Import of COVID related items shall be exempt from IGST till 31st Aug, 2021

On 28th May, 2021 the GST Council met in New Delhi and took the following decisions-

1. As a COVID-19 relief measure, a number of specified COVID-19 related goods such as medical oxygen, oxygen concentrators and other oxygen storage and transportation equipment, certain diagnostic markers test kits and COVID-19 vaccines, etc., have been recommended for full exemption from IGST, even if imported on payment basis, for donating to the government or on recommendation of state authority to any relief agency.

2. This exemption shall be valid upto 31.08.2021.

3. The above exemption from IGST has been extended to Amphotericin B.

4. The GST rate on Diethylcarbamazine (DEC) tablets has been recommended for reduction to 5% (from 12%).

5. To provide relief to the taxpayers, late fee for non-furnishing FORM GSTR3B for the tax periods from July, 2017 to April, 2021 has been reduced / waived as under: -

   • Late fee capped to a maximum of Rs 500/- (Rs. 250/- each for CGST & SGST) per return for taxpayers, who did not have any tax liability for the said tax periods;

   • Late fee capped to a maximum of Rs 1000/- (Rs. 500/- each for CGST & SGST) per return for other taxpayers;

6. COVID-19 related relief measures for taxpayers:

   • For small taxpayers (aggregate turnover upto Rs. 5 crore)

     • March & April 2021 tax periods:

       • NIL rate of interest for first 15 days from the due date of furnishing the return in FORM GSTR-3B or filing of PMT-06 Challan, reduced rate of 9% thereafter for further 45 days and 30 days for March,2021 and April, 2021 respectively.

       • Waiver of late fee for delay in furnishing return in FORM GSTR3B for the tax periods March / QE March, 2021 and April 2021 for 60 days and 45 days respectively, from the due date of furnishing FORM GSTR-3B.

       • NIL rate of interest for first 15 days from the due date of furnishing the statement in CMP-08 by composition dealers for QE March 2021, and reduced rate of 9% thereafter for further 45 days.

     • For May 2021 tax period:

       • NIL rate of interest for first 15 days from the due date of furnishing the return in FORM GSTR-3B or filing of PMT-06 Challan, and reduced rate of 9% thereafter for further 15 days.

       • Waiver of late fee for delay in furnishing returns in FORM GSTR3B for taxpayers filing monthly returns for 30 days from the due date of furnishing FORM GSTR-3B.

   • For large taxpayers (aggregate turnover more than Rs. 5 crore)

     • A lower rate of interest @ 9% for first 15 days after the due date of filing return in FORM GSTR-3B for the tax period May, 2021.

     • Waiver of late fee for delay in furnishing returns in FORM GSTR3B for the tax period May, 2021 for 15 days from the due date of furnishing FORM GSTR-3B.

   • Certain other COVID-19 related relaxations to be provided, such as-

     • Extension of due date of filing GSTR-1/ IFF for the month of May 2021 by 15 days.

     • Extension of due date of filing GSTR-4 for FY 2020-21 to 31.07.2021.

     • Extension of due date of filing ITC-04 for QE March 2021 to 30.06.2021.

     • Cumulative application of rule 36(4) for availing ITC for tax periods April, May and June, 2021 in the return for the period June, 2021.

     • Allowing filing of returns by companies using Electronic Verification Code (EVC), instead of Digital Signature Certificate (DSC) till 31.08.2021.