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Table of Contents
[F. No. CBIC-20001/5/2021]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 01st June, 2021
Notification No. 02/2021 – Union Territory Tax: Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R (E).- In exercise of the powers conferred by section 21 of the UTGST Act, 2017 (14 of 2017), read with sub-section (1) of section 50 and section 148 of the CGST Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following further amendment in notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 10/2017 – Union Territory Tax, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 747(E), dated the 30th June, 2017, namely: —
In the said notification, in the first paragraph, in the first proviso,-
- for the words, letters and figure “required to furnish the returns in FORM GSTR-3B, but fail to furnish the said return along with payment of tax”, the words “liable to pay tax but fail to do so” shall be substituted;
- in the Table, in column 4, in the heading, for the words “Tax period”, the words “Month/Quarter” shall be substituted;
- in the Table, for serial number 4, 5, 6 and 7, the following shall be substituted, namely: —
| (1) | (2) | (3) | (4) |
| “4. | Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year | 9 per cent for the first 15 days from the due date and 18 per cent thereafter | March, 2021, April, 2021 and May, 2021 |
| 5. | Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under sub- section (1) of section 39 | Nil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafter | March, 2021 |
| Nil for the first 15 days from the due date, 9 per cent for the next 30 days, and 18 per cent thereafter | April, 2021 | ||
| Nil for the first 15 days from the due date, 9 per cent for the next 15 days, and 18 per cent thereafter | May, 2021 | ||
| 6. | Taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year who are liable to furnish the return as specified under proviso to sub-section (1) of section 39 | Nil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafter | March, 2021 |
| Nil for the first 15 days from the due date, 9 per cent for the next 30 days, and 18 per cent thereafter | April, 2021 | ||
| Nil for the first 15 days from the due date, 9 per cent for the next 15 days, and 18 per cent thereafter | May, 2021 | ||
| 7. | Taxpayers who are liable to furnish the return as specified under sub-section (2) of section 39 | Nil for the first 15 days from the due date, 9 per cent for the next 45 days, and 18 per cent thereafter | Quarter ending March, 2021”. |
2. This notification shall be deemed to have come into force with effect from the 18th day of May, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: The principal notification number 10/2017 – Union Territory Tax, dated the 30th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 747(E), dated the 30th June, 2017 and was last amended vide notification number 01/2021 – Union Territory Tax, dated the 1st May, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 312(E), dated the 1st May, 2021.
📚 Frequently Asked Questions (FAQs): Notification No. 02/2021 – Union Territory Tax
Q1️⃣: What is Notification No. 02/2021 – Union Territory Tax? 🧾
Answer:
This notification provides reduced GST interest rates for delayed tax payments during March to May 2021, due to pandemic disruptions. It temporarily amends Notification No. 10/2017 – Union Territory Tax, offering concessional interest to taxpayers based on their turnover.
👉 For professional GST guidance, visit Finodha GST Experts.
Q2️⃣: Why was this notification issued? 🎯
Answer:
The Government issued it to support taxpayers affected by COVID-19 lockdowns, ensuring they don’t face heavy financial penalties for delayed tax payments.
It’s part of India’s broader GST relief measures introduced to maintain liquidity among businesses.
Q3️⃣: What period does Notification No. 02/2021 cover? 📅
Answer:
It covers tax periods of March, April, and May 2021, offering temporary reduction in GST interest rates for these months.
This relief applies retrospectively from 18th May 2021.
Q4️⃣: Who is eligible for this interest rate relief? 👩💼👨💼
Answer:
All registered taxpayers under the UTGST Act, 2017 are eligible, including:
✅ Monthly return filers (GSTR-3B)
✅ Quarterly return filers under QRMP scheme
✅ Businesses with both above and below ₹5 crore annual turnover
For registration and compliance, visit Online GST Registration.
Q5️⃣: What are the key legal references behind this notification? ⚖️
Answer:
This notification is issued under:
Section 21 of the UTGST Act, 2017,
Section 50(1) and Section 148 of the CGST Act, 2017,
granting power to modify interest rates in the public interest on GST Council recommendations.
Q6️⃣: How does this amendment modify Notification No. 10/2017 – UTGST? 🧾
Answer:
It updates the previous table in Notification 10/2017 by:
✅ Replacing the phrase “required to furnish return in GSTR-3B” with “liable to pay tax”,
✅ Changing “Tax Period” to “Month/Quarter”,
✅ Substituting new relief entries for serial numbers 4 to 7, specifying reduced rates for March–May 2021.
Q7️⃣: How does this benefit small businesses? 💼
Answer:
Small businesses (turnover ≤ ₹5 crore) receive:
✅ Full interest waiver for 15 days from the return due date,
✅ 9% concessional rate for an extended window (up to 45 days),
✅ 18% standard rate only after the relief period.
This ensures smoother cash flow and fewer compliance penalties.
To maintain compliance, visit GST Compliance Services.
Q8️⃣: Does this notification apply to quarterly GSTR-3B filers under QRMP? 📊
Answer:
✅ Yes. For quarterly filers under Section 39(2) of the CGST Act, the notification provides a 15-day interest-free window, followed by a 9% interest period for 45 days, for the March 2021 quarter.
For quarterly filing support, visit GST Return Filing.
Q9️⃣: Where can taxpayers get help on GST relief and compliance updates? 💡
Answer:
You can connect with Finodha GST Professionals for:
🧾 GST Registration
💼 GST Compliance
📊 Income Tax Return (ITR)
🏢 Private Limited Registration
💻 Digital Signature Certificate (DSC)
Download PDF: Notification No. 02/2021 – Union Territory Tax
More Information: https://taxinformation.cbic.gov.in/
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