Relaxation In GST Compliances Due To Outbreak of Covid 19

(# There is no change in Due dates of GSTR 3B/1 #)

On 24th March 2020, Hon’ble Finance Minister has announced various relaxation in compliances of various fiscal laws including GST. Accordingly, on 3rd April 2020, government has issued Notification No 30/2020 CT to 36/2020 CT to provide for all such relief under GST.

It is important to note that, there is no change in due date of GSTR 3B / GSTR 1 of Feb 2020, Mar 2020, April 2020 and May 2020. Only relaxation is given in terms of Interest and Late fees, with certain condition. If returns are filed after date given, then Interest and Late will be payable from original due date.

BELOW IS SHORT NOTE OF SUCH RELIEF MEASURES: 

a) RELIEF FROM INTEREST PAYMENT, DUE TO LATE PAYMENT OF TAX/ LATE FILING OF RETURN Said relief is provided for Feb 2020, Mar 2020 and April 2020 month only, as per below table 

IF TURNOVER IS PRECEDING F.Y. IS APPLICABLE RATE OF INTEREST
More than ₹ 5 Crore → If GSTR 3B is filed for said month is filed upto 24th June 2020

√ Nil – for first 15days

√ 9% – Thereafter, if GSTR 3B is filed upto 

→ If GSTR 3B is filed for said month is filed after 24th June 2020

√ Normal Interest rate i.e. 18%

(Note –  In our view, it will be applicable from actual due date and reduced rate of interest of 9% won’t be applicable in this case )

More than ₹ 1. 5 Crore but less than ₹ 5 Crore → If GSTR 3B is filed upto 29th June 2020 (for Feb and Mar 2020) and 30th June 2020 ( for April 2020)

√ Nil

→ If GSTR 3B is filed for said month after 29th /30th June 2020

√ Normal Interest rate i.e. 18%

(Note –  In our view, it will be applicable from actual due date and nil rate of interest won’t be applicable in this case )

Less than ₹ 1.5 Crore → If GSTR 3B is filed for said month upto 30th June 2020 (for Feb 2020), 3rd July 2020 (for Mar 2020) and 6th July 2020 (for April 2020)

√ Nil 

→ If GSTR 3B is filed for said month is filed after 30th June/ 3rd July /6th July 2020

√ Normal Interest rate i.e. 18%

(Note – In our view, it will be applicable from actual due date and nil rate of interest won’t be applicable in this case)

 [Notification No 31/2020 CT dated 3rd April 2020] 

b) RELIEF FROM LATE FEE ON LATE FILING OF GSTR 3B – Said relief is provided for Feb 2020, Mar 2020 and April 2020 month only, as per below table. 

IF TURNOVER IS PRECEDING F.Y. IS APPLICABLE LATE FEE
More than ₹ 5 Crore → If GSTR 3B is filed for said month is filed upto 24th June 2020

√ Nil 

→ If GSTR 3B is filed for said month is filed after 24th June 2020

√ Normal Late fee that is Rs 50 / Rs 20 per day as applicable

(Note – In our view, it will be applicable from actual due date and Nil late fee won’t be applicable in this case)

More than ₹ 1. 5 Crore but less than ₹ 5 Crore → If GSTR 3B is filed upto 29th June 2020 (for Feb and Mar 2020) and 30th June 2020 (for April 2020)

Nil  

→If GSTR 3B is filed for said month after 29th /30th June 2020

√ Normal Late fee that is Rs 50 / Rs 20 per day as applicable

(Note – In our view, it will be applicable from actual due date and Nil late fee won’t be applicable in this case)

Less than ₹ 1.5 Crore → If GSTR 3B is filed for said month upto 30th June 2020 (for Feb 2020), 3rd July 2020 (for Mar 2020) and 6th July 2020 ( for April 2020)

Nil 

→ If GSTR 3B is filed for said month is filed after 30th June/ 3rd July /6th July 2020

√ Normal Late fee that is Rs 50 / Rs 20 per day as applicable

(Note – In our view, it will be applicable from actual due date and Nil late fee won’t be applicable in this case)

 (Due date for GSTR 3B of May 2020 is also extended upto 27th June 2020 / 12th July 2020 /14th July 2020 as per criteria listed in Notification No 36/2020 CT dated 3rd April 2020)

[Notification No 32/2020 CT dated 3rd April 2020] 

c) RELIEF FROM LATE FEE ON LATE FILING OF GSTR 1

> Said relief is provided only for Return for Mar 2020, April 2020, May 2020 month and Return for Q4 of F.Y. 2019-20

> Nil late fee, if return for said month is filed before 30th June 2020.

> Applicable Late will from original due date will be applicable, if return is filed after 30th June 2020

[Notification No 33/2020 CT dated 3rd April 2020]

d) RELIEF FROM VALIDITY OF E WAY BILL

>Where an e-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020

[Notification No 35/2020 CT dated 3rd April 2020]

e) RELIEF FOR COMPOSITION TAX PAYER –

>Time limit for opting composition scheme for F.Y. 2020-21 by filing intimation in Form CMP 02 is extended upto 30th June 2020

> Those who wish to opt as per above, required to be file Form ITC 03 by 31st July 2020

>Tax for Q 4 of F.Y. 2019-20 is to be paid by 7th July 2020 by filing return in Form GST CMP 08.

> Return in FORM GSTR-4 for F.Y. 2019-20 is to be filed by till the 15th day of July, 2020

[Notification No 30/2020 CT dated 3rd April 2020 and Notification No 34/2020 CT dated 3rd April 2020]

f) ITC RESTRICTION OF 10% AS PER RULE 36(4) OF CGST RULES 2017 – 

> ITC restriction of 10% as per Rule 36(4) of CGST Rules 2017 for Feb 2020, Mar 2020, April 2020, May 2020, June 2020, July 2020 and Aug 2020 is required to be applied cumulatively for all these months and adjustment of any extra/less claim during these months, is required to be done in GSTR 3B of Sep 2020.

[Notification No 30/2020 CT dated 3rd April 2020]

g) EXTENTION FOR OTHER COMPLIANCE UNDER ACT – 

where, any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under the said Act, which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall be extended upto the 30th day of June, 2020, including for the purposes of–

(a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above; or

(b) filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the Acts stated above

[Notification No 35/2020 CT dated 3rd April 2020] 

This article is only for educational purpose.  For any clarification, you may contact the author on: info@gst-at.com| +91 8888 343 343.

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