Important Keyword: GST notification no. 18/2021, GST interest relief March May 2021, Central Tax amendment, Notification No. 18/2021 – Central Tax, GST compliance
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[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 1st June, 2021
Notification No. 18/2021 – Central 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 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: —
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 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 08/2021 – Central 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. 304(E), dated the 1st May, 2021.
📚 Frequently Asked Questions (FAQs): Notification No. 18/2021 – Central Tax
Q1: What is Notification No. 18/2021 – Central Tax about?
Answer:
This notification, issued on 1st June 2021, provides relief in interest rates for taxpayers who delayed GST payments for March, April, and May 2021. It temporarily lowers the applicable interest rates under section 50(1) of the CGST Act, 2017, in light of COVID-19 challengesnotfctn-18-central-tax-english-….
Q2: Who benefits from this notification?
Answer:
Taxpayers across categories benefit:
✅ Businesses with turnover above ₹5 crores.
✅ Businesses with turnover up to ₹5 crores filing under section 39(1).
✅ Small taxpayers filing quarterly returns under section 39(2).
This ensures relief for large, small, and quarterly filers.
Q3: What concessional interest rates were prescribed?
Answer:
For turnover above ₹5 crores: 9% for the first 15 days after due date.
18% thereafter.
For turnover up to ₹5 crores: March 2021: Nil (first 15 days) → 9% (next 45 days) → 18% thereafter.
April 2021: Nil (first 15 days) → 9% (next 30 days) → 18% thereafter.
May 2021: Nil (first 15 days) → 9% (next 15 days) → 18% thereafter.
For quarterly filers (up to ₹5 crores): Quarter ending March 2021 → Nil (first 15 days) → 9% (next 45 days) → 18% thereafter.
Q4: From when is this notification effective?
Answer:
It is deemed effective from 18th May 2021. Thus, it applies retrospectively to the notified periods.
Q5: How is this relief linked to Notification No. 13/2017 – Central Tax?
Answer:
Notification 18/2021 amends Notification 13/2017 – Central Tax, which governs GST interest. Specifically, it substitutes certain words and modifies the table to introduce concessional rates.
Q6: Does this mean taxpayers don’t pay any interest at all?
Answer:
❌ No. The relief is only a temporary reduction of the rate. After the concessional window, normal 18% interest applies on delayed tax.
Q7: How does this benefit small taxpayers?
Answer:
Small taxpayers (turnover ≤ ₹5 crores) get complete waiver of interest for 15 days and a reduced 9% interest for additional time before the 18% rate applies. This eases their cash flow burden during COVID-19.
Q8: Can businesses still avail ITC benefits while using this relief?
Answer:
Yes ✅. The notification impacts interest on late tax payment, not ITC eligibility. However, timely GST return filing is still required to enjoy full ITC benefits. For compliance guidance, refer to 👉 GST Compliance Services.
Q9: How does Notification No. 18/2021 – Central Tax relate to other relief measures?
Answer:
It complements other COVID-19 relief notifications like:
Notification 19/2021 – Central Tax (waiver/reduction of late fee for GSTR-3B).
Notification 20/2021 – Central Tax (rationalized late fees for GSTR-1).
Together, they provided holistic relief in 2021 for taxpayers.
Q10: Where can businesses get expert help for GST compliance under this notification?
Answer:
Businesses can consult a GST Expert to:
Correctly calculate interest.
Ensure timely GST filing.
Plan cash flows better.
They can also explore GST Return Filing and GST Registration with professional assistance.
✅ In summary:
Notification No. 18/2021 – Central Tax provides temporary GST interest relief for March–May 2021, reducing rates for both large and small taxpayers, and is part of broader COVID-19 relief measures.
Download PDF: Notification No. 18/2021 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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