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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. 08/2021 – Central 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 sub-section (1) of section 50 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with section 148 of the said Act, the Government, on the recommendations of the Council, hereby makes the following further amendments in notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2017 – Central 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. 661(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 per cent 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 per cent 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 18th day of April, 2021.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: The principal notification number 13/2017 – Central 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. 661(E), dated the 28th June, 2017 and was last amended vide notification number 51/2020 – Central 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. 404(E), dated the 24th June, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 08/2021 – Central Tax
Q1: What is Notification No. 08/2021 – Central Tax all about?
Answer:
This notification provides temporary relief on GST interest rates for delayed filing of returns for March and April 2021. It amends Notification No. 13/2017 – Central Tax to reduce interest for taxpayers, depending on their aggregate turnovernotfctn-08-central-tax-english-….
Q2: Who benefits from this notification?
Answer:
Taxpayers in all categories benefit:
👨💼 Businesses with turnover above ₹5 crores.
🏪 Businesses with turnover up to ₹5 crores filing under Section 39(1).
📄 Taxpayers filing under proviso to Section 39(1) (composition scheme).
🧾 Taxpayers filing under Section 39(2) (certain government bodies, etc.).
Q3: What are the revised GST interest rates for March & April 2021?
Answer:
Above ₹5 crores turnover → 9% for first 15 days from due date, then 18%.
Up to ₹5 crores turnover (monthly filers) → Nil for first 15 days, 9% for next 15 days, then 18%.
Up to ₹5 crores turnover (composition taxpayers) → Same as above.
Quarterly filers under Section 39(2) → Nil for first 15 days, 9% for next 15 days, then 18%.
Q3: What are the revised GST interest rates for March & April 2021?
Answer:
Above ₹5 crores turnover → 9% for first 15 days from due date, then 18%.
Up to ₹5 crores turnover (monthly filers) → Nil for first 15 days, 9% for next 15 days, then 18%.
Up to ₹5 crores turnover (composition taxpayers) → Same as above.
Quarterly filers under Section 39(2) → Nil for first 15 days, 9% for next 15 days, then 18%.
Q4: From when is this notification applicable?
Answer:
The notification is effective from 18th April, 2021, but covers the tax periods of March and April 2021.
Q5: How does this impact small businesses?
Answer:
Small businesses (with turnover up to ₹5 crores) get interest-free periods of 15 days, which helps them manage cash flow during COVID-19 disruptions.
Q6: How is this linked with Notification No. 13/2017 – Central Tax?
Answer:
Notification 08/2021 amends Notification 13/2017, which originally prescribed interest rates for delayed GST payment. This amendment introduced special reduced rates for the pandemic period.
Q7: Does this notification replace late fee waivers?
Answer:
❌ No. It only reduces interest rates. Waivers of late fees were separately notified under other GST notifications in 2021.
Q8: Can taxpayers still claim Input Tax Credit (ITC) if they delay filing returns?
Answer:
Yes ✅, but ITC can only be utilized after the return is filed. The notification does not restrict ITC, it only regulates interest payable on delay.
Q9: Why did the government issue this relief?
Answer:
The relief was issued due to COVID-19 disruptions, lockdowns, and liquidity challenges faced by taxpayers during March & April 2021.
Q10: Where can taxpayers get professional help for GST compliance?
Answer:
Taxpayers can consult GST Experts at Finodha. You can also explore:
GST Compliance
GST Return Filing
Online GST Registration
Income Tax Return Filing
Setup Business
✅ Summary:
Notification No. 08/2021 – Central Tax gives temporary GST interest relief for March & April 2021. Businesses get staggered rates – Nil → 9% → 18%, depending on turnover and filing category. This relief was part of the government’s pandemic response measures to ease compliance.
Download PDF: Notification No. 08/2021 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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