Due to the negative impact of the pandemic on small businesses, small taxpayers found it difficult to complete pending compliances under the GST Amnesty Scheme. Furthermore, small taxpayers lacked the resources to file the pending GSTR-3B by August 31, 2021.

Because of these concerns, the department has decided to extend the deadline for the GST Amnesty Scheme from August 31, 2021 to November 30, 2021. Small businesses and tax professionals will benefit greatly from the extension.

 The deadline for revocation of GST registration has been extended.

Many revocation applications were not cleared or processed by tax officers before the August 31, 2021 deadline. As a result of the cancellation of GST registration on the same account, taxpayers expressed their inability to file pending GST returns, particularly under the GST Amnesty Scheme.

In addition, in light of the plight of a number of other taxpayers, the government has extended the deadline until September 30, 2021. This extension applies only when tax officers cancel GST registrations for the following two types of taxpayers, according to the notification:

• To the three-quarters of the composition dealers who did not pay taxes or file returns.
• To regular taxpayers who haven’t filed a GSTR-3B in the last six months or quarters.

AAR ruling: No GST on up to Rs.1,000 per day in hostel rent

GST is exempt on hostel rent of less than Rs.1,000 per day per student, according to the Maharashtra Authority of Advance Ruling (AAR). M/s.Ghodawat Eduserve LLP (applicant) offers commercial training and coaching to students interested in taking IIT exams, among other things. The hostel offers residential facilities and charges a one-time fee of Rs.34,000 per student per year, which works out to about Rs.95 per day.

The AAR ruled that services provided by a hotel, guest house, inn, club, or campsite, by any name, for lodging or residential purposes, with a value of supply of a unit of accommodation of less than Rs.1,000 per day or equivalent, are exempt. As a result, hostel rent of up to Rs.1,000 per day per student is GST-free.

Finally, the department has issued a notice that the e-way bill blocking will begin on August 15, 2021, for all taxpayers who have pending GSTR-3B filings for the previous two months or quarter.