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. In response to multiple requests and to reduce the problems experienced by many stakeholders, the Central Board of Direct Taxes (CBDT) has eased the restrictions under section 119 of the Income-tax Act, 1961.
- Appeals to the Commissioner (Appeals) under Chapter XX of the Act, with a filing deadline of 1st April 2021 or later, must be filed within the timeframe specified in that section, or by May 31, 2021, whichever comes first.
- 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, had a deadline of on or before Instead of March 31, 2021, it can now be finished 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 extreme problems experienced by taxpayers in completing legislative and regulatory compliances under GST legislation as a result of COVID-19, the government has issued a series of notifications, all dated May 1, 2021, that include various relief measures for taxpayers’ benefit. 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 reduced rate of interest of 9% for the first 15 days following the due date of tax payment, and 18% beyond that. 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, 0% interest for the first 15 days following the due date of tax payment, 9% for the following 15 days, and 18% thereafter
- Those who have opted to contribute to the Composition scheme: Taxes for the quarter ending March 31, 2021 are payable in April 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 those with a combined turnover of more than Rs. 5 crores, the following rules apply: Late penalties are deferred for 15 days for tax periods March 2021 and April 2021 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 deadline for submitting FORM GSTR-1 and IFF (due in May) has been extended by 15 days from April 1.
- 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 to apply FORM ITC-04 for the quarter of January-March 2021 has been extended from April 25 to May 31, 2021.
4.The following changes have been made to the CGST Rules:
- 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 in all other instances.
- 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. There are a few exceptions, as stated in the notification.