In the light of the 43rd GST Council meeting held on 28th May 2021, the CBIC has released some notifications about the amendments announced in the GST council meeting.

The taxpayers were waiting for reliefs due to the pandemic hit financial years and when the economy is going haywire.

Many of these expectations were fulfilled, and some relief measures to the taxpayers were announced in this meeting.

This article will give you a summary of the notifications released by the CBIC on 1st June 2021.

Notification No. 27/2021 – CBIC GST Notifications

This notification is about the amendments made to the CGST Act, 2017.

Following are the significant amendments done to the CGST Rules Act, 2017:

  • A business registered under GST shall be allowed to furnish their GSTR-3B & GSTR-1 using IFF, which can be verified by Electronic Verification Code (EVC) from 27th April 2021 to 31st August 2021.
  • The IFF details for May 2021 can be furnished from 1st June 2021 up to 28th June 2021.
  • Rule 36 (4) of the CGST Act, 2017 shall cumulatively apply to the tax period April ’21 to June’ 21. In the light of this amendment, taxpayers are requested to furnish their GSTR-3B with accurate cumulative adjustment of their Input Tax Credit under GST.

To claim a maximum of 105% of Input Tax Credit under GST, you must have an automated reconciliation tool that gives you a detailed report with zero clerical errors & with this, you can claim maximum Input Tax Credit under GST.

GSTHero’s ITC reconciliation tool is one such automated solution to help you get maximum ITC without any human intervention & also notifies the defaulting suppliers to file their GSTR-1 on time.

Notification No. 26/2021 – CBIC GST Notifications

This notification is about the extension of the due date of filing the GST ITC-04 form. The due date to furnish the GST ITC-04 form has been extended up to 30th June 2021.

GST ITC-04 form deals with the goods sent to a job-worker or goods received from a job-worker between 1st January 2021 & 31st March 2021.

To learn more about claiming Input Tax Credit on Job-work, read our dedicated blog here.

Notification No. 25/2021 – CBIC GST Notifications

This notification speaks about the deadline extension for filing your GSTR-4 returns on the GSTHero portal.

The previous deadline was 31st March 2021.

The new deadline stands extended until 31st July 2021.

You can watch our YouTube video to understand the major differences between GSTR-4 & GSTR-9A.

https://gsthero.com/gstr-4-vs-gstr-9a-form-difference/

Notification No. 24/2021 – CBIC GST Notifications

This notification talks about the deadline for complying with any of the GST activities.

Deadlines for meeting the compliance requirements with the GST laws stands extended up to 30th June 2021.

The time limit for complying with any GST activities carried out by a registered person or business between 15th April 2021 & 29th June 2021 stands extended up to 30th June 2021.

Notification No. 23/2021 – CBIC GST Notifications

This notification has notified that the government departments and the local authorities have been EXCLUDED from the generation of e-Invoices.

e-Invoicing is an essential task for all eligible businesses and has become the new face of the GST structure.

However, businesses must have a robust IT infrastructure to generate e-Invoices in bulk with a completely automated solution.

GSTHero’s e-Invoicing solution allows you to generate e-Invoices right from your ERP, and you will not be required to visit the IRP portal even once!

Notification No. 22/2021 – CBIC GST Notifications

This notification speaks about waiving off the late fees on delayed filing or failure in filing the Form GSTR-7 for June 2021 & onwards.

The late fees have been reduced down to Rs. 50 per day per delayed return.

The maximum late fees payable are Rs. 2,000.

Notification No. 21/2021 – CBIC GST Notifications

This notification is regarding the relaxation in the late fees payable by a ‘Composition Dealer’ on the failure of filing the GSTR-4 return for the FY 2021-22 onwards.

Sr.no

Category of taxpayer

Late Fees

1

Composition taxpayers (with Nil return)

Rs.250 for CGST and SGST each per return.  i.e. Rs.500 per return

2

Regular taxpayers

Rs.1000 for CGST and SGST each per return.  i.e. Rs.2000 per return

Notification No. 20/2021 – CBIC GST Notifications

This notification notifies about the late fees levied on any composition dealer who fails to file form GSTR-4 for June 2021.

Sr.no

Category of taxpayer

Revised Late Fees

1

Taxpayer filing NIL GSTR-1 returns

Rs.500 per return

2

Taxpayers with annual aggregate turnover up to Rs 1.5 Crore in the preceding FY

Rs.2000 per return

3

Taxpayers with annual aggregate turnover between Rs 1.5 Crore to Rs. 5 Crore in the preceding FY

Rs.5000 per return

4

Taxpayers with annual aggregate turnover above Rs. 5 Crore in the preceding FY

Rs.10,000 per return

Notification No. 19/2021 – CBIC GST Notifications

Notifies regarding the delayed filing of the GSTR-3B returns between the tax period of July 2017 to April, 2021.

But this applies only if the taxpayer files his returns between 1st June 2021 to 31st August 2021.

Sr.no

Category of taxpayer

Late Fees

1

A taxpayer filing Nil returns (No tax liability in a tax period)

Rs.250 for CGST and SGST each per return.  i.e. Rs.500 per return

2

Other taxpayers

Rs.500 for CGST and SGST each per return.
i.e. Rs.1000 per return

Notification No. 17/2021 – CBIC GST Notifications

GSTR-1 returns filing due date stands extended from 11th June 2021 to 26th June 2021.

GSTR-1 is the return filed by every supplier for all the outward supplies made in a month.

Accurately filing of GSTR-1 by your supplier is essential as this shall reflect in the recipient’s GSTR-2B, which will further help you claim your Input Tax Credit for the month.

Notification No. 16/2021 – CBIC GST Notifications

CBIC has appointed the effective date of 1st June 2021 for provisions under Section 112 of the Finance Act, 2021, which has amended the Section 50 sub-section(1) of the CGST Act, 2021 with a retrospective effect.

This means that the interest shall be levied only on the tax amount paid by debiting the electronic cash ledger.

Conclusion

In this article, we have discussed the recent notifications released by the CBIC.

The taxpayers must stay compliant with the rules set by the CBIC regarding filing the GST returns.

For more such updates, stay tuned with GSTHero.

Stay updated; stay ahead!

Until the next time….


Gaurav Yadav

About the author

Gaurav is an Engineer by training with a deep interest in Economics & Finance. He has been associated with the Fin-Tech industry for quite some time now. He writes for GSTHero for topics including GST Compliance, GST Structure, etc & aims to break down complicated technical jargon into simple terms for the taxpayers.

His expertise includes GST Laws, Corporate Finance & Macro-Economics.

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