Last updated on June 2nd, 2021 at 04:50 pm
43rd GST Council Meeting was held on Friday,28th May 2021. Finance Minister Nirmala Sitharaman chairs the virtual meeting which was held after a gap of more than seven months. The last GST Council Meeting i.e 42nd was held on 5th October 2020 with a follow-up meeting on 12th October 2020. Check here for key takeaways of the 42nd GST Council Meeting. Amendments made in provisions of the CGST Act in the Union Budget 2021 are also yet to be notified.
In the meantime, CBIC has issued various notifications extending due dates, wavier of late fees for a certain period, and reduction of interest rates if returns are furnished within the extended due dates. Click here for all the latest updates on GST.
Key takeaways from 43rd GST Council Meeting
Section 50 – Interest on delayed payment of tax
Proviso to Section 50(1) shall be inserted retrospectively which was proposed in Union Budget 2021. The amendment will be made effective retrospectively w.e.f. 1st July 2017.
Interest will be calculated on net tax liability except when proceeding u/s 73 or 74 has been initiated. When proceedings will be initiated interest will be calculated on gross tax liability.
Author’s Note: Telangana High Court Order in the case of M/s. Megha Engineering & Infrastructures Ltd. where a decision was given against the taxpayer. The taxpayer was asked to make the payment of interest on gross tax liability. Will there be any reversal of such interest collected???
Author’s Note: Will there be any refund or reversal for such interest already collected by the Government from the taxpayers on gross tax liability. Does this mean the taxpayers who read the law as it was and implemented it, in the same manner, were wrong???
GST Amnesty Scheme
Taxpayers will be permitted to furnish the pending GST returns with reduced late fees in the prescribed period.
Period of Relief: 1st July 2017 to 30th April 2021
Return: GSTR 3B (Note no relief has been given to composition taxpayers, input service distributors, electronic commerce operators)
Filing period:1st June 2021 to 31st August 2021
Capping of Late Fees:
No Tax Liability – Rs 500 per return
With Tax Liability – Rs 1,000 per return
Author’s Note: Will there be any refund or reversal for such late fees already collected by the Government from the taxpayers. Does this mean the taxpayers who could not furnish returns within the due dates but furnished with late fees after the due dates are being ditched and cheated? Doesn’t the GST Amnesty Scheme honor the non-filers under the GST regime and betray and cheat the compliant or scared taxpayers.
Rationalization of late fees u/s 47
An upper cap of late fees was fixed for different types of taxpayers to ease out the compliance burden on taxpayers for the prospective tax periods. Do note the effective date is yet to be notified by the Government.
[su_table responsive=”yes”]
| Category of taxpayer | Maximum Late Fees |
| Composition Taxpayer (GSTR 4) | No Tax Liability – Rs 500 per return |
| With Tax Liability – Rs 2,000 per return | |
| Taxpayers required to deduct TDS (GSTR 7) | Rs.50 per day |
| Rs 2,000 per return | |
| Regular Taxpayer having AATO up to Rs. 1.5 Crores (GSTR 3B) | No Tax Liability – Rs 500 per return |
| With Tax Liability – Rs 2,000 per return | |
| Regular Taxpayer having AATO between Rs. 1.5 Crores to Rs 5 Crores (GSTR 3B) | No Tax Liability – Rs 500 per return |
| With Tax Liability – Rs 5,000 per return | |
| Regular Taxpayer having AATO above Rs. 5 Crores (GSTR 3B) | No Tax Liability – Rs 500 per return |
| With Tax Liability – Rs 10,000 per return |
[/su_table]
Due Date extension
GST Annual Return (GSTR 9 & GSTR 9A)
GST Annual Return for the financial year 2020-21 will be mandatory for the taxpayers whose annual turnover exceeds Rs 2 crores.
GST Reconciliation Statement (GSTR 9C)
GST Reconciliation Statements for the financial year 2020-21 will be mandatory only for taxpayers whose annual turnover exceeds Rs 5 Crores. Self-certification of the reconciliation statement will suffice. Certification by a Chartered Accountant will not be required.
Note: GST notification for self-certification for GSTR 9C is not issued yet.
Note The decisions taken in the GST Council become effective only when notifications/circulars are issued through the Official Gazette.
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