1. Government vide Notifications No. 31/2020 & 32/2020 dated 03.04 2020 has notified waiver of late fee & penalty / lower rate of interest for late filing of GSTR 1 and GSTR 3B. However, due dates for filing GSTR 1 and GSTR 3B have not been extended.
2. As per Notification No. 31/2020 , the taxpayers having an aggregate turnover of more than rupees 5 crores who are required to furnish the returns in FORM GSTR-3B for the months of February, 2020, March 2020, April, 2020 by the due date but furnish the said return on or before the 24thday of June, 2020 shall be charged NIL interest for first 15 days from the due date, and 9 per cent thereafter along with payment of tax.
|3. Extract of relevant proviso – Notification No. 31/2020-Central Tax dated 03 Apr 2020
“Provided that ,the rate of interest per annum shall be as specified in column (3) of the Table given below, for the class of registered persons, mentioned in the corresponding entry in column (2) of the said Table, who are required to furnish the returns in FORM GSTR-3B, but fail to furnish the said return along with payment of tax for the months mentioned in the corresponding entry in column (4) of the said Table by the due date, but furnish the said return according to the condition mentioned in the corresponding entry in column (5) of the said Table, namely:-‑
4. Nowhere , in the notification , it has been mentioned that due date of filing of GSTR 3B has been extended . Further , the said Notification has been issued in exercise of the powers conferred by sub-section (1) of section 50 of the Central Goods and Services Tax Act, 2017 (12 of 2017)’ . Section 50 of CGST Act dealt with Interest and not the due dates .
5. Even Notification No. 35/2020 excludes Returns under Sec 37 & 39 ( along with few other sections ) for extending due dates of compliances . As per Notification No. 35/2020 , time limit for completion of compliances which falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020 has been extended up to the 30th day of June, 2020.
4.1 Second Para of the said notification indicates that the above extension is not applicable for specific provisions of CGST Act 2017 . Sec 37 (GSTR 1 ) & Sec 39 ( GSTR 3B ) are also mentioned for such exclusion .
|5. Extract of relevant proviso – Notification No. 35/2020-Central Tax dated 03 Apr 2020
(i) 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 up to the 30th day of June, 2020, including for the purposes of —
but, such extension of time shall not be applicable for the compliances of the provisions of the said Act, as mentioned below‑
(a) Chapter IV;
(b) sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129;
(c) section 39, except at-section (3), (4) and (5);
6. However , it is confirmed that amount of late fee payable shall stand waived for the months of March, 2020, April, 2020 and May, 2020, and for the quarter ending 31st March, 2020 for all the taxpayers who failed to furnish the details of outward supplies for the said periods in FORM GSTR-1 by the due date, but furnishes the said details in FORM GSTR-1, on or before the 30th day of June, 2020.”.
7. A lower rate of interest is notified vide Notification No. 31/2020 dated 03.04.2020 for those registered persons having aggregate turnover above Rs. 5 Crore. Accordingly if , tax payer files his GSTR 3B (for the period March 20, Apr 20 & May 20 ) on or before 24th June 2020 . Interest shall be charged as follows :-
NIL for 15 days delay from the due date of return & 9% thereafter .
If the tax payers fails to file his returns for the periods ( Mar 20-May 20) till 24th June 2020 , interest @ 18% ( Normal rate ) from the due date of return shall be levied .
8. Manner to calculate interest for late filing of GSTR-3B : Interest for late filing in case of a taxpayer whose turnover is more than Rs. 5 crores , shall be calculated in the following manner:
|Month||Due Date of filing of Return||Actual Date of filing||Delay (in days)||Interest|
|March 2020||20.04.2020||03.05.2020||12||Nil ( Return filed within 15 days)|
|April 2020||20.05.2020||19.06.2020||30 Days||Nil interest for first 15 days+9% p.a. for next 15 days|
|April 2020||20.05.2020||29.06.2020||40 Days||18% p.a. for 40 days|
Thus , it is clear that relief in terms of lower rate of interest and waiver of late fees / Penalty has been granted for late filing of returns but due dates of filing has not been extended for GSTR 1 & GSTR 3B .
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