Inside the rules of relaxations consisting of late fee reductions, and extended last dates for furnishing the return, shall assist the assessee’s who has affected from the 2nd wave of covid-19.
The department on Friday stated that an amnesty policy beneath which the returns of the previous tax periods from July 2017 till April 2021 with no tax liability, furnished amid June 1, 2021, and August 31, 2021, is liable for the late fee of Rs 250 per return, capped at Rs 500. For other cases, the cap shall be Rs 1000. Furnishing for monthly and quarterly returns in the future the GST late fee 
Towards the conditions of turnover exceeding Rs 1.5 crore, a late fee is to be capped at Rs 2,000, and from Rs 1.5 crore to Rs 5 crore turnover, the late fee is capped at Rs 5,000. A maximum late fee of Rs 10,000 suggested for turnover should exceed Rs 5 crore.
All suggestions shall be informed via notifications through the finance ministry. “The recommendation to grant partial reduction and waiver of the late filing fee for specified tax periods together with a reduced rate of interest has come as a much-anticipated relief measure, especially in the backdrop of the pandemic and transitional issues faced due to the implementation of GST,” commented Ajinkya Gunjan Mishra, partner at L&L Partners.
For assessee beneath the composition policy for those who have no tax liability, the late fee has been capped at Rs 500 per return and up to Rs 2000 for the other cases. The assessee is needed to cut the tax deducted at source (TDS) and is to furnish the late fees of Rs 50 per day, which is capped at Rs 2000 per return. “The decision to allow the filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till August 31, 2021, is a welcome move as employees are operating in a work from home environment and may not readily have access to DSC,” stated Sandeep Jhunjhunwala, Partner, Nangia Andersen LLP.
A discounted rate of interest at 9% was declared for the late payment of the taxes for the month of March 2021, April 2021 and May 2021. Levied from the payment of interest is open for the first 15 days towards the months of March and April 2021 month for businesses with turnover up to Rs 5 crore, but there is no privilege provided for the May 2021 session towards the business whose yearly turnover exceeds Rs 5 cr.
The last date for furnishing the tax shall be extended through 15 days while the last dates for assessee beneath the composition policy furnishing the returns for FY21 is prolonged to 31 July. 30th June is the extended date for furnishing the input tax credit for the quarter ended March 2021.
Rather than CA certificate a Self-certification of reconciliation statement in GSTR-9C from FY21 shall enable the taxpayers to comply under the guidelines needing on time without going via dull procedure of audit via independent CA, experts stated.
The council has urged that the backdated change in section 50 of CGST with effect from 1st July 2017 giving the payment of interest on the grounds of net cash. Vineet Nagla, partner at White & Brief Advocates stated that “This is a welcome measure and was overdue, considering numerous judicial precedents wherein courts have held that interest liability should arise on net cash liability,”
