Major Recommendation : 43rd GST Council Meeting held on 28th May, 2021

COVID-19 Relief:

As a COVID-19 relief measure, a number of specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency till 31.08.2021. Further in view of rising Black Fungus cases, the above exemption from IGST has been extended to Amphotericin B.

MEASURES FOR TRADE FACILITATION/AMNESTY SCHEME:

 1.  Relief to taxpayers regarding late fee for pending returns:

1. 1. Maximum late fee to be capped for Non furnishing of GSTR-3B to Rs 500/- (Rs 250 each for CGST & SGST) per return for the tax period July-2017 to April-2021, who do not have tax liability.
   2. Maximum late fee to be capped for Non furnishing of GSTR-3B to Rs 1000/- (Rs 500 each for CGST & SGST) per return for the tax period July-2017 to April-2021, for others.

Note: above late fee will apply if GSTR-3B returns furnished between 01.06.2021 to 31.08.2021.

 2.  Late fee imposed under section 47 of CGST Act, 2017 to be rationalized as follows:

The late fee for delay in furnishing of FORM GSTR-3B and FORM GSTR-1 to be capped, per return, as below:

(i)   For taxpayers having nil tax liability in GSTR-3B or nil outward supplies in GSTR-1, the late fee to be capped at Rs 500 (Rs 250 CGST + Rs 250 SGST)

(ii)  For other taxpayers:

• For taxpayers having Annual Aggregate Turnover (AATO) in preceding year upto Rs 1.5 crore, late fee to be capped to a maximum of Rs 2000 (1000 CGST+1000 SGST);
• For taxpayers having AATO in preceding year between Rs 1.5 crore to Rs 5 crore, late fee to be capped to a maximum of Rs 5000 (2500 CGST+2500 SGST);
• For taxpayers having AATO in preceding year above Rs 5 crores, late fee to be capped to a maximum of Rs 10000 (5000 CGST+5000 SGST).

(iii)  The late fee for delay in furnishing of FORM GSTR-4 by composition taxpayers

1. To be capped to Rs 500 (Rs 250 CGST + Rs 250 SGST) per return, if tax liability is nil in the return,
2. Rs 2000 (Rs 1000 CGST + Rs 1000 SGST) per return for others.

(iv)  Late fee payable for delayed furnishing of FORM GSTR-7 to be reduced to Rs.50/- per day (Rs. 25 CGST + Rs 25 SGST) and to be capped to a maximum of Rs 2000/- (Rs. 1,000 CGST + Rs 1,000 SGST) per return.

All the above proposals to be made applicable for prospective tax periods (To be notified by Government).

For more information, visit link mentioned below:

https://pib.gov.in/Pressreleaseshare.aspx?PRID=1722578