CBIC Clarification in respect of various measures announced by the Government for providing relief to the GST taxpayers in view of spread of Novel Corona Virus (COVID-19) vide Circular No. 136/06/2020-GST dated 3rd April, 2020.

Summary of various Notifications:

Conditional waiver of GSTR-3B late fees and interest:

Sl. No. (1) Class of registered persons
(2)
Rate of interest (3) Tax period
(4)
Condition (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
2 Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees five crores in the preceding financial year Nil February, 2020,     March,
2020
If     return   in FORM GSTR-3B is furnished on or before the 29th day of June, 2020
April, 2020 If return in FORM GSTR-3B is furnished on or before the 30th day of June, 2020
3. Taxpayers having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year Nil February, 2020 If     return   in FORM GSTR-3B is furnished on or before the 30th day of June, 2020
Math, 2020 If return in FORM GSTR-3B is furnished on or before the 3rd day of July, 2020
April, 2020 If return in FORM GSTR-3B is furnished on or before the 6th day of July, 2020.”.

That means if not filled within these due date you will not be eligible for any waiver of interest or late fees. All normal interest and late fees will be applicable from original due dates.

NIL rate of interest for first 15 days after the due date of filing return in FORM GSTR-3B and reduced rate of interest @ 9% thereafter has been notified for those registered persons whose aggregate turnover in the preceding financial year is above Rs. 5 Crore. For those registered persons having turnover up to Rs. 5 Crore in the preceding financial year, NIL rate of interest has also been notified. The reduced rate of interest is subject to the condition that the registered person must furnish the returns in FORM GSTR-3B on or before 24th day of June, 2020

S. No. Date of filing GSTR-3B No. of days of delay Whether condition for reduced interest is fulfilled? Interest
1 02.05.2020 11 Yes Zero interest
2 20.05.2020 30 Yes Zero interest for 15 days + interest rate @9% p.a. for 15 days
3 20.06.2020 61 Yes Zero interest for 15 days + interest rate @9% p.a. for 46 days
4 24.06.2020 65 Yes Zero interest for 15 days + interest rate @9% p.a. for 50 days
5 30.06.2020 71 NO Interest rate @18% p.a. for 71 days (i.e. no benefit of reduced interest)

GST Composition Scheme for FY 2020-21 can be opted till 30.06.2020

Condition imposed

“Provided that any registered person who opts to pay tax under section 10 for the financial year 2020-21 shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, on or before 30th day of June, 2020 and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 up to the 31st day of July, 2020.”

Clarification

(i) furnish the statement of details of payment of self-assessed tax in FORM GST CMP-08 for the quarter January to March, 2020 by 07.07.2020; and

(ii) furnish the return in FORM GSTR-4 for the financial year 2019-20 by 15.07.2020.

2. In addition to the above, taxpayers opting for the composition scheme for the financial year 2020-21, have been allowed, as per the notification No. 30/2020- Central Tax, dated 03.04.2020, to,-

(i) file an intimation in FORM GST CMP-02 by 30.06.2020; and

(ii) furnish the statement in FORM GST ITC-03 till 31.07.2020

Deferment of 10% ITC rule

In the said rules, in sub-rule (4) of rule 36, the following proviso shall be inserted, namely:‑

“Provided that the said condition shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.”

First understand Rule 36(4)

Rule 36(4) – “Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed [10 percent] of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.”

Rule 36(4) explained: In simple words rule says Input Tax Credit to be availed Related to invoices/Debit Notes not appearing in 2A Shall not exceed 10 % of eligible credit uploaded by supplier.

Condition under rule 36(4) shall not apply to input tax credit availed by the registered persons in the returns in FORM GSTR-3B for the months of February, March, April, May, June, July and August, 2020, but that the said condition shall apply cumulatively for the said period and that the return in FORM GSTR-3B for the tax period of September, 2020 shall be furnished with cumulative adjustment of input tax credit for the said months in accordance with the condition under rule 36(4).

Conditional waiver of late fee for delay in furnishing FORM GSTR-1

The amount of late fee payable under section 47 of the said Act shall stand waived for the months of March, 2020, April, 2020 and May, 2020, and for the quarter ending 31st March, 2020, for the registered persons 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.

That means if taxpayer fails to file on or before 30th June, 2020 then normal late fees will be applicable from original due dates.

Due date to furnish CMP-08 & GSTR-4 extended for March Quarter

“Provided that the said persons shall furnish a statement, containing the details of payment of self-assessed tax in FORM GST CMP-08 of the Central Goods and Services Tax Rules, 2017, for the quarter ending 31st March, 2020, till the 7th day of July, 2020.”

Provided that the said persons shall furnish the return in FORM GSTR-4 of the Central Goods and Services Tax Rules, 2017, for the financial year ending 31st Math, 2020, till the 15th day of July, 2020.”

So late fees & interest is applicable if not filled by these due date as above said.

CBIC extends Due date of GST compliance & validity of e-way bills:

(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 —

(a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above; or

(b) filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the Acts stated above;

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);

(d) section 68, in so far as a-way bill is concerned; and

(e) rules made under the provisions specified at clause (a) to (d) above;

E-Way Bill

(ii) where an a-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020.

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