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[F. No. CBEC-20/06/08/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 1st May, 2021
Notification No. 01/2021 – Integrated Tax: Seeks to provide relief by lowering of interest rate for the month of March and April, 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 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (1) of section 50 and section 148 of the Central Goods and Services Tax 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. 6/2017 – Integrated Tax, dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 698(E), dated the 28th June, 2017, namely:–
(i) In the said notification, in the first paragraph, in the first proviso, in the Table after S. No. 3, the following shall be inserted, 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 |
| 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 15 days, and 18 percent thereafter | March, 2021, April, 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 15 days, and 18 percent thereafter | March, 2021, April, 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 percent for the next 15 days, and 18 percent thereafter | Quarter ending March, 2021.”. |
2. This notification shall be deemed to have come into force with effect from the 18th day of April, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: The principal notification number 06/2017 – Integrated Tax, dated the 28th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G.S.R. 698(E), dated the 28th June, 2017 and was last amended vide notification number 5/2020 – Integrated Tax, dated the 24th June, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.410(E), dated the 24th June, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 01/2021- Integrated Tax
Q1: What is Notification No. 01/2021 – Integrated Tax about?
Answer:
This notification, issued on 1st May 2021, amends Notification No. 6/2017 – Integrated Tax. It provides relief by lowering interest rates on delayed GST payments for the tax periods of March 2021 and April 2021. 🧾
Q2: Who is eligible for the reduced GST interest rates?
Answer:
The relief applies to:
Taxpayers with turnover above ₹5 crores.
Taxpayers with turnover up to ₹5 crores (monthly filers).
Taxpayers under composition scheme (quarterly filers).
Q3: What are the reduced GST interest rates for large taxpayers (turnover above ₹5 crores)?
Answer:
9% interest for the first 15 days from the due date.
18% interest thereafter.
Applicable for March and April 2021.
Q4: What are the interest relief provisions for taxpayers up to ₹5 crores turnover (monthly filers)?
Answer:
For March & April 2021:
Nil interest for the first 15 days from the due date.
9% interest for the next 15 days.
18% interest thereafter.
Q5: What about taxpayers under the GST composition scheme?
Answer:
For taxpayers filing returns under Section 39(2) (quarterly):
Nil interest for the first 15 days from due date.
9% for the next 15 days.
18% thereafter.
This applies to the quarter ending March 2021.
Q6: From when does this relief notification apply?
Answer:
The notification is deemed effective from 18th April 2021, offering retrospective relief for the specified tax periods. 📅
Q7: How does Notification 01/2021 benefit taxpayers?
Answer:
Reduces financial stress during pandemic-related disruptions.
Provides extra time for filing GST returns without heavy interest burden.
Encourages better compliance. 💡
Q8: How is this notification connected to earlier amendments?
Answer:
It amends Notification No. 6/2017 – Integrated Tax, the principal IGST interest notification.
The last amendment was Notification No. 5/2020 – Integrated Tax (24th June 2020).
Together, these ensure pandemic-related relief for taxpayers.
🔗 Suggested Interlinks to Finodha.in
- 📌 GST Compliance – Stay updated on latest relief measures.
- 📌 GST Return Filing – File your returns correctly with reduced interest.
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- 📌 Private Limited Compliance – Keep your company fully compliant.
Download PDF: Notification No. 01/2021- Integrated Tax
More Information: https://taxinformation.cbic.gov.in/
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