The Central Board of Indirect Taxes and Customs (CBIC) on 21st September of 2020 notified 3 Notifications in the official gazette. The purpose of the Notifications is to incorporate the decisions taken in the GST council meeting for reduction of late fees for filing of return. In this article we will discuss the notification and will try to have a complete picture and the impact of such notification.

1. Notification No. 66/2020-Central Tax (Extension of time limit for issue of Tax Invoice for sale on approval basis)

This notification extended the date of  issue of Tax invoice   for sale of  goods on approval basis. To understand the notification we need to have some background knowledge about sale of goods on approval basis. Section 31(7) of CGST Act apparently states that, where goods are transferred to recipient before supply on sale on approval basis, the Tax Invoice for such supply must be issued earlier of Supply or 6 months from the date when goods were transferred to recipient.

Now considering the supply chain problem wrought by Covid 19, the supplier who has sent the goods to outside India for sale on approval basis and  was / is required to issue invoice from period 20th march 2020 to 30th October 2020,can issue the tax invoice within 31st October 2020.

2. Notification No. 67/2020-Central Tax (Waiver of late fee for filing of return after due date)

Section 47 of CGST Act deals with the late fee for delay in filing of return. As per section 47, the late fee is 100 per day but maximum is 5000/-.

However the central government vide notification No 73/2017 dated 29th December, 2017 reduced the late fee  to rs 10/day ( Nill return ) and rs 25 / day( other than Nil return)  for delay in filing FORM GSTR –  4 .

Now the central government vide notification 67/2020 says that , if any person failed to file FORM GSTR 4 -return for the period July 2017 to march 2020 can file the return within 31st October 2020 without any late fee ( for nill return) or with a late fee of only 25/ day subject to maximum Rs 250/-.

(NOTE: It is a CGST ACT and CGST Notification , so amount paid shall be doubled as same amount shall be taken for SGST ACT also)

3. Notification No. 68/2020-Central Tax (Waiver of later fee for non filing of final return )

GSTR 10 is the return which is filed by the person whose registration has been cancelled. This is also called as the final return. Now keeping the disruption caused by the Covid – 19 , the central government has waived the late fee for non filing of GSTR-10 within the due date in excess of Rs 250. That is the maximum late fee that to be paid is Rs 250/- ( this amount to be doubled as the same amount to be considered for SGST ACT also).

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February 2021