Notification No. 02/2021 – Integrated Tax Interest Relief

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Notification No. 02/2021 – Integrated 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 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 28^th 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 28^th 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 18^th day of May, 2021.

(Rajeev Ranjan)
Under Secretary to the Government of India

Note: The principal notification number 06/2017 – Integrated Tax, dated the 28^th 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 28^th June, 2017 and was last amended vide notification number 01/2021 – Integrated Tax, dated the 1^st May, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 311(E), dated the 1^st May, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 02/2021- Integrated Tax

Q1: What is Notification No. 02/2021 – Integrated Tax?

Answer:
It is a GST relief notification issued on 1st June 2021. It amends Notification No. 6/2017 – Integrated Tax to lower the interest rate for delayed GST payments for the months March, April, and May 2021 due to pandemic disruptions. 🧾

Q2: Who is eligible for reduced interest under this notification?

Answer:
The relief applies to:
Taxpayers with turnover above ₹5 crores 🏢
Taxpayers with turnover up to ₹5 crores 💼
Taxpayers filing returns under composition scheme (Section 39(2)) 📊

Q3: What are the revised interest rates for taxpayers above ₹5 crores turnover?

Answer:
For large taxpayers:
9% interest for the first 15 days from the due date.
18% interest thereafter.
Applicable for March, April, and May 2021.

Q4: What are the revised interest rates for taxpayers up to ₹5 crores turnover (monthly filers)?

Answer:
Relief depends on the return period:
March 2021: Nil for 15 days ➝ 9% next 45 days ➝ 18% thereafter.
April 2021: Nil for 15 days ➝ 9% next 30 days ➝ 18% thereafter.
May 2021: Nil for 15 days ➝ 9% next 15 days ➝ 18% thereafter.

Q5: What about small taxpayers under composition scheme (quarterly filers)?

Answer:
For quarter ending March 2021:
Nil interest for 15 days from due date.
9% for the next 45 days.
18% thereafter.

Q6: From when does this relief apply?

Answer:
The notification is deemed to have come into effect from 18th May 2021. All filings post this date could benefit from the reduced interest rate structure. 📅

Q7: How does this notification help taxpayers during COVID-19?

Answer:
It reduces the financial burden on taxpayers facing delays due to lockdowns and disruptions. By lowering interest, it encourages compliance while offering relief. 💡

Q8: How is this notification connected to earlier amendments?

Answer:
It amends the principal Notification No. 6/2017 – Integrated Tax.
The last amendment before this was Notification No. 01/2021 – Integrated Tax (dated 1st May 2021).
Together, these updates provided pandemic-related compliance relief.