GST return deadlines extended; late fee waived

These concessions granted for a limited time window of a fortnight to a month, effective May 1

The government has extended the deadlines for routine Goods and Services Tax compliances, reduced the interest charged on delayed tax payments and offered late fee waiver for taxpayers, granting these concessions for a limited time window of a fortnight to a month, effective May 1. The Finance Ministry has said this is being done in view of the challenges faced by taxpayers in meeting the statutory and regulatory GST compliances due to the outbreak of the second wave of the COVID-19 pandemic. Instead of levying an 18% penal interest for delayed payments, the Ministry has lowered the rate to zero or 9% for different categories of taxpayers. Traders registered under the Composition Scheme will not have to pay interest for 15 days after the normal due dates for tax payments, 9% for the next 15 days and 18%, thereafter.