GST Updates for the Month of June 2020

GST NEWS LETTER JULY MONTH

1) NIL GSTR-1 & GSTR-3B CAN BE FILED THROUGH SMS

• W.e.f. from 8^th June 2020 NIL return in form GSTR-3B & w.e.f. 1^st July, 2020 NIL return in form GSTR-1 can be furnished by SMS and the same shall be verified by registered mobile number based OTP facility.

(NN.58/2020-CT dated 1^st July 2020 read with NN.44/2020-CT dated 8^th June, 2020 & NN.38/2020-CT dated 5^th May, 2020-CT)

2) GST ON DIRECTORS REMUNERATION- A CONTROVERSY CREATED BY AAR RULING NOW STANDS RESOLVED BY CBIC-

(3) EXTENSION OF TIME-LIMIT FOR ISSUANCE OF  REFUND ORDERS U/S 54(7)  

• Cases where notice has been issued for rejection of refund claims in full or in part and where the time-limit for issuance of refund orders is falling between the period 20^th March, 2020 to 30^th August, 2020 the same shall be extended to
  • 15 days after the receipt of reply to the notice from regd. Person OR
  • 31^st August Whichever is later

 (NN.56/2020 dated 27^th June 2020-CT & NN.46/2020-CT dated 9th June 2020)

(4) VALIDITY OF E-WAY BILLS EXTENDED TILL 30^TH JUNE 2020

• Validity of E-way bills generated on or before 24^th March 2020 & has expired on or after 20^th March, 2020 shall be deemed to have been extended till 30^th June, 2020.

  (NN.47/2020-CT dated 9^th June, 2020)

(5) GSTR-1 & GSTR-3B CAN BE VERIFIED THROUGH EVC

• GSTR-3B : for the period April, May, June , July, August
• GSTR -1 :for the period of May ,June ,July, August (NN.48/2020-CT dated 19^th June 2020)

(6) RATE OF TAX PRESCRIBED FOR PERSONS OPTING COMPOSITION SCHEME UNDER SECTION 10(2A) w.r.e.f. 1^st April,2020

• Section 10(2A) inserted by finance Act 2019 w.e.f. 1^st Jan,2020 gives option to those taxpayers to pay tax under composition scheme who are not eligible to pay tax under sub section (1) & (2) and whose aggregate turnover in the preceding financial year did not exceed INR 50 lacs.
• Till now no rate of tax was prescribed for them in rules only maximum rate was mentioned in the Act.
• CBIC now amended rules by NN.50/2020-CT to prescribe rate of tax @3% (CGST & SGST each) of the [turnover of] supplies of goods & services in the state or Union Territory w.r.e.f. 1^st April, 2020. (NN.50/2020 dated 24^th June 2020)

(7) RELIEF PROVIDED BY LOWERING INTEREST RATES FOR TAX PERIODS FEB –JULY 2020

Taxpayers having aggregate turnover	Tax Periods	Interest Rates for late payment of taxes in GSTR-3B	Remarks
More than INR 5 Crores	Feb, March  &  April 2020	NIL-For first 15 days from due date   9% -Thereafter till 24th June 2020  18%-After 24th June  2020	Earlier NN. 31/2020 stated that if return is not filed by 24th June then interest rate @ 18% shall be applicable from due date.
Upto INR 5 Crores	Feb-July 2020	NIL-Till specified  date  9%-Thereafter till 30th September  18% -After 30th September	A relief provided to small taxpayers by specifying different dates for different states.

(NN.51/2020-CT dated 24^th June 2020 read with Circular No.141/11/2020-GST)

(8) WAIVING OF LATE FEES ON LATE FILING OF GSTR-3B FOR TAX PERIODS FEB-JULY AND ONE TIME AMNESTY BY LOWERING /WAVING LATE FEES FOR TAX PERIODS JULY 2017-JULY 2020

Taxpayers having aggregate turnover	Tax Periods	Condition:- GSTR-3B furnished	Remarks/Conditions
More than INR 5 Crores	Feb- April 2020	On or before 24th June 2020	Full Late fees waived otherwise late fees leviable from due date
		Till 30th Sept,2020	Maximum late fees INR 250 each  for CGST & SGST and no late fees if no tax payable in the said return
		After 30th Sept 2020	No Capping on maximum late fees
	May-July 2020	After due date but till 30th Sept,2020	Maximum late fees INR 250 each  for CGST & SGST and no late fees if no tax payable in the said return
		After 30th Sept 2020	No Capping on maximum late fees
Upto INR 5 crores	Feb-July 2020	Till specified dates	No late fees
		After specified dates but till 30th Sept,2020	Maximum late fees INR 250 each  for CGST & SGST and no late fees if no tax payable in the said return
		After 30th Sept 2020	No Capping on maximum late fees

Note-

For those taxpayers who failed to furnish GSTR-3B for the tax periods July-17 to Jan-2020 by due dates but furnishes the same between the periods 1^stJuly to 30^th September 2020-

• Maximum late fees shall be INR 250 each for CGST & SGST and
• No late fees if no tax is payable in the said return.

(NN.52/2020-CT dated 24^th June read with NN.57/2020-CT dated 30^th June 2020)

(9) LATE FEES FOR FILING OF GSTR-1 WAIVED FOR TAX PERIODS JAN-JUNE 2020

No late fees if GSTR-1 for below mentioned tax periods filed by the dates mentioned therein-

TAX PERIODS	GSTR-1 TO BE FILED BY DATE
March – 2020	10th July 2020
April-2020	24th July 2020
May-2020	28th July 2020
June-2020	5th August 2020
Jan-March 2020	17th July 2020
April-June 2020	3rd August 2020

(NN.53/2020-CT dtd 24th August 2020 read with Circular No.141/11/2020-GST)

(10)  GSTR-3B DUE DATE FOR AUG MONTH EXTENDED FOR SMALL TAXPAYERS

Taxpayers whose aggregate turnover in preceding FY Upto INR  5 crores can now file GSTR-3B for the month of August,2020  without any interest or late fees-

• On or before 1^st October &
• On or before 3^rd October 2020

Respectively depending upon the state where the taxpayer is having a place of business. (NN.54/2020-CT dated 24^th August 2020)

(11)DUE DATE OF COMPLIANCES FALLING BETWEEN THE PERIOD 20^TH MARCH TO 30^TH AUGUST 2020 EXTENDED UPTO 31^ST AUGUST,2020:

However such extension not applicable for-

• Persons opting out of composition scheme due to crossing of threshold limit
• Time & Value of Supply
• Issuing of tax invoices
• Liability for registration
• Generation of E-way bills
• Liability of firm partners to pay tax
• Power to levy interest on delayed payment of taxes
• Furnishing of GSTR-3B except for TDS return, ISD return and return for NRTP

(NN.55/2020-CT dated 27^th June 2020 read with NN.35/2020-CT dated 3^rd April 2020)