54(5) falls in between April 15, 2021 to June 29, 2021 then the limitation period shall stands extended to later of June 30, 2021 or upto 15 days of receipt of reply to notice.
3. Notification no. 25/2021:
The due date for filing FORM GSTR-4 for the financial year 2020-21 has been further extended from 31.05.2021 to 31stJuly 2021. Original due date was 30.04.2021.
4. Notification no. 26/2021: Due date for furnishing of FORM ITC-04 for the period Jan-March, 2021
As per Rule 45(3) of CGST Rule, Taxpayers who are liable to file Form ITC-04 for the goods dispatched to or received from job worker during any quarter on or before the 25th day of month succeeding of the said quarter or within such further period as may be extended by the Commissioner by a notification in this behalf
The date of ITC-04 for the quarter ending March 2021 has already been extended till 31st May 2021 by virtue of Notification no. 11/2021 which has further extended due date to 30th June 2021 through Notification no. 26/2021.
5. Compliance with rule 36(4)-Matching of ITC as claimed in GSTR-3B with GSTR-2A/2B (Notifications No. 27/2021).
Due to lockdown, dates of almost all compliances have been extended. For Example: In case of a monthly filer, GSTR-1 for the month of April 2021 can be filed without late fees upto 26th May2021. Meaning thereby, the recipient of such filer will get ITC only after 26th May2021 and where recipient wants to complete his compliance before 26th May2021 then it would be challenging for him as ITC will not be reflected in his GSTR-2B before 26th May2021. Therefore, in order to remove such type of difficulty second proviso of Rule 36(4) of CGST Rule has been substituted via notification no. 27/2021 which is mentioned as below:
Amendment to second proviso of rule 36(4) – Compliance of rule 36(4) is waived off for the tax period of April 2021 and May 2021, i.e. Taxpayer may claim ITC in GSTR-3B as per his books of accounts subject to compliances of Section 16 and 17 of the CGST Act. Cumulative adjustments of ITC for the months starting from April 2021 to June 2021 is to be considered while filing GSTR-3B for the month of June 2021 in accordance with Rule 36(4).
For Example: Suppose, ITC of Rs. 45,000 pertaining to April ‘2021 is not reflecting in GSTR-2A/2B for the month of April’2021. Then also, assesse can claim ITC (even if it results into claiming of ITC more than 5% as per Rule 36(4)), provided he has to reconcile such ITC at the time of filing GSTR-3B for the month of June’21 or quarter ending June’2021
6. Facility to use EVC for corporate tax payers (Notification No. 27/2021 and Notification No. 07/2021)
In case of companies, GST returns can be filed through DSC. However due to lockdown, it’s not always possible to have DSC for furnishing GST return etc. Therefore, Fourth proviso in Rule 26(1) of CGST Rule was introduced via Notification No. 07/2021. According to this proviso, if Companies are filing GSTR-3B and GSTR-1 between 27thApril 2021 to 31st May 2021 then they can file returns through EVC (Electronic Verification Code).
As period of lockdown has been extended, therefore this facility of furnishing GST return through EVC has also been extended till 31st August 2021 by amending the fourth proviso of Rule 26(1) through Notification no. 27/2021