Considering the difficult situation the country is facing due to the pandemic of Covid-19, the Government has announced various relief measures for the trade and industry. One such measure is to provide the trade and industry sufficient time to file the GSTR-1 and GSTR-3B for the period February 2020 to April 2020 without any penal consequences.

The Government vide notification no. 32 and 33/2020-Central Tax dated 03.04.2020 has conditionally waived the late fee leviable for delay in filing of GSTR-1 and GSTR-3B for the period February to April 2020. Further, vide notification no. 31/2020-Central Tax dated 03.04.2020, the Government has conditionally lowered the interest rate for delay in payment of taxes and filing of GSTR-3B. The summary of the notifications with respect to filing of return in Form GSTR-3B is provided below:-

Sl

No.

Class of  registered  person Tax period Due Date Late  Fees Rate of Interest Condition
1 Turnover above  Rs. 5 Crore in  preceding FY February  2020 20/03/2020 Nil Nil – If  return filed  within 15 days from due date.

9% p.a. if return filed  thereafter

GSTR-3B to be  filed on  or before 24/06/2020
March 2020 20/04/2020
April 2020 20/05/2020
2 Turnover between Rs. 1.5  Crore and Rs. Rs. 5 Crore in  preceding FY February 2020 22/03/2020

Or

24/03/2020

Nil Nil GSTR-3B to be  filed on or  before 29/06/2020
March 2020 22/04/2020 Or 24/04/2020 GSTR-3B to be filed on or before

29/06/2020

April 2020 22/05/2020

Or

22/06/2020

GSTR-3B to be

filed on or before

30/06/2020

3 Turnover upto Rs. 1.5 Crore in preceding FY February

2020

22/03/2020 Or

24/03/2020

Nil Nil GSTR-3B to be filed on or before 30/06/2020
March 2020 22/04/2020 Or 24/04/2020 GSTR-3B to be filed on or before 03/07/2020
April 2020 22/05/2020 Or 22/06/2020 GSTR-3B to be  filed on or before  06/07/2020

Further, the Government has waived the late fees for delay in filing of Form GSTR-1 for the period February 2020 to April 2020 on the condition that the said returns should be filed on or before 30/06/2020.

Important points

1. It is relevant to note that the Government in its wisdom has not extended the due date for filing the GSTR-1 and GSTR-3B. However, it has waived the levy of late fees subject to the condition that the GSTR-3B is filed within 24/06/2020 to 06/07/2020 and the GSTR-1 is filed within 30/06/2020.

2. In respect of dealers whose turnover in preceding Financial Year was less than Rs. 5 Crore, there is complete waiver of interest for delay in payment of taxes and filing of GSTR-3B returns.

3. For dealers whose turnover in preceding Financial Year was more than Rs. 5 Crore, there is complete waiver of interest if the GSTR-3B is filed within 15 days from the actual due date. However, if the delay in filing the GSTR-3B is beyond 15 days from the actual due date, then concessional interest at the rate of 9% p.a. will be leviable if the returns are filed on or before 24.06.2020. This can be understood by way of the following illustration:-

Tax period Due Date Actual Date of Filing Interest
February 2020 20/03/2020 04/04/2020 Nil – As return filed within 15 days from actual date
February 2020 20/03/2020 30/04/2020 Interest at 9% p.a. for the period 05/04/2020 to 30/04/2020
February 2020 20/03/2020 30/06/2020 Interest at 18% p.a. for the period 21/03/2020 to 30/06/2020. Since the condition of filing the return within 24/06/2020 has not been satisfied, interest at regular rate of 18% is charged.
March 2020 20/04/2020 05/05/2020 Nil – As return filed within 15 days from actual date
March 2020 20/04/2020 31/05/2020 Interest at 9% p.a. for the period 06/05/2020 to 31/05/2020
March 2020 20/04/2020 30/06/2020 Interest at 18% p.a. for the period 21/04/2020 to 30/06/2020. Since the condition of filing the return within 24/06/2020 has not been satisfied, interest at regular rate of 18% is charged.
April 2020 20/05/2020 04/06/2020 Nil – As return filed within 15 days from actual date
April 2020 20/05/2020 24/06/2020 Interest at 9% p.a. for the period 05/06/2020 to 24/06/2020
April 2020 20/05/2020 30/06/2020 Interest at 18% p.a. for the period 21/05/2020 to 30/06/2020. Since the condition of filing the return within 24/06/2020 has not been satisfied, interest at regular rate of 18% is charged.

E-way bill portal blocked for non-filing of GSTR-3B for two consecutive period

As per Rule 138E of the CGST Rules, where a registered taxpayer has not furnished returns (GST CMP-08, GSTR-3B or GSTR-1) for two consecutive tax periods, the registered taxpayer will not be eligible to raise e-way bill. The e-way bill portal automatically blocks the registered taxpayer from raising e-way bill if he has not furnished the returns for two consecutive tax periods. Considering the current situation, where registered taxpayers may not file the GST returns for February to April 2020 within the due dates, there is a possibility that the e-way bill portal will be blocked by the system. This is because no corresponding amendment has been made in Rule 138E of the CGST Rules. Also, had the Government extended the due date for filing the returns, this issue would not have arisen. However, as the Government has not extended the due date, the system will block the e-way bill portal as soon as the due date for the second month return has expired. It is expected that the Government will suitably modify the system so that the e-way bill portal is not blocked for delay in filing of returns for the period February – April 2020.

Conclusion

The waiver of late fees and interest is conditional. Trade and Industry should note the conditions and ensure that they are satisfied to avail the waiver of late fees and interest.

Author Bio

Qualification: CA in Practice
Company: MSSV & Co
Location: Bangalore, Karnataka, IN
Member Since: 14 Apr 2020 | Total Posts: 1
I am a Chartered Accountant in practice and a partner with MSSV & Co, Chartered Accountant, Bangalore. I am heading in Indirect Tax Division of the firm. View Full Profile

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One Comment

  1. caprateekm says:

    In the Table, due date for return for the period April 2020 may be read as 22.05.2020 or 24.05.2020.
    Also, there is a Tweet by ‘GST Tech’ that the E-way bill generation facility will not be blocked for non-filing of GST returns.

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