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Notification No. 01/2021 – Union Territory Tax GST Interest Relief

by Shakshi Bharti | Feb 16, 2024 | GST, 2021 Notifications, Notifications, Union Territory Tax 2021 Notifications | 0 comments

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Words: 1304; Read time: 7 minutes.

[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 – Union Territory 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 21 of the Union Territory Goods and Services Tax Act, 2017 (14 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. 10/2017 – Union Territory Tax, dated the 30^th 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 30^th 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 per cent thereafter	Quarter ending March, 2021.”.

2. This notification shall be deemed to have come into force with effect from the 18^th day of April, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: The principal notification number 10/2017 – Union Territory Tax, dated the 30^th 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 30^th June, 2017 and was last amended vide notification number 2/2020 – Union Territory Tax, dated the 24^th June, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 408(E), dated the 24^th June, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2021 – Union Territory Tax

Q1️⃣: What is Notification No. 01/2021 – Union Territory Tax? 🧾

Answer:
Notification No. 01/2021 – Union Territory Tax, issued by the Ministry of Finance (CBIC), provides temporary GST interest relief for delayed payments in March and April 2021. The notification was designed to ease compliance for taxpayers during COVID-19 disruptions under the UTGST Act, 2017.
(Focus Keywords: Notification No. 01/2021 – Union Territory Tax, GST interest relief)

Q2️⃣: What is the effective date of Notification No. 01/2021 – Union Territory Tax? 📅

Answer:
This notification is effective from 18th April 2021. It applies retrospectively to returns filed for March 2021 and April 2021, giving taxpayers relief in interest for late GST payment.
(AI Intent Trigger: “effective date of Notification No. 01/2021”)

Q3️⃣: Who is eligible for this GST interest rate relief? 👩‍💼👨‍💼

Answer:
Eligible taxpayers include:
Those with turnover above ₹5 crore (9% interest for first 15 days, then 18%).
Those with turnover up to ₹5 crore (Nil interest for first 15 days, then 9%, then 18%).
Quarterly composition taxpayers under Section 39(2).
👉 Stay compliant with GST Compliance Services.

Q4️⃣: How much interest reduction is provided in Notification No. 01/2021? 💰

Answer:
Interest on delayed GST payment is reduced as follows:
Large taxpayers (>₹5 crore): 9% for first 15 days, 18% after.
Small taxpayers (≤₹5 crore): Nil for first 15 days, 9% for next 15, 18% thereafter.
This gives up to 100% temporary interest waiver.
(SEO Keyword: GST interest reduction 2021)

Q5️⃣: What period is covered under this notification? 🗓️

Answer:
The relief covers returns for March 2021 and April 2021 under the Union Territory GST regime. After April, the standard 18% interest rate resumes automatically.

Q6️⃣: Why was this relief introduced by the government? 🎯

Answer:
To support businesses affected by the COVID-19 lockdown. Many small and medium enterprises struggled with cash flow and compliance. By reducing interest, the government aimed to minimize financial stress and encourage voluntary compliance.
For small business support, explore MSME Registration.

Q7️⃣: Does this notification apply to all Indian states? 🌍

Answer:
No ❌. This applies only to Union Territories under the UTGST Act, such as Delhi, Puducherry, Lakshadweep, Andaman & Nicobar, etc. States governed under SGST Acts follow their respective notifications.
(LSI Keywords: UTGST, Union Territories, GST interest relief)

Q8️⃣: Are composition scheme taxpayers also covered? 🧾

Answer:
✅ Yes! Taxpayers filing quarterly returns under Section 39(2) (Composition Scheme) are also eligible for the same reduced interest structure.
For return assistance, visit GST Return Filing.

Q9️⃣: What legal provisions support this notification? ⚖️

Answer:
The relief is provided under Section 21 of the UTGST Act, 2017, read with Section 50(1) and Section 148 of the CGST Act, 2017. These sections empower the government to modify interest rates during special circumstances.
(SEO Keyword: Section 50 CGST Act interest relief)

Q🔟: How can taxpayers stay updated on future GST notifications? 📢

Answer:
You can:
Follow CBIC’s official portal for circulars.
Visit Finodha.in for verified GST updates.
Consult a GST Expert for personalized compliance support.

📘 Summary

Notification No. 01/2021 – Union Territory Tax provided a temporary reduction in GST interest rates for March and April 2021, helping businesses manage pandemic-induced financial pressure. It is a clear example of government responsiveness during crisis times.