Weekly Updates [29 May – 04 June, 2021 – 205th Week of GST]

In order to give effect to the decisions taken in the 43rd meeting of the GST Council, the CG has issued the following notifications this week:

Notification No.SubjectEffective from (the earliest date…)16/2021 – CTEnforcement of amendment to Section 50 of the CGSTA, 201701 Jun, 202117/2021 – CTExtension of due date for FORM GSTR – 1 of May, 202101 Jun, 202118/2021 – CT, 02/2021 – IT and UTTLowering interest rates for tax periods March, 2021 – May, 202118 May, 202119/2021 – CTRationalization and waiver of late fee for delay in filing FORM GSTR – 3B from July, 2017 onwards20 May, 202120/2021 – CTRationalization of late fee for delay in filing FORM GSTR – 101 Jun, 202121/2021 – CTRationalization of late fee for delay in filing FORM GSTR – 401 Jun, 202122/2021 – CTRationalization of late fee for delay in filing FORM GSTR – 701 Jun, 202123/2021 – CTExclusion of Government departments and LA from the requirement of issuance of e-invoices01 Jun, 202124/2021 – CTExtension of due date of specified compliances which fall between 15 April, 2021 to 29 June, 2021, till 30 June, 202130 May, 202125/2021 – CTExtension of due date for filing FORM GSTR – 4 for FY 2020-21 to 31 July, 202131 May, 202126/2021 – CTExtension of due date for filing FORM GST ITC – 04 for quarter ending March, 2021 to 30 June, 202131 May, 202127/2021 – CTAmendment (Fifth of 2021) to the CGSTR, 201731 May, 202101/2021 – CT(R), IT(R) and UTT(R)Prescription of change in GST rate of goods02 Jun, 202102/2021 – CT(R) , IT(R) and UTT(R) Notification of GST rates of various services02 Jun, 202103/2021 – CT(R) , IT(R) and UTT(R) Amendment to Notfn. No. 06/2019 – CT(R), IT(R) and UTT(R)02 Jun, 202103/2021 – ITChange of PoS for B2B MRO services in case of Shipping Industry, to the location of the recipient02 Jun, 2021

Notification No. 16/2021 – CT

Through this notification, the CG has appointed 01 June, 2021 as the date on which Section 112 of the Finance Act, 2021 shall come into force. This section amends Section 50 of the CGST Act, 2017, as amended from time to time, by substituting the proviso to Section 50(1) with a new proviso. Prior to this amendment, the relevant part of the proviso read that the interest shall be “levied” on that portion of tax which is paid by debiting the e-CaL. However, now, the amended statement states that interest shall be “payable” on that portion of tax which is paid by debiting the e-CaL.

While levying implied only the imposition of the interest, payability now puts a liability on the defaulter taxpayer. This amendment has been brought in to bring the wordings of the proviso in line with Section 50(1), thereby making the defaulter taxpayer liable to pay the interest on his own, irrespective of whether the same is levied or not.

Notification No. 17/2021 – CT

Through this notification, the CG has further amended Notfn. No. 83/2020 – CT and replaced “April, 2021” in the 2nd proviso with “May 2021”, in order to extend the due date to furnish FORM GSTR – 1 for May, 2021 till 26 June, 2021.

Notification No. 18/2021 – CT, 02/2021 – IT and UTT

Through this notification, the CG has further amended Notfn. No. 13/2017 – CT by substituting certain parts of the proviso to first paragraph, which was inserted vide Notfn. No. 51/2020 – CT, to the effect that the benefit of lowering of interest rates shall be available not only to the taxpayers required to furnish FORM GSTR – 3B, but to the composition suppliers, as well. The said benefit has been summarized in the following table:

Notification No. 19/2021 – CT

Vide this notification, the CG has further amended Notfn. No. 76/2018 – CT, and the table given in the 8th proviso, pertaining to waiver of late fee for specified tax periods payable due to failure in furnishing FORM GSTR – 3B by the due date, has been substituted with the following w.e.f. 20 May, 2021:

Further, another proviso has been added to the aforesaid notification, in order to

provide amnesty to the defaulters who have still not filed FORM GSTR – 3B for any tax period between July, 2017 to April, 2021 by conditionally reducing the capping limit of the total late fee payable as follows:

rationalize the capping limit of the total late fee payable due to failure in furnishing FORM GSTR – 3B for tax period/ quarter ending June, 2021 onwards by the due date, as follows:

*No change has been made in the capping limit of total late fee payable u/s 47 in case of default in furnishing FORM GSTR – 3B by registered persons whose aggregate turnover is above ₹ 5 crores in the preceding FY and GST payable is any amount other than Nil.

Notification No. 20/2021 – CT

Vide this notification, the CG has further amended Notfn. No. 04/2018 – CT, and another proviso has been added to the aforesaid notification, in order to rationalize the capping limit of the total late fee payable due to failure in furnishing FORM GSTR – 1 for tax period/ quarter ending June, 2021 onwards by the due date, as follows:

*No change has been made in the capping limit of total late fee payable u/s 47 in case of default in furnishing FORM GSTR – 1 by registered persons whose aggregate turnover is above ₹ 5 crores in the preceding FY and outward supplies is not Nil.

Notification No. 21/2021 – CT

Vide this notification, the CG has further amended Notfn. No. 73/2017 – CT, and another proviso has been added to the aforesaid notification, in order to rationalize the capping limit of the total late fee payable due to failure in furnishing FORM GSTR – 4 for the FY 2021-22 onwards by the due date, as follows:

Notification No. 22/2021 – CT

Vide this notification, the CG has partially waived the amount of late fees payable on account of delay in furnishing FORM GSTR – 7 by deductors of tax at source u/s 51, for the month of June, 2021 onwards. After the said waiver, the late fee payable by the aforementioned defaulters shall be ₹ 50 (₹ 25 CGST + ₹ 25 SGST) per day from the due date, subject to a maximum amount of ₹ 2,000 (₹ 1,000 CGST + ₹ 1,000 SGST)

Notification No. 23/2021 – CT

Through this notification, the CG has further amended Notfn. No. 13/2020 – CT in order to exclude the Government departments and local authorities (LA) from the requirements of Rule 48(4). Hence, the aforementioned entities shall not be required to obtain IRN from the common portal and issue e-invoices to their recipients.

Notification No. 24/2021 – CT

Considering the further extension in the lockdown imposed by SG in certain states, Notfn. No. 14/2021 – CT has been amended in order to extend the due date of specified compliances which fall between 15 April, 2021 to 29 June, 2021, till 30 June, 2021. For the list of specified compliances, please refer to the aforesaid notification through the following button:

Notification No. 25/2021 – CT

The CG has further amended Notfn. No. 21/2019 – CT, thereby further extending the due date for filing FORM GSTR – 4 for FY 2020-21 to 31 July, 2021.

Notification No. 26/2021 – CT

The CG has hereby amended Notfn. No. 11/2021 – CT, in order to extend the due date for filing FORM GST ITC – 04 for quarter ending March, 2021 till 30 June, 2021.

Notification No. 27/2021 – CT

Through this notification, the CG has further amended the CGSTR, 2017, as amended from time to time, as follows:

The 4th proviso to Rule 26(1) has been amended in order to extend the facility to authenticate FORM GSTR – 1/ 3B and IFF through EVC, provided to a person registered under Companies Act, 2013, till 31 August 2021.The 2nd proviso to Rule 36(4) has been amended to provide that the condition laid out in Rule 36(4) shall be applied cumulatively for the period of April, May and June, 2021 and FORM GSTR – 3B for month/ quarter ending June, 2021 shall be furnished with the cumulative adjustment of ITC for the said months according to the aforementioned condition.The proviso to Rule 59(2) has been amended to provide that a registered person, who has opted for the QRMP scheme may furnish the details of B2B supplies made in May, 2021 using the IFF, on or before 28 June, 2021.

Notification No. 01/2021 – CT(R), IT(R) and UTT(R)

The CG has further amended Notfn. No. 01/2017 – CT(R), IT(R) and UTT(R), as amended from time to time, in order to –

alleviate the confusion regarding other articles of vulcanized rubber other than hard rubber [other than erasers, rubber bands]. Prior to this amendment, without any clear demarcation, these products fell in both 5% and 18% category. However, through this amendment, it has been clarified that 18% GST shall be leviable on all such products.Diethylcarbamazine (DEC), used for treatment of Lymphatic Filariasis, has been included in the list for 5% GST rate, thereby automatically removing it from 12% tax bracket.

Notification No. 02/2021 – CT(R), IT(R) and UTT(R)

Through these notifications, the CG has further amended Notfn. No. 11/2017 – CT(R)/ UTT(R) and 08/2017 – IT(R), as amended from time to time, to the following effects –

In Sl. No. 3 (construction services), against items (i), (ia), (ib), (ic) and (id), the following explanation to the 4th proviso of the conditions shall be added –
the landowner – promoter shall be eligible to utilize the ITC charged to him by the developer – promoter for payment of GST on apartments supplied by the landowner – promoter in such project.5% GST rate has been notified for “Maintenance, repair or overhaul services in respect of ships and other vessels, their engines and other components or parts.”

Notification No. 03/2021 – CT(R), IT(R) and UTT(R)

Through these notifications, the CG has amended Notfn. No. 06/2019 – CT(R), IT(R) and UTT(R) to the effect that instead of arising the liability to pay GST on notified cases on the date of issuance of completion certificate or first occupation, whichever is earlier, it shall now be paid in or before the tax period in which the date of issuance of completion certificate or its first occupation, whichever is earlier, befalls.

Notification No. 03/2021 – IT

In order to prevent double taxation or non-taxation of the supply of a service, the CG has further amended Notfn. No. 04/2019 – IT, to provide that in case of following service as well, the place of supply shall be the place of effective use and enjoyment of the service as specified below –

Description of SupplyPlace of SupplySupply of maintenance, repair or overhaul service in respect of ships and other vessels, their engines and other components or parts supplied to a person for use in the course or furtherance of businessThe place of supply of services shall be the location of the recipient of service

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