1. In view of the outbreak of Covid-19 , the Government has come up with few Notifications on 24th June 2020, for extending the various due dates for filing GSTR -3B return. CBIC vide Circular No. 141/11/2020 – GST dated 24th June 2020 has clarified the manner of calculation of interest for delay in filing of GSTR 3B.
2. In this article, an attempt has been made to further clarify the manner of calculation with the help of illustrations.
3. Illustration No 1 : Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY
Mr A has tax liability of Rs 1, 00,000 every month from Feb 2020 to July 2020 and he will file GSTR 3B on 30th September 2020. The interest payable for delayed filing of GSTR 3B will be calculated in the following manner:-
| 1a | Specified Date | 24th June 2020 ( Refer Note 1) | |||||
| 1b | Date of filing GSTR 3B | 30th September 2020 | |||||
| 1c | Tax Liability | Rs 1,00,000 | |||||
| 2a | Tax Period | Feb 2020 | Mar 2020 | April 2020 | May 2020 | Jun 2020 | Jul 2020 |
| 2b | Due Dates | 20th Mar 2020 | 20th Apr 2020 | 20th May 2020 | 27th Jun 2020
(Note 3) |
20th July 2020 | 20th Aug 2020 |
| 2c | Dates till Nil interest payable
( 15 days from due date) |
4th April 2020 |
5th May 2020 |
4th June 2020 |
NA |
NA |
NA |
| 2d | No. of days till Intt @ 9% Payable
(1a- 2c) |
81
Apr-26 May-31 Jun-24 |
50
May-26 Jun-24 |
20
Jun-20 |
NA | NA | NA |
| 2e | Interest amount
(1c*2d*9%/365) |
1997 |
1233 |
493 |
NA |
NA |
NA |
| 2f | No of days for which intt @ 18% is payable .(1a-1b)
(Note 2) |
98
Jun-06 Jul-31 Aug-31 Sep-30 |
98
Jun-06 Jul-31 Aug-31 Sep-30
|
98
Jun-06 Jul-31 Aug-31 Sep-30 |
95
Jun-03 Jul-31 Aug-31 Sep-30 |
72
Jul-11 Aug-31 Sep-30 |
41
Aug-11 Sep-30 |
| 2g | Interest amount
(1c*2f*18%/365) |
4833 | 4833 | 4833 | 4684 | 3551 | 2022 |
| 3 | Total Intt
(2e+2g) |
6830 | 6066 | 5326 | 4684 | 3551 | 2022 |
3.1 Note 1 : The CBIC vide notification No. Notification No. 31/2020- Central Tax, dated 03.04.2020 clarified that a NIL interest for first 15 days after the due date of filing return in FORM GSTR-3B and @ 9% thereafter is notified for those registered persons having aggregate turnover above Rs. 5 Crore for the tax periods of February 2020 to April 2020.
3.2 This lower rate of interest shall be subject to condition that due tax is paid by filing return in FORM GSTR-3B by the date(s) as specified in the Notification and the specified date – 24th day of June, 2020.
4. Note 2 The CBIC vide circular no. 141/11/2020-GST dated 24.06.2020 has amended the earlier clarification. According to the amended circular – after the specified date, normal rate of interest i.e. 18% per annum shall be charged for any further period of delay in furnishing of the returns.
4.1 Earlier clarification circular no 136 indicated that if taxpayer fails to file return by the specified date ie 24.06.2020 , intt @ 18% shall be charged from the due date of filing the return.
5. Note 3 : CBIC extends due date for for furnishing FORM GSTR-3B for supply made in the month of May, 2020 vide Notification No. 36/2020- Central Tax, dated 03.04.2020. The extended due date for the registered person having an aggregate turnover above Rupees 5 Crore in the previous financial year is 27th June 2020.
6. Illustration 2 – Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY – (Group A)
| 1a | Specified Date | |
| 1b | Date of filing GSTR 3B | 30th September 2020 |
| 1c | Tax Liability | Rs 1,00,000 |
–
| 2a | Tax Period | Feb 2020 | Mar 2020 | April 2020 | May 2020 | Jun 2020 | Jul 2020 |
| 2b | Due Dates | 22 Mar 2020 | 22 Apr
2020 |
22 May 2020 | 12 July 2020
(Note 4) |
22 July 2020 | 22 Aug 2020 |
| 2c | Specified dates from interest payable @ 9% (Note 5) |
30 June 2020 |
3 July 2020 |
6 July 2020 |
12 Sep 2020 |
23 Sep 2020 |
27 Sep 2020 |
| 2d | No. of days for which Intt @ 9% Payable
(1b- 2c) |
92
Jul -31 Aug-31 Sep-30 |
89
Jul -28 Aug-31 Sep-30
|
86
Jul -25 Aug-31 Sep-30
|
18
Sep-30
|
7
Sep-30
|
3
Sep-30
|
| 2e | Interest amount
(1c*2d*9%/365) |
2268 |
2195 |
2121 |
443 |
172 |
74 |
7. Note 4 : CBIC extends due date for for furnishing FORM GSTR-3B for supply made in the month of May, 2020 vide Notification No. 36/2020- Central Tax, dated 03.04.2020. The extended due date for the registered person in State A having an aggregate turnover upto Rupees 5 Crore in the previous financial year is 12th July 2020.
7.1 Group A States – 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.
8 Note 5 The CBIC vide Notification No. 52/2020- Central Tax, dated 24-06-2020 clarified that Interest for taxpayers with turnover upto 5 crores in preceeding year will be calculated for delay in filing of GSTR-3B returns as under for the months of Feb 2020 to July 2020
(a) TILL the specified dates at Sl No. 2 of the notification , interest will be NIL
(b) After specified dates till 30-09-2020 interest will be charged @ 9% p.a.
(c ) After 30-09-2020 interest will be charged @ 18% p.a.
9. Illustration 3 – Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY – (Group B)
| 1a | Specified Date | |
| 1b | Date of filing GSTR 3B | 30th September 2020 |
| 1c | Tax Liability | Rs 1,00,000 |
–
| 2a | Tax Period | Feb 2020 | Mar 2020 | April 2020 | May 2020 | Jun 2020 | Jul 2020 |
| 2b | Due Dates | 24 Mar
2020 |
24 Apr
2020 |
24May 2020 | 14 July 2020
(Note 6) |
24 July 2020 | 24 Aug 2020 |
| 2c | Dates from interest payable @ 9% (Note 5) |
30 June 2020 |
5 July 2020 |
9 July 2020 |
15 Sep 2020 |
25 Sep 2020 |
29 Sep 2020 |
| 2d | No. of days till Intt @ 9% Payable
(1b- 2c) |
92
Jul -31 Aug-31 Sep-30 |
87
Jul -26 Aug-31 Sep-30 |
83
Jul -26 Aug-31 Sep-30 |
15
Sep-30 |
5
Sep-30 |
1
Sep-30 |
| 2e | Interest amount
(1c*2d*9%/365) |
2268 |
2145 |
2047 |
370 |
123 |
25 |
9.1 Note 6 CBIC extends due date for for furnishing FORM GSTR-3B for supply made in the month of May, 2020 vide Notification No. 36/2020- Central Tax, dated 03.04.2020. The extended due date for the registered person in State B having an aggregate turnover upto Rupees 5 Crore in the previous financial year is 14th July 2020.
9.2 Group B States- 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.
10. Further , as per notification no. 57/2020-Central Tax,dated 30-06-2020, if the taxpayer who fail to furnish the return for the period of February 2020 to July 2020 ,but furnish the said return till 30th September 2020 the the late fees will be capped to Rs 500 (i.e Rs 250 CGST and Rs 250 SGST) per return.
10.1 In case the tax payable is nil for the period covered above the late fees shall stand fully waived for those taxpayers.
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