Extension of GST Compliance due date and Deferment of Input Tax Credit restrictions

The COVID-19 pandemic has forced governments to take unprecedented measures such as restricting travel and implementing strict quarantine requirements. In this difficult context, most countries are putting stimulus packages in place, including measures to support employment, for example, taking on the burden of unpaid salaries on behalf of companies suffering from the economic effects of COVID-19 pandemic.

Hon’ble Finance Minister made important tax announcements including extension of GST compliance deadlines amidst COVID-19 outbreak. The return compliance timelines have been extended in a staggered manner.

Briefly summarized the same, as under:  

A) Relaxation in applicability of interest rate and late fee for delayed furnishing Form GSTR 3B

Aggregate        turnover in preceding FY States Exceeding INR 5 crores Exceeding INR 1.5 crores and up to INR 5 crores Up to INR 1.5 crores
Month New Due dates

(GSTR 3B without Interest)

New Due

dates

(GSTR 3B with 9% Interest)

New Due dates

(GSTR 3B without Interest) – Refer notes

New Due dates

(GSTR 3B without Interest) – Refer notes

Feb 2020* All States 4 Apr 2020 24 Jun 2020 29 Jun 2020 30 Jun 2020
Mar 2020* 5 May 2020 24 Jun 2020 29 Jun 2020 3 Jul 2020
Apr 2020*  4 Jun 2020 24 Jun 2020 30 Jun 2020 6 Jul 2020
May 2020** All States 27 Jun 2020
Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep 12 Jul 2020
Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi 14 Jul 2020

*Interest and late fee waived

**Due date has been extended

Note 1: If GSTR3B is filed post specified (extended) due date, interest @18% would be applicable

Note 2: No late fee/penalty will be levied for delay in filing of GSTR3B if the same are filed on  or before specified extended due dates 

            [Notification No. 31, 32 and 36 /2020 – Central Tax dated 3rd April, 2020]

B) Relaxation in late fee for delayed furnishing of Form GSTR 1

Late fee would not be applicable if the taxpayer files GSTR1 before following due dates:

Month New Due dates

 

Mar 2020 30 June 2020
Apr 2020 30 June 2020
May 2020 30 June 2020

[Notification No. 33/2020 – Central Tax dated 3rd April, 2020]

C) Extension in due date for other Compliance’s

  • Any compliance’s/ actions falling within the period 20 March 2020 to 29 June 2020 shall be extended upto 30 June 2020

[Notification No. 35/2020 – Central Tax dated 3rd April, 2020]

D) Monthly compliance with input Tax Credit (‘ITC) restriction (i.e. 110% of matched credit) deferred till September 2020

Monthly compliance with the ITC restriction as envisaged under Rule 36(4) that a registered person cannot avail ITC exceeding 110% of eligible invoices uploaded by the vendors has been deferred till September, 2020 for the tax periods Feb, 2020 till Aug, 2020. However, the said ITC restriction shall be applied cumulatively for the period Feb 20 to Aug 20 and would be given effect (i.e. cumulative adjustment to be done) while filing GSTR3B for the month of Sep-2020

Rule 36(4) states that input credit availed related to invoices/debit notes not appearing in 2A shall not exceed 10% of the eligible credit uploaded by supplier. Condition under rule 36(4) shall not apply to input tax credit availed by the registered persons in the returns in FORM GSTR3B for the months of February, March, April, May, June, July and August, 2020, but that the said condition shall apply cumulatively for the said period and that the return in FORM GSTR3B for the tax period of September, 2020 shall be furnished with cumulative adjustment of input tax credit for the said months in accordance with the condition under rule 36(4).

[Notification No. 30/2020 – Central Tax dated 3rd April, 2020]

Author Bio

Qualification: CA in Job / Business
Company: India Infoline Finance Limited
Location: Mumbai, Maharashtra, IN
Member Since: 05 Apr 2020 | Total Posts: 3
Chartered Accountant with 12 years’ experience in Direct & Indirect Taxation, Planning & Tax Strategy, GST, Handling Litigation, Assessments, Appeals, Audit Assessments Expertise in rendering strategic consultation & guidance on taxation issues affecting costs, operational perfor View Full Profile

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