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:-‑

Sl. No. Class of registered persons Rate of interest Tax period Condition
(1) (2) (3) (4) (5)
1. Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year Nil for first 15 days from the due date, and 9 per cent thereafter February, 2020,      March 2020,       April, 2020 If     return   in FORM GSTR-3B is furnished on or before the 24th day of June, 2020

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 .

The Author can be approached at caanitabhadra@gmail.com.

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14 Comments

  1. mahesh kumar says:

    what due date for GSTR 3B filing for March 20 (turnover less than 5 cr) ? Is it 30 th June or 3rdJuly 20?. Govt. notification confusing due to 24th June 20 plus 15 days interest free.

  2. vijaykumar says:

    what is the status of cancel gst no as one time facility for revocation of cancel gst no what is procedure of revocation and after revocation by the tax officer dealer could file return without any fees

  3. SANTOSH KHATAVKAR says:

    Madam,
    Kindly guide me for interest to be charged on net liability to pay Govt or Gross liability declared in GSTR 3B.

  4. P G SUBRAMANIAN says:

    Does this mean that assessees whose turnover is less than 5 crores will not be penalised even if they file returns late? In the present situation it is most likely that return filing will be delayed . MSME sector which is on the verge of collapse will be affected badly if penalty is imposed on them. Why cannot the Government clarify things properly instead of leaving things?

    1. Stan Alvares says:

      The Governments notification on GST and even Loan moratorium are terribly misleading and not in tune with current conditions. It betrays their hidden inability to handle the situation.

    1. Anita Bhadra says:

      No changes in existing due dates.
      In case taxpayer with an aggregate turnover of more than 5 crores files, his 3B return after 15 days of due dates – interest @ 9% shall be levied

  5. Yogesh says:

    I think the presentation of due dates and extended due dates are not very easy to understand. So please give in such a way that people can understand.

    1. MAYANK says:

      This presentation is not correct, as it didnt cover Feb 2020 due dates for more than 5cr asseseees. Nd also Due dates of GSTR-1 is also extended please read the notification again.

      1. Anita Bhadra says:

        The due date for Feb 2020 for 3B was 20th March 2020. As per notification 31/2020 – for turnover more than 5 crores, interest will be NIL for 15 days from the DUE DATE ( 5th April 2020),

        As per notification 35/2020, – due dates for all the returns for which due date is 30th June 2020 fall between 20th day of March 2020 to the 29th day of June 2020 BUT such extension of time SHALL NOT BE applicable for compliances under sec 37, 39 etc

      2. Punjab Tayade says:

        When there is a lockdown in the country and we are not allowed to attend the office , how we can file GSTR1 in time Due date of the same is for march 11.4.2020 and we have lockdown till 14th April 2020.
        The Govt itsel has announced the lockdown and at the same time wants us to file returns in time.

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