Notification No.: 27/2021 – Central Tax
Date of Notification: 1st June 2021
Relevant Sections and Rules
Central GST Act, 2017:
- Section 164 – Power to make rules (rule-making power invoked)
- Section 16 – Eligibility/conditions for ITC (context for Rule 36(4))
- Section 37 – Furnishing details of outward supplies (context for Rule 59/IFF)
- Section 39 – Furnishing of returns (context for GSTR-3B mentioned in Rule 36(4))
CGST Rules, 2017 (Fifth Amendment Rules, 2021):
- Rule 26(1) (fourth proviso) – EVC in lieu of DSC for companies; date in proviso extended to 31.08.2021 with effect from 31.05.2021.
- Rule 36(4) – ITC restriction to apply cumulatively for April–June 2021 with cumulative adjustment in GSTR-3B of June 2021/quarter ending June 2021.
- Rule 59(2) – Additional proviso allowing IFF for May 2021 to be furnished from 01.06.2021 to 28.06.2021.
Integrated GST Act, 2017:
- Not applicable.
Summary of Notification
1) EVC in place of DSC for companies—timeline extended:
The fourth proviso to Rule 26(1) is amended to substitute “31st May 2021” with “31st August 2021” (effective 31st May 2021), continuing the temporary facility for companies to verify GSTR-3B/GSTR-1/IFF using EVC instead of DSC.
2) Rule 36(4) ITC cap—cumulative application for Apr–Jun 2021:
The ITC restriction under Rule 36(4) will apply on a cumulative basis for April, May and June 2021. Taxpayers must make the cumulative adjustment in GSTR-3B for June 2021 (or the quarter ending June 2021, as applicable).
3) IFF window for May 2021 extended:
A new proviso under Rule 59(2) permits furnishing May-2021 details through IFF from 01.06.2021 to 28.06.2021, providing additional compliance time for QRMP taxpayers.
