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. 136/06/2020-GST

CBEC-20/06/04-2020 -GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

New Delhi, dated the 3rd April, 2020

To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)

Madam/Sir,

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) – Reg.

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.

  1. Government has issued following notifications in order to provide relief to the taxpayers:
S.noNotificationRemarks
1.Notification No. 30/2020- Central Tax, dated 03.04.2020Amendment 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 03.04.2020A 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 03.04.2020Notification 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.
  1. 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.
IssueClarification
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 selfassessed 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.NoDate of filing GSTR-3BNo. of days of delayWhether condition
for reduced interest is fulfilled?
Interest
102.05.202011yes Zero interest
2.20.05.202030yes Zero interest for 15 days + interest rate @9% p.a. for 15 days
3.20.06.202061Yes Zero interest for 15 days +
interest rate @9% p.a. for
46 days
4.24.06.202065Yes Zero interest for 15 days +
interest rate @9% p.a. for
50 days
5.30.06.202071NO 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.
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 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.
  1. It is requested that suitable trade notices may be issued to publicize the contents of this circular.

Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.

(Yogendra Garg)
Principal Commissioner
y.garg@nic.in


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