May, 2021 – Issue No. I

GST

Reduction in rate of interest:Concessional rates of interest in lieu of the normal rate of interest of 18% per annum for delayed tax payments have been prescribed in the following cases.

  1. For registered persons having aggregate turnover above Rs. 5 crore: A lower rate of interest of 9 per cent for the first 15 days from the due date of payment of tax and 18 per cent thereafter, for the tax payable for tax periods March 2021 and April 2021, payable in April 2021 and May 2021 respectively, has been notified.
  2. For registered persons having aggregate turnover upto Rs. 5 crore: Nil rate of interest for the first 15 days from the due date of payment of tax, 9 per cent for the next 15 days, and 18 per cent thereafter, for both normal taxpayers and those under QRMP scheme, for the tax payable for the periods March 2021 and April 2021, payable in April 2021 and May 2021 respectively, has been notified.
  3. For registered persons who have opted to pay tax under the Composition scheme: NIL rate of interest for first 15 days from the due date of payment of tax and 9 per cent for the next 15 days, and 18 per cent thereafter has been notified for the tax payable for the quarter ending 31st March, 2021, payable in April 2021.

Waiver of late fee:

  1. For registered persons having aggregate turnover above Rs. 5 crore: Late fee waived for 15 days in respect of returns in FORM GSTR-3B furnished beyond the due date for tax periods March, 2021 and April, 2021, due in the April 2021 and May 2021 respectively;
  2. For registered persons having aggregate turnover upto Rs. 5 crore: Late fee waived for 30 days in respect of the returns in FORM GSTR-3B furnished beyond the due date for tax periods March, 2021 and April, 2021 (for taxpayers filing monthly returns) due in April 2021 and May 2021 respectively / and for period Jan-March, 2021 (for taxpayers filing quarterly returns under QRMP scheme) due in April 2021.

Extension of due date of filing GSTR-1, IFF, GSTR-4 and ITC-04

  1. Due date of filing FORM GSTR-1 and IFF for the month of April (due in May) has been extended by 15 days.
  2. Due date of filing FORM GSTR-4 for FY 2020-21 has been extended from 30th April, 2021 to 31st May, 2021.
  3. Due date of furnishing FORM ITC-04 for Jan-March, 2021 quarter has been extended from 25th April, 2021 to 31st May, 2021.

Certain amendments in CGST Rules:

  1. Relaxation in availment of ITC: Rule 36(4) i.e. 105% cap on availment of ITC in FORM GSTR-3B to be applicable on cumulative basis for period April and May 2021, to be applied in the return for tax period May 2021. Otherwise, rule 36(4) is applicable for each tax period.
  2. The filing of GSTR-3B and GSTR-1/ IFF by companies using electronic verification code has already been enabled for the period from the 27.04.2021 to 31.05.2021.
  3. Extension in statutory time limits under section 168A of the CGST Act: Time limit for completion of various actions, by any authority or by any person, under the GST Act, which falls during the period from 15th April, 2021 to 30th May, 2021, has been extended upto 31st May, 2021, subject to some exceptions as specified in the notification.

IGST on Import of Oxygen Concentrators for personal use has been reduced from 28% to 12% to bring IGST rate on such personal imports at par with commercial imports of the same.This reduced IGST rate for imports of concentrator for personal use shall be applicable upto the 30/6/21.

INCOME TAX
Payment of amount payable under the Direct Tax Vivad se Vishwas Act, 2020, without additional amount, extended to 30th June 2021.
ComplianceIf last date falls onTime extension granted till
The filing of the belated income tax return under sub-section (4) and revised return under sub-section (5) of Section 13931.03.202131.05.2021
The appeal to Commissioner (Appeals)01.04.202131.05.2021
The objections to the Dispute Resolution Panel (DRP)01.04.202131.05.2021
The income-tax return in response to notice under Section 14801.04.202131.05.2021
The payment of the tax deducted under Section 194-IA, Section 194-IB and Section 194M, and the filing of the challan-cum-statement for such tax deducted30.04.202131.05.2021
Statement in Form number 61, containing the particulars of declarations received in Form number 6030.04.202131.05.2021

CBDT issues Format, Procedure and Guidelines for submission of Statement of Financial Transactions (SFT) for Mutual Fund Transactions by Registrar and Share Transfer Agent, and for depository transactions.

Form No. 34BB introduced for exercise of option for withdrawal of application under Section 245M.

CUSTOMS

Customs duty on import of Inflammatory Diagnostic (marker) kits, namely- IL6, D-Dimer, CRP(C-Reactive Protein), LDH (Lactate De-Hydrogenase), Ferritin, Pro Calcitonin (PCT) and blood gas reagents, exempted up to 31st October, 2021.

Definitive anti-dumping duty imposed on imports of Toluene Di-isocyanate (TDI) having isomer content in the ratio of 80:20, from European Union, Saudi Arabia, Chinese Taipei and UAE, for a period of 5 years from 2.12.2020.

Definitive anti-dumping duty imposed on import of 1-phenyl-3-methyl-5-Pyrazolon from China PR for a period of 5 years from 09.06.2020.

Anti-dumping duty imposed on imports of Polytetrafluoroethylene (PTFE) Products from China PR and Korea PR.

Customs formations to expedite clearances for Covid related imports.

DGFT

Import of oxygen concentrators for personal use through post, courier or e-commerce portals included in the list of exempted categories, where Customs clearance is sought as “gifts”, till July 31, 2021.

Import policy of mosquito killer racket is revised from ‘Free’ to ‘Prohibited’ if C.I.F value is below ₹ 121/per racket.

Import policy of Melon Seeds has been revised from ‘Free’ to ‘Restricted’ subject to the revised policy condition.

INSOLVENCY LAWS

IBBI amends Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2021.

IBBI amends Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. Registration fee, where applicable, to be paid by 30.06.2021 for the year 2020-2021. Amendments made in recognition of insolvency professional entities.