Detailed analysis of various GST Return Filling Compliance relief

Detailed Analysis of Relaxations/Relief Given On Various GST Return Filling Compliances In View of Covid-19

At the outset the entire country is facing the huge medical crisis resulting from spread of Coronavirus. Entire country is ordered by Government to be under a lockdown. In this troubling time in order to ease the burden of GST Compliance on tax payer, the CBIC has issued series of Notifications and a Circular providing relief to the tax payer in various GST compliances. Hereunder we have tried to analyze the same in detail.

For better understanding of the relaxations given by the CBIC, we have divided this analysis into three parts viz.

PART-A GST Compliance for the Period of February-2020 to April-2020

PART-B  GST Compliance for the Period of May-2020

PART-C  E-Way Bill & ITC Restriction

PART-D  Possible Anomaly

PART-A GST Compliance for the Period of February-2020 to April-2020

1. FORM GSTR-3B

1.1 Due dates for filling of GSTR-3B for the months of February-2020 to April-2020 is NOT extended but only Late filing fees is waived off. This waiver of late filing fees for delay in filing of return is available with a condition that tax payer file his Form GSTR-3B by revised dates notified for each of this month. Thus, in case tax payer could not file his Form GSTR-3B within this revised due date then late filing fees is payable from the date of originally prescribed due date.

1.2 For the purpose of revised due date of filling of Form GSTR-3B tax payers are divided in three groups viz.

Group-I= Tax payer having gross aggregate turnover exceeding   Rs.5.00 Cr. in preceding financial year

Group-II = Tax payer having turnover during preceding financial year is       exceeding Rs.1.50 Cr. but up to Rs.5.00 Cr.

Group-III = Tax payer having turnover during the preceding financial year is not exceeding Rs.1.50 Crore.

1.3 It is important to note that at the time deciding the group of tax payer you need to see turnover of FY 2018-19 while filling GSTR-3B for the month of February-2020 and March-2020 and at the same time you need to see the turnover of FY 2019-20 while categorizing the tax payer for GSTR-3B for the month of April-2020.

1.4 Proper categorization is of utmost important considering the fact that due date of filling of respective return is NOT EXTENDED but late filing fees is only waived off. Thus, if you will properly categorize the tax payer then you will be able to get proper revised due date and can take the benefit of waiver of late filing fees.

1.5 Various revised due dates for FORM GSTR-3B for the month of Februay-2020 to April-2020 are as under

Tax Payers having aggregate turnover in preceding financial year	Month	Original Due Date*	Revised Due Date	Remarks
More than Rs.5.00 Cr. (>Rs.5.00 Cr.)	Feb-2020	22.03.2020	24.06.2020	Preceding FY = 2018-19
	March 2020	22.04.2020	24.06.2020
	April 2020	22.05.2020	24.06.2020	Preceding FY= 2019-20
More than Rs.1.5 Cr. and upto Rs.5.00 Cr. (>Rs.1.50 Cr. & ≤ Rs.5.00 Cr.)	Feb- 2020	22.03.2020	29.06.2020	Preceding FY = 2018-19
	Mar-2020	22.04.2020	29.06.2020
	April-2020	22.05.2020	30.06.2020	Preceding FY= 2019-20
Up to Rs.1.5 Cr. (≤ Rs.1.50 Cr.)	Feb-2020	22.03.2020	30.06.2020	Preceding FY = 2018-19
	March 2020	22.04.2020	03.07.2020
	April 2020	22.05.2020	06.07.2020	Preceding FY= 2019-20

* Originally there are two due dates for Form GSTR-3B among various state viz. 22^nd day of Next month and 24^th Day of next month. We have taken 22^nd Day in our table. One needs to adjust the date as per their state.

2. GST GSTR-1

2.1 Returns Covered:-

Monthly Returns: – March-2020 to April-2020

(February-2020 Monthly return not covered for waiver of late filing fees)

Quarterly Returns: –   Quarter Ending 31/03/2020 only.

2.2 Here again it is important to note that due date of filling of Form GSTR-1 is not extended but only late filing fees for covered period is waived off. This waiver of late filing fees for covered period is available only if you file Form GSTR-1 for covered period by 30/06/2020.

2.3 If Form GSTR-1 for covered period is not filled by 30/06/2020 then late filing fees from the original prescribed due date shall apply.

Tax Payers aggregate turnover in preceding financial year	Month	Original Due Date	Revised Due Date	Remarks
More than Rs.1.50 Cr. (>Rs.1.5.0 Cr.)	March 2020	11.04.2020	30.06.2020	Preceding FY = 2018-19
	April- 2020	11.05.2020	30.06.2020	Preceding FY= 2019-20
Up to Rs.1.5 Cr. (≤ Rs.1.50 Cr.)	Jan-March 2020 Quarterly	30.04.2020	30.06.2020	Preceding FY = 2018-19

3. Composition Dealer

3.1 Return Covered:-  CMP-08 Ending March-2020 Quarter

GSTR-4 for the Financial Year Ending 31/03/2020

3.2 Here again it is important to note that due date of filling of Form GST CMP-08 and Form GSTR-4  is not extended but only late filing fees for covered period is waived off. This waiver of late filing fees for covered period is available only if tax payer files respective return for covered period by 07/07/2020 and 15/07/2020 respectively.

3.3 If Form GST CMP-08 and Form GSTR-4 for covered period is not filled by revised due dates then late filing fees from the original prescribed due date shall apply.

3.4 Those tax payer who wish to opt as a composition dealer w.e.f. 01/04/2020 can apply for the same by filling Form GST CMP-02 by 30/06/2020 and can file GST ITC-03 by 31/07/2020. This is again subject to the condition that tax payer has neither filled Form GSTR-3B nor Form GSTR-1 for the period commencing from April-2020. However, in case tax payer, who wishes to opt for a composition levy of GST file any of such return for the period commencing from April-2020, then the benefit of opting as composition dealer at an extended time shall not be available.

3.5 Needless to mention here that other conditions as required to be fulfilled by a composition dealer are to be fulfilled from 01/04/2020.

3.6 Various revised due dates for FORM CMP-08 and Form GSTR-4 for the quarter ending 31/03/2020 are as under

Composition Dealer	Form	Original Due Date	Revised Due Date
For the period of Jan-March Quarter Ending 31/03/2020	CMP 08	18/04/2020	07/07/2020
For financial year FY 2019-20	GSTR-4	30/04/2020	15/07/2020

4. INTEREST

4.1 For the purpose of levy of interest u/s 50 of the CGST, Act, 2017 dealers are categorized in to two groups viz.

Group-I = having turnover in preceding financial year is above Rs.5.00 Cr.

Group-II = having turnover in preceding financial year is below Rs.5.00 Cr.

4.2. For Group-I there is NIL rate of interest for first 15 days from the ORIGINAL due dates of payment of tax. Thereafter interest shall be levied @ 9% p.a from the 16^th day only. Thus in case tax payer paid tax after 18 days of delay then interest shall be levied for 3 days only. This first 15 days exemption and reduced rate of interest @9% shall be available subject to the condition that tax payer shall file his Form GSTR-3B within revised due dates prescribed.  Thus, if tax payer fails to file his GSTR-3B within revised due dates, then interest shall be levied @18% p.a. from the original date prescribed to pay such tax.

4.3 For Group-II there is NIL rate of interest. There shall not be any interest is payable for the late payment of GST for the period of Feb-2020 to April-2020. However, this interest waiver shall be available subject to the condition that tax payer shall file his Form GSTR-3B within revised due dates prescribed. Thus, if tax payer fails to file his GSTR-3B within revised due date then interest shall be levied @18% p.a. from the original date prescribed to pay such tax.

4.4 Refer following chart showing various dates and rate of interest

Chart showing various dates and rate of interest under GST

Tax Payers aggregate turnover in preceding financial year	Month	Original Due Date without interest*	Revised  Date Without Interest 15 days Relaxation	Interest @9% From and to	Interest @18%
More than Rs.5.00 Cr.  (>Rs.5.00 Cr.)	Feb-2020	22.03.2020	06.04.2020	07.04.2020 to 24.06.2020	If GSTR -3B not filled by 24/06/2020 then interest will be levied @18% from original due date of respective month
	Mar-2020	22.04.2020	07.05.2020	08.05.2020 to 24.06.2020
	April- 2020	22.05.2020	06.06.2020	07.06.2020 to 24.06.2020
More than Rs.1.5 Cr. and up to Rs.5.00 Cr. (>Rs.1.50 Cr. & ≤ Rs.5.00 Cr.)	Feb- 2020	22.03.2020	29.06.2020	Nil Rate of Interest till revised due date of Form GSTR-3B	If GSTR -3B not filled by 29/06/2020 then interest will be levied @18% from original due date of respective month
	Mar-2020	22.04.2020	29.06.2020
	April 2020	22.05.2020	29.06.2020
Up to Rs.1.5 Cr. (≤ Rs.1.50 Cr.)	Feb- 2020	22.03.2020	30.06.2020	Nil Rate of Interest till revised due date of Form GSTR-3B	If GSTR -3B not filled by original due date of Form GSTR-3B then interest will be levied @18% from original due date of respective month
	Mar-2020	22.04.2020	03.07.2020
	April 2020	22.05.2020	06.07.2020

* Originally there are two due dates for Form GSTR-3B among various state viz. 22^nd day of Next month and 24^th Day of next month. We have taken 22^nd Day in our table. One needs to adjust the date as per their state.

PART-B  GST Compliance for the Period of May-2020

1. Due date of filing of Form GSTR-3B for tax payer having aggregate turnover of exceeding Rs.5.00 Cr. in FY 2019-20 is EXTENDED to 27/06/2020. Here due date of filling of Form GSTR-3B is EXTENDED. Thus, in case of tax payer files his Form GSTR-3B for the month of May-2020 after 27/06/2020, then he shall be liable to pay late filing fees from the 28^th June, 2020 only.

2. Due date of filling of Form GSTR-3B for the tax payer having aggregate turnover up to Rs.5.00 Cr. during FY 2019-20 are staggered in two parts in State wise.

2.1 Due date is EXTENDED to 12/07/2020 for Category-I States viz. 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

2.2 Due date is EXTENDED to 14/07/2020 for Category-I States viz. Delhi  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 or Chandigarh.

3. Thus, in case of tax payer files his Form GSTR-3B for the month of May-2020 after 12/07/2020 or 14/07/2020, then he shall be liable to pay late filing fees from the 12/07/2020 or 14/07/2020 as applicable only.

4. As due date of filling of Form GSTR-3B is extended for the Month of May-2020 interest @18% p.a. shall be leviable from the date beyond this extended date.

5. Here again it is important to note that due date of filling of FORM GSTR-1 for the month of May-2020 is not extended but only late filing fees for May-2020 period is waived off. This waiver of late filing fees for May-2020 is available only if you file Form GSTR-1 by 30/06/2020. Thus,  If GSTR-1 for May-2020 is not filled by 30/06/2020 then late filing fees from the original prescribed due date shall apply.

6. Refer following chart showing various dates and rate of interest for the Month of May-2020

Tax Payers aggregate turnover in preceding financial year	Form for The Month of May-2020	Original Due Date	Extended Due Date for the month of May-2020	Remarks
More than Rs.5.00 Cr. (>Rs.5.00 Cr.)	GSTR-1	11.06.2020	30.06.2020 Revised Dt.	Preceding FY= 2019-20
	GSTR-3B	22.06.2020	27.06.2020
Up to Rs.5.00 Cr. (≤ Rs.5.00 Cr.)	GSTR-3B	22.06.2020	12.07.2020
	GSTR-3B	24.06.2020	14.07.2020
All tax payers	Interest shall be payable @18% for the delay in payment of GST beyond 12th or 14th July, 2020 (as applicable to respective state)
All tax payers	Late filing fees for filing of Form GSTR-3B for delay  period shall be payable for the period beyond 12th or 14th July, 2020 only (as applicable to respective state)

PART-C E-Way BILL & ITC Restrictions

1. 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.

2. RESTRICTION ON AVAILMENT OF ITC (Rule 36(4)

6.1 Present restriction of utilization of  ITC at lower of @110% of ITC as reflecting in Form GSTR-2A or actual ITC for the period,  shall not be apply for the period of February-2020 to August-2020. However, this restriction shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with present 10% restriction rule.

PART-D  Possible Anomaly

The default extension of due date is given for any GST Compliance falling for the Month of March-2020 to May-2020. Thereby general extension up to 30/06/2020 is given to compliance falling in these months. Among other this general exemption from compliance also covers compliance by GST Tax Deductor and GST Tax Collector. Now as per this default extension, a person who has made/collected TDS/TCS can file his GST TDS/TCS Return in compliance to provisions of sections 51 and 52 up to 30/06/2020 and thereby credit of such TDS/TCS will only be reflected in Cash Ledger of Deductee on filling of TDS/TCS return for which due date is up to 30/06/2020. Whereas, deductees on other hand is required to file his GSTR-3B before the said default extended due dates for the period of March-2020 to May-2020. Thus, though TDS is deducted by deductor (In most cases they are Government and Corporation under Government) credit of the same may not be available to him as due date of deductor is extended to 30/06/2020. Thus, there may be more cash outflow for deductees if they are required to pay GST in cash. Representation is required to be made in this regard so that deductees can get credit of his TDS/TCS in his respective month Form GSTR-3B return.

Reference:- CBEC Notification No.30/2020 to 35/2020 all dated 03^rd April, 2020 and Circular No.136/06/2020-GST Dated 03^rd April, 2020.

I am especially thankful to Adv. Saeed Mansuri for his assistance and help given in analyzing these relaxations and preparing this article.

DISCLAIMER

This information or attachment to this write-up is intended for knowledge sharing purpose only. All efforts have been made to ensure the accuracy of information in this write-up. The information contained in this write-up is published for the knowledge of the reader but is not to be relied upon as authoritative or taken as legal opinion by any means. While due care has been taken in the preparation of this write-up and information contained herein, but authors will not be responsible for any errors that may have crept in inadvertently and do not accept any liability whatsoever, for any direct or consequential loss howsoever arising from any use of this write-up or its contents or otherwise arising in connection herewith. In case of any discrepancy, reader is advised to refer the original source of the content.

Any suggestions/mistakes/counter view etc are most welcome. You may email the same at shakir@icai.org

STAY HOME STAY SAFE