In light of the extreme pandemic, the government has extended the deadlines for certain compliances.
Due to the extreme Covid-19, taxpayers and tax consultants have demanded that enforcement deadlines be relaxed. Certain deadlines for tax refunds have been extended by the government. The Central Board of Direct Taxes (CBDT) has relaxed the rules under section 119 of the Income-tax Act, 1961, in response to several representations and to reduce the difficulties faced by various stakeholders.
- Appeals to the Commissioner (Appeals) under Chapter XX of the Act, with a filing deadline of 1st April 2021 or later, must be submitted within the period allowed under that Section or by 31st May 2021, whichever is early.
- Objections to the Dispute Resolution Panel (DRP) under Section 144C of the Act must be submitted by the 1st of April 2021, rather than the 31st of May 2021 as previously stated.
- Income-tax returns in relation to notices sent under Section 148 of the Act, with a due date of April 1, 2021, or later, must be submitted by May 31, 2021.
- The filing of a belated return under section (4) and a revised return under section (5) of the Act for the Assessment Year 2020-21, which was due on or before March 31, 2021, can now be done on or before May 31, 2021.
- Sections 194-IA, 194-IB, and 194M tax deductions and challan-cum-statement for the tax deducted which was to be paid by April 30, 2020, now be submitted By May 31, 2021.
- Statement in Form No. 61, including particulars of declarations obtained in Form No. 60, which is to be submitted on 30 April 2021 now it must be submitted on 31 May 2021
Dates Extended: Relief measures for GST taxpayers due to the outbreak of Covid-19
Due to the difficulties faced by taxpayers in meeting legislative and regulatory compliances under GST law because of COVID-19, the government has published a list of notifications, all dated May 1, 2021, that include various relief measures for the benefit of taxpayers The below are the measures:
1.Reduction in the interest rate:
In the following situations, the concessions rate of interest has been prescribed in place of the usual rate of 18 % a year for late tax payments.
- For registered persons with a combined turnover of more than Rs. 5 crores: A lower rate of interest of 9% for the first 15 days from the due date of payment of tax, and 18% thereafter. The dates of April 2021 and May 2021 have been set.
- For those with a total turnover of up to Rs. 5 crores: For both normal taxpayers and for those under the QRMP scheme for the tax payable for the period March 2021 and April 2021, payable in April 2021 and May 2021 respectively, zero rates of interest for first 15 days from the due date of payment of tax 9 percent for the next 15 days, and 18 percent thereafter,
- For those who have chosen to pay tax into the Composition scheme: Taxes are due in April 2021 for the quarter ending March 31, 2021. The interest rate is 0% for the first 15 days after the tax payment is due, then 9% for the next 15 days, and 18% after that.
2. Waiver of late fee
- For registered persons with a combined turnover of more than Rs. 5 crores: For tax periods March 2021 and April 2021, late fees are suspended for 15 days if returns in FORM GSTR-3B are filed after the due date and are due in April 2021 and May 2021, respectively.
- For those with a total turnover of up to Rs. 5 crores: For returns in Form GSTR-3B filed after the due date, the late fee is waived for 30 days. For the tax period March 2021 and April 2021 (for taxpayers filing monthly returns), April 2021 and May 2021 are the due dates.
3. GSTR-1, IFF, GSTR-4, and ITC-04 due dates have been extended.
- The April due date for filing FORM GSTR-1 and IFF (due in May) has been extended by 15 days.
- The deadline for filing Form GSTR-4 for Fiscal Year 2020-21 has been extended from April 30, 2019, the year 2021 runs from May 1st, 2021 to May 31st, 2021.
- The deadline for submitting FORM ITC-04 for the January-March 2021 quarter has been extended from April 25 to May 31, 2021.
4. CGST Rules have been amended in the following ways:
- ITC Relaxation: Rule 36(4), i.e. a 105 percent limit on ITC in FORM GSTR-3B, will apply on a combined basis for the months of April and May 2021, and will be applied in the May 2021 return. In other cases, rule 36(4) applies to each tax period.
- Companies using electronic authentication codes will now file GSTR-3B and GSTR-1/IFF for the date of April 27, 2021 to May 31, 2021.
5. Under section 168A of the CGST Act, statutory time limits are extended:
The deadline for completing acts under the GST Act, which occurs between April 15th and May 30th, 2021, has been extended to May 31st, 2021. As mentioned in the notice, there are several exceptions.