The Central Board of Indirect Taxes and Customs (CBIC) has issued notifications and circular under GST Laws to implement the relief measures due to outbreak of Covid-19 and Nationwide lockdown. The relief includes relaxation from interest, late fees for filing of GSTR 1 and GSTR 3B. Summary of the notifications and circular is presented in lucid manner for easy understanding-

1. Notification No – 51/2020-Central Tax dated 24-06-2020, Notification 52/2020 – Central Tax dated 24th June 2020 and Circular No 141/11/2020-GST dated 24th June, 2020 – Notification of due date for furnishing Form GSTR 3B Return for the month of Feb to July 2020 and circular clarifying interest and late fees on filing of GSTR 3B 

S. No Turnover Tax Period Interest Late Fees
1 Taxpayers having an aggregate turnover of more than rupees 5 crores in the Previous FY Feb’20, Mar’20 and Apr’20 First 15 Days from Due date – NIL

From 16th day to 24th June – 9%

On or after 24th June – 18%

No late fees if filed by 24th June 20
2 Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees five crores in the previous financial year, whose principal place of business is in the States of 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 Feb’20 Nil till 30th June, 2020 No late fees if returns filed within dates given in preceding column
Mar’20 Nil till 3rd July, 2020
April’ 20 Nil till 6th July, 2020
May’ 20 Nil till 12th September, 2020
June’ 20 Nil till 23rd September, 2020
July’ 20 Nil till 27th September, 2020
Note – No interest till the above given dates and 9% Interest after the given due date till the 30th Sep 20
3 Taxpayers having an aggregate turnover of more than rupees 1.5 crores and up to rupees five crores in the previous financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi Feb’20 Nil till 30th June, 2020 No late fees if returns filed within dates given in preceding column
Mar’20 Nil till 5th July, 2020
April’ 20 Nil till 9th July, 2020
May’ 20 Nil till 15th September, 2020
June’ 20 Nil till 25th September,2020
July’ 20 Nil till 29th September, 2020
Note – No interest till the above given dates and 9% Interest after the given due date till the 30th Sep 20

2. Notification No – 54/2020-Central Tax dated 24-06-2020 – Notification of due date for furnishing Form GSTR 3B Return for the month of August 2020 –

S. No Turnover Tax Period Due date
1 Taxpayers having an aggregate turnover of upto rupees five crores in the previous financial year, whose principal place of business is in the States of 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 August’ 20 1st October’ 20
2 Taxpayers having an aggregate turnover of upto rupees five crores in the previous financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi August’ 20 3rd October’ 20

3. Notification No – 53/2020-Central Tax dated 24-06-2020 – Waiver of late fees for delay in Filing of 1

The late fee payable, shall stand waived for the registered persons who fail to furnish the details of outward supplies for the months or quarter mentioned in column (2) of the Table below in FORM GSTR-1 by the due date, but furnishes the said details on or before the dates mentioned in column (3)

S. No

(1)

Month/ Quarter

(2)

Due dates

(3)

1 March 2020 10th July 2020
2 April 24th July 2020
3 May 2020 28th July 2020
4 June 2020 5th August 2020
5 Jan to Mar 2020 17th July 2020
6 Apr to June 2020 3rd August 2020

4. Relaxation to the late fees for the registered person who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to January, 2020 – Notification 52/2020 – Central Tax dated 24th June 2020

As announced in 40th GST Council meeting the late fees has been waived 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 01st July, 2020 to 30th September, 2020 –

S. No Return Period Tax Payable Maximum Late fees
1 July 2017 to January 2020 Other than NIL Return Maximum late fees of Rs 250 each under CGST and SGST/UTGST per return period
2 July 2017 to January 2020 NIL Return No late fees

5. Clarification in respect of various measures announced by the Government for providing relief to the taxpayers in view of spread of Novel Corona Virus (COVID-19) –Circular No 141/11/2020-GST dated 24th June, 2020

  • Manner of calculation of interest for taxpayers having aggregate turnover above Rs. 5 Cr. –

It was clarified vide Circular No. 136/06/2020-GST, dated 03.04.2020 (para 3, sl. No. 3, 4 and 5) that in case the return for the months of February, March and April 20 are not furnished on or before the date mentioned in the notification No.31/2020- Central Tax, dated 03.04.2020, interest at 18% per annum shall be charged from the due date of return, till the date on which the return is filed.

Now, the said condition has been removed by the Government, vide notification no 51/2020- Central Tax, dated 24.06.2020. Now, a lower rate of interest of NIL for first 15 days after the due date of filing return in FORM GSTR-3B and @ 9% thereafter till 24.06.2020 is notified. 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

Illustration: Calculation of interest for delayed filing of return for the month of March, 2020 (due date of filing being 20.04.2020) may be illustrated as per the below Table:

Sl. No Actual date of filing GSTR 3B Delay in Days Interest Applicable Liability

(in Rs)

Interest to be paid (Year = 360 days)
1 02.05.2020 12 No Interest Rs 1,00,000 NIL
2 20.05.2020 30 No Int for first 15 days

Then 9% p.a.  for next 15 days

Rs 1,00,000 Rs 375 (for 15 days) @ 9% p.a.
3 20.06.2020 61 No Int for first 15 days

Then 9% p.a.  for next 46 days

Rs 1,00,000 Rs 1,225 (for 46 days) @ 9% p.a.
4 24.06.2020 65 No Int for first 15 days

Then 9% p.a.  for next 50 days

Rs 1,00,000 Rs 1,250 (for 50 days) @ 9% p.a.
5 30.06.2020 71 No Int for first 15 days,

Then 9% p.a.  next 50 days

And 18% p.a. for next 6 days

Rs 1,00,000 Rs 1,550 (9% for 50 days and 18% for 6 days)
  • Manner of calculation of interest for taxpayers having aggregate turnover below Rs. 5 Cr. –

The notification provides NIL rate of interest till specified dates and after the specified dates lower rate of 9% would apply till 30th September 2020. After 30th September, 2020, normal rate of interest i.e. 18% per annum shall be charged for any further period of delay in furnishing of the returns.
Example – The calculation of interest in respect of this class of registered persons for delayed filing of return for the month of March, 2020 (for registered persons for whom the due date of filing was 22.04.2020)

Sl. No Actual date of filing GSTR 3B Delay in Days Interest Applicable Liability

(in Rs)

Interest to be paid (Year = 360 days)
1 22.06.2020 61 No Interest Rs 1,00,000 NIL
2 22.09.2020 153 No Int for 72 days

Then 9% p.a. for 81 days

Rs 1,00,000 Rs 2,025 (for 81 days) @ 9% p.a.
3 22.10.2020 183 No Int for first 72 days, Then 9% p.a.  for  89 days, 18% p.a. for 22 days Rs 1,00,000 Rs 3,325 (9% for 89 days and 18% for 22 days)
  • Condition for waiver of late fees –

The Circular No 141/11/2020-GST dated 24th June, 2020  has clarified that the waiver of late fee is conditional to filing the return of the said tax period by the dates specified in the said notification.

In case the returns in FORM GSTR3B for the said months are not furnished on or before the dates specified in the said notification, then late fee shall be payable from the due date of return, till the date on which the return is filed

6. Notification No – 50/2020-Central Tax dated 24-06-2020 – Introduction of CGST (Seventh Amendment) Rules, 2020 – Rate of tax for Composition Scheme – 

S. No Section under which composition levy is opted Category of registered persons Rate of Tax
1 Sub-sections (1) and (2) of section 10 Manufacturers, other than manufacturers of such goods as may be notified by the Government Half per cent. of the turnover in the State or Union territory
2 Sub-sections (1) and (2) of section 10 Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II Two and a half per cent. of the turnover in the State or Union territory
3 Sub-sections (1) and (2) of section 10 Any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 Half per cent. of the turnover of taxable supplies of goods and services in the State or Union territory
4 Sub-section (2A) of section 10 Registered persons not eligible under the composition levy under subsections (1) and (2), but eligible to opt to pay tax under sub-section (2A), of section 10 Three per cent of the turnover of taxable supplies of goods and services in the State or Union territory.’’.

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