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Relief Measures in view of COVID-19 outbreak

Article Dated 4th April, 2020

 

Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020

  • An enabling section 168A has been inserted in the CGST Act, 2017 empowering the Government to extend due dates for various compliances inter-alia including statement of outward supplies, filing refund claims, filing appeals, etc. specified, prescribed or notified under the Act, on recommendations of the GST Council. 
  • The section 168A(1) provides for extending the time limits prescribed in the CGST Act, 2017 in respect of actions which cannot be completed or complied with due to force majeure. This power shall also be exercisable retrospectively.
  • Explanation: For the purpose of this section, “force majeure” means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or otherwise affecting the implementation of any of the provision of this Act.
  • Last date of furnishing of the Central Excise returns due in March, April and May 2020 extended to 30th June,2020.
  • Wherever the last date for filing of appeal, refund applications etc., under the Central Excise is from 20th March to 29th June 2020, the same extended to 30th June 2020.
  • Wherever the last date for filing of appeal, refund applications etc., under Customs s from 20th March to 29th June 2020, the same extended to 30th June 2020
  • Wherever the last date for filing of appeal etc., relating to Service Tax is from 20th March to 29th June 2020, the same extended to 30th June 2020
  • The date for making payment to avail of the benefit under Sabka Vishwas Legal Dispute Resolution Scheme 2019 extended to 30th June 2020.

Relaxation in opting for composition scheme

Notification No. 30/2020 – Central Tax dated 3rd April 2020

Taxpayers opting for the Composition Scheme for the financial year 2020-21 allowed to file their option in FORM CMP-02 till 30th June 2020

Relaxation in application of rule 36(4) of CGST Rules, 2020

Notification No. 30/2020 – Central Tax dated 3rd April 2020

Application of the condition in rule 36(4) for the months of February 2020 to August 2020 allowed to be applied on cumulative basis

The said condition shall not apply to input tax credit availed by the registered persons in the returns in FORM GSTR 3 B 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 - 3 B 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)

Relaxations in filing of GSTR-3B

Notifications No 31/2020 – Central Tax dated 3rd April 2020 (Effective w.e.f 20th March 2020)

Relaxations in filing of GSTR-3B for the tax periods of February 2020 to April 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 Relaxation in filing GSTR-3B

Class of registered person

Rate of interest

Tax period

Condition

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% thereafter

Feb, 2020, March 2020, April, 2020

If return in FORM GSTR-3B is furnished on or before the 24th June, 2020

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

 

April, 2020

If return in FORM GSTR-3B is furnished on or before the 29th June, 2020

If return in FORM GSTR-3B is furnished on or before the 30th June, 2020

Taxpayers having an aggregate turnover of up to rupees 1.5 crores in the preceding financial year

Nil

February, 2020

 

March 2020

 

April, 2020

If return in FORM GSTR-3B is furnished on or before the 30th June, 2020

If return in FORM GSTR-3B is furnished on or before the 3rd July, 2020

If return in FORM GSTR-3B is furnished on or before the 6th July, 2020

Circular No. 136/06/2020-GST dated 3rd April, 2020

What if a taxpayer does not furnish GSTR-3B before the due dates mentioned in the notification?

In case the return for the said months are not furnished on or before the dates 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. In addition, regular late fee shall also be leviable for such delay along with liability for penalty.

Waiver of late fee for delay in furnishing returns in FORM GSTR-3B

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 Circular No. 136/06/2020-GST dated 3rd April 2020

Whether due date of furnishing FORM GSTR-3B for the months of February, March and April 2020 has been extended?

The due dates for furnishing FORM GSTR-3B for the months of February, March and April 2020 has not been extended at all

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 pre ceding 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 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

The lower rate of interest and waiver of late fee would be available only if due tax is paid by filing return in FORM GSTR3B by the date(s) as specified in the Notification.

Waiver of Late fees for the filing of GSTR 1

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

Circular No. 136/06/2020-GST dated 3rd April 2020

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

Due Date extension for the filing of Form GST CMP-08 & GSTR 4

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 July 2020

The said class of taxpayers, as per the notification No. 34/2020- Central Tax dated 03.04.2020, have been allowed, to—

  • 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
  • Furnish the return in FORM GSTR-4 for the financial year 2019-20 by 15.07.2020

Due Date extension in respect of all compliances

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 March 2020 to the 29th June, to 30th June 2020.

The taxpayers who are required to deduct tax at source under section 51, Input Service Distributors and Non-resident Taxable persons- 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 June 2020.
In terms of notification No.35/2020Central Tax, dated 03.04.2020,Issued under the provisions of 168A of the CGST Act, where the validity of an eway-bill generated under rule 138 of the CGST Rules expires during the period 20th March, 2020 to 15th April, 2020, the validity period of such e-way bill has been extended till 30th April, 2020.

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