GST Due dates Effects is like ‘Kabhi Kushi Kabhi Gham’?

Arjun (Fictional Character): Krishna, some major recommendations were put forth by the GST Council in the 40^th GST Council meeting. What further step has CBIC taken to give effect to the recommendations?

Krishna (Fictional Character): Arjuna, CBIC has issued one GST Instruction, Two IGST Notifications, 6 CGST Notifications and one UTGST Notification on 24th June 2020, to give effect to the recommendations of 40^th GST Council meeting. Let’s study those notifications and clarification in detail. As Many taxpayers are confused due to different slabs, months, late fees, turnover issues and applicability of due dates, its like “ Kabhi Kushi Kabhi Gham”.

Arjun (Fictional Character): Krishna, which notifications are issued and what do they address?

Krishna (Fictional Character): Arjuna, giving effect to the recommendations of 40^th GST Council meeting, following notifications are issued:

• Notification No. 49/2020 (Central Tax): To bring into effect certain provisions of the Finance Act, 2020
• Notification No. 50/2020 (Central Tax): To notify GST rates for Composition Taxable Persons under Rule 7 of CGST Rules.
• Notification No. 51/2020 (Central Tax): Conditional waiver of interest in excess of 9% p.a for registered persons having aggregate turnover upto 5 crores for GSTR 3B for the months of May to July 2020 if filed by specified dates.
• Notification No. 52/2020 (Central Tax): Conditional waiver of late fees for registered persons having aggregate turnover upto 5 crores for GSTR 3B for the months of May to July 2020 if filed by specified dates.
• Notification No. 53/2020 (Central Tax): Conditional waiver of late fees for all registered persons for GSTR 1 for the months/quarters ending March to June 2020 if filed by specified dates

Arjun (Fictional Character): Krishna, what are the extended due dates for furnishing details in GSTR-3B providing relief for GST taxpayers?

Krishna (Fictional Character): Arjuna, the due dates are extended in the following manner:

1. For taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year:

For the period of May 2020 – 27^th June 2020

2. For taxpayers having an aggregate turnover of up to rupees 5 crores in the preceding financial year (whose principal place of business is Maharashtra,) :

For the period of ;

May 2020 – Due date is 12^th September 2020

June 2020 – Due date is 23^rd September 2020

July 2020 – Due date is 27^th September 2020

August 2020 – Due date is 1^st October 2020

Arjun (Fictional Character): Krishna, what is the relief provided for chronic old non-filers of GSTR-3B?

Krishna (Fictional Character): Arjuna, the waiver of late fees for NIL GSTR-3B returns pertaining to July 2017 – January 2020, if furnished the said returns between the period from 01^st July 2020 to 30^th September 2020, has now been notified. Further, the total amount of late fee payable stands waived which is in excess of an amount of Rs.500/- for the registered person who failed to furnish the return in FORM GSTR-3B for the months of July 2017 to January 2020, by the due date but furnishes the said return between the period from 01^st day of July 2020 to 30^th day of September 2020.

Arjun (Fictional Character): Krishna, what should the taxpayer learn from this?

Krishna (Fictional Character): Arjuna, even after issuing these notifications and clarification, a few issues remain unaddressed, such as; if GSTR-3B for the month of February and further periods cannot be filed if GSTR-3B for the month of January is not filed. In such case, a taxpayer cannot avail relief benefits for next months. Also, for taxpayers having turnover above Rs.5 Cr. no concession has been given in the rate of interest for the returns of periods pertaining to May to September, 2020. Looking towards the mess of due dates, a question arises whether it’s a Good and Simple Tax to Comply for.