Composition Scheme Option till 30 June, 2020
· ITC Conditions under 36(4) only in Sept
2020 Return
· 10% Limit on Invoices not Uploaded by
Supplier
· Interest
cut to Zero for 15 days and 9% thereafter for Small Units below Rs. 5
crs
· CMP-08 and GSTR-4 Extending
· Clarification on Sec. 10 – 02/2019 dated
07.03.2019
· GSTR-3B Submission Date remains same
· Reduced Interest Rate only on Timely
Submission of Return by 24 June 2020
· Interest Calculation Formula
· Conditions for Nil Rate of Interest
· Late Fee for GSTR-1 Waived
· 10% Limit on ITC to Apply only in Sept
2020
· Validity period of Expired E-way Bill
Extended till 30 April 2020
· TDS Return Extended to 30 June 2020
· One Time Extension of Compliance Date to
30 June 2020
[Circular
No. 136/06/2020-GST dated 3rd April 2020]
Subject: 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).
The
spread of Novel Corona Virus (COVID-19) across many countries of the world,
including India, has caused immense loss to the lives of people and resultantly
impacted the trade and industry. In view of the emergent situation and
challenges faced by taxpayers in meeting the compliance requirements under
various provisions of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the “CGST Act”), Government has announced various relief
measures relating to statutory and regulatory compliance matters across
sectors.
2.
Government has issued following notifications in order to provide relief to the
taxpayers:
|
S.
No. |
Notification |
Remarks |
|
1. |
Notification
No. 30/2020- Central Tax, dated 03.04.2020 |
Amendment
in the CGST Rules so as to allow taxpayers opting for the Composition Scheme
for the financial year 2020-21 to file their option in FORM CMP-02 till
30th June, 2020 and to allow cumulative application of the condition in rule
36(4) for the months of February, 2020 to August, 2020 in the return for tax
period of September, 2020. |
|
2. |
Notification
No. 31/2020- Central Tax, dated 03.04.2020 |
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 is notified for those registered
persons having aggregate turnover above Rs. 5 Crore and NIL rate of interest
is notified for those registered persons having aggregate turnover below Rs.
5 Crore in the preceding financial year, for the tax periods of February,
2020 to April, 2020. 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. |
|
3. |
Notification
No. 32/2020- Central Tax, dated 03.04.2020 |
Notification
under section 128 of CGST Act for waiver of late fee for delay in furnishing
returns in FORM GSTR-3B for the tax periods of February, 2020 to
April, 2020 provided the return in FORM GSTR-3B by the date as specified in
the Notification. |
|
4. |
Notification
No. 33/2020- Central Tax, dated 03.04.2020 |
Notification
under section 128 of CGST Act for waiver of late fee for delay in furnishing
the statement of outward supplies in FORM GSTR-1 for taxpayers for the
tax periods March, 2020 to May, 2020 and for quarter ending 31st March 2020
if the same are furnished on or before 30th day of June, 2020. |
|
5. |
Notification
No. 34/2020- Central Tax, dated 03.04.2020 |
Extension
of due date of furnishing statement, containing the details of payment of
self-assessed tax in FORM GST CMP- 08 for the quarter ending
31st March, 2020 till the 7th day of July, 2020 and filing FORM GSTR-4 for
the financial year ending 31st March, 2020 till the 15th day of July, 2020. |
|
6. |
Notification
No. 35/2020- Central Tax, dated 03.04.2020 |
Notification
under section 168A of CGST Act for extending due date of compliance which
falls during the period from the 20th day of March, 2020 to the 29th day of
June, to 30th day of June, 2020. |
3.
Various
issues relating to above mentioned notifications have been examined. In order
to ensure uniformity in the implementation of the provisions of the law across
the field formations, the Board, in exercise of its powers conferred under
section 168(1) of the CGST Act hereby clarifies each of these issues as under:-
|
S.
No. |
Issue |
Clarification |
|||||
|
1. |
What
are the measures that have been
specifically taken for taxpayers who have opted to pay tax under
section 10 the CGST Act or those availing the option to pay tax
under the notification No. 02/2019– Central Tax (Rate),
dated the 7th March, 2019? |
1.
The said class of taxpayers, as per the notification No. 34/2020- Central
Tax, dated 03.04.2020, have been allowed, to,- (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. |
|||||
|
2. |
Whether
due date of furnishing FORM GSTR-3B for the
months of February, March and April, 2020 has been extended
? |
1.
The due dates for furnishing FORM GSTR-3B for the months of February,
March and April, 2020 has not been extended through any of the notifications
referred in para 2 above. 2.
However, as per notification No. 31/2020- Central Tax, dated 03.04.2020, 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. 3.
Further, vide notification as per the notification No. 32/2020- Central Tax,
dated 03.04.2020, Government has waived the late fees for delay in furnishing
the return in FORM GSTR-3B for the months of February, March and
April, 2020. 4.
The lower rate of interest and waiver of late fee would be available only if
due tax is paid by filing return in FORM GSTR-3B by the date(s) as
specified in the Notification. |
|||||
|
3. |
What
are the conditions attached for availing
the reduced rate of interest for the months of February, March
and April, 2020, for a registered person whose aggregate
turnover in the preceding financial year is above Rs. 5 Crore? |
1.
As clarified at sl.no. (2) above, the due date for furnishing the return
remains unchanged; i.e. 20th day of the month succeeding such month. The rate
of interest has been notified as Nil for first 15 days from the due date, and
9 per cent per annum thereafter, for the said months. |
|||||
|
|
2.
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. |
||||||
|
|
3.
In case the returns in FORM GSTR-3B for the said months are not
furnished on or before 24th day of June, 2020 then interest at 18% per annum
shall be payable from the due date of return, till the date on which the
return is filed. In addition, regular late fee shall also be leviable for
such delay along with liability for penalty. |
||||||
|
4. |
How
to calculate the interest for late payment of tax
for the months of February, March and April, 2020 for a registered
person whose aggregate turnover in preceding financial year is
above Rs. 5 Crore? |
1.
As explained above, the rate of interest has been notified as Nil for first
15 days from the due date, and 9 per cent per annum thereafter, for the said
months. The same can be explained through an illustration. 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: |
|||||
|
|
|
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) |
|
5. |
What
are the conditions attached for availing the NIL rate of interest for the
months of February, March and April, 2020, for a registered person whose
aggregate turnover in preceding financial year is up to Rs. 5
Crore? |
1.
As clarified at sl.no. (2) above, the due date for furnishing the return
remains unchanged. The rate of interest has been notified as Nil for the said
months. |
|||||
|
2.
The conditions for availing the NIL rate of interest is that the registered
person must furnish the returns in FORM GSTR-3B on or before the date
as mentioned in the notification No. 31/2020- Central Tax, dated
03.04.2020. |
|||||||
|
3.
In case the return for the said months are not furnished on or before the
date mentioned in the notification then interest at 18% per annum shall be
charged from the due date of return, till the date on which the return is
filed as explained in the illustration at sl.no (4) above, against entry |
|||||||
|
5.
In addition, regular late fee shall also be leviable for such delay along
with liability for penalty. |
|||||||
|
6. |
Whether
the due date of furnishing the statement of outward supplies
in FORM GSTR-1 under section 37 has been extended for the months of February,
March and April 2020? |
Under
the provisions of section 128 of the CGST Act, in terms of notification No.
33/2020- Central Tax, dated 03.04.2020, late fee leviable under section 47
has been waived for delay in furnishing the statement of outward supplies in FORM
GSTR-1 under Section 37, for the tax periods March, 2020, April 2020,
May, 2020 and quarter ending 31st March 2020 if the same are furnished on or
before the 30th day of June, 2020. |
|||||
|
7. |
Whether
restriction under rule 36(4) of the CGST
Rules would apply during the lockdown period? |
Vide
notification No. 30/2020- Central Tax, dated 03.04.2020, a proviso has been
inserted in CGST Rules 2017 to provide that the said condition 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). |
|||||
|
8. |
What
will be the status of e-way bills which have
expired during the lockdown period? |
In
terms of notification No. 35/2020- Central Tax, dated 03.04.2020,Issued under
the provisions of 168A of the CGST Act, where the validity of an e-way bill
generated under rule 138 of the CGST Rules expires during the period 20th
day of March, 2020 to 15th day of April, 2020, the validity period
of such e-way bill has been extended till the 30th day of April,
2020. |
|||||
|
9. |
What
are the measures that have been specifically taken for
taxpayers who are required to deduct tax at source under section 51, Input
Service Distributors and Non-resident Taxable persons? |
Under
the provisions of section 168A of the CGST Act, in terms of notification No.
35/2020- Central Tax, dated 03.04.2020, the said class of taxpayers have been
allowed to furnish the respective returns specified in sub-sections (3), (4)
and (5) of section 39 of the said Act, for the months of March, 2020 to May,
2020 on or before the 30th day of June, 2020. |
|||||
|
10. |
What
are the measures that have been
specifically taken for taxpayers who are required to collect tax at
source under section 52? |
Under
the provisions of section 168A of the CGST Act, in terms of notification No.
35/2020- Central Tax, dated 03.04.2020, the said class of taxpayers have been
allowed to furnish the statement specified in section 52, for the months of
March, 2020 to May, 2020 on or before the 30th day of June, 2020. |
|||||
|
11. |
The
time limit for compliance of some of the
provisions of the CGST Act is falling during the lock-down period announced
by the Government. What should the taxpayer do? |
Vide
notification No. 35/2020- Central Tax, dated 03.04.2020, issued under the
provisions of 168A of the CGST Act, except for few provisions covered in
exclusion clause, any time limit for completion or compliance of any action
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, has been extended to 30th day of June, 2020. |
|||||
4.
It is requested that suitable trade notices may be issued to publicize the
contents of this circular.
5.
Difficulty, if any, in the implementation of the above instructions may please
be brought to the notice of the Board. Hindi version would follow.
CBEC-20/06/04-2020
–GST