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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)

Commerce Insiders April 14, 2020 1
In the emergent situation due and challenges faced by taxpayers in meeting the compliance requirements under various provisions of the Central Goods and Services Tax Act, 2017. The government has announced various relief measures relating to statutory and regulatory compliance matters across sectors. 
In order to ensure uniformity in the implementation of the provisions of the law across the country, the Government clarifies each of these issues as under:-

Issue no.1:- What are the measures that have been specifically taken for taxpayers who have opted to pay tax under Composition Scheme (registered under Section 10 or Notification no 02/2019) ?
Clarification:- They 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
  • Furnish the return in FORM GSTR-4 for the financial year 2019-20 by 15.07.2020. 
  • Taxpayers opting for the composition scheme for the financial year 2020-21, have been allowed to

Issue no.2:- Whether the due date of furnishing FORM GSTR-3B for the months of February, March and April 2020 has been extended? 

Clarification:
  • No, the due dates for furnishing FORM GSTR-3B for the months of February, March and April, 2020 has not been extended
  • However, the NIL rate of interest for the 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, the NIL rate of interest has been notified.
  • The 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 the 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. (Notification No 31/2020 & 32/2020)

Issue no.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? 


Clarification:
  • As clarified at issue no (2) above, the due date for furnishing the return remains unchanged; i.e. 20th day of the month succeeding such month. 
  • he rate of interest has been notified as Nil for first 15 days from the due date, and 9% per annum thereafter, for the said months. 
  • 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. 
  • In case the returns in FORM GSTR-3B for the said months are not furnished on or before the 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, a regular late fee shall also be leviable for such delay along with liability for penalty

Issue no.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 the preceding financial year is above Rs. 5 Crore?


Clarification:
  • As explained above, the rate of interest has been notified as Nil for the first 15 days from the due date, and 9% 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:-

Serial No.

Date of Filling GSTR-3B

No. of days of delay

Whether condition for reduced interest is fulfilled?


Interest
1.
02.05.2020
11
Yes
Nil
2.
20.05.2020
30
Yes
Nil for 15 days + at 9% per annum for 15 days.
3.
20.06.2020
61
Yes
Nil for 15 days + at 9% per annum for 46 days.
4.
24.06.2020
65
Yes
Nil for 15 days + at 9% per annum for 50 days.
5.
30.06.2020
71
No
Interest at a rate of 18% per annum for 71 days. No benefit.

Issue no.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? 
Clarification:
  • 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). 
  • In case the return for the said months is 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, a regular late fee shall also be leviable for such delay along with liability for penalty

Issue no.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? 

Clarification:
  • Late fee leviable under section 47 has been waived for the 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 is furnished on or before the 30th day of June, 2020.
  • For legal reference Notification No. 33/2020- Central Tax, dated 03.04.2020, 

Issue no.7:- Whether restriction under rule 36(4) of the CGST Rules would apply during the lockdown period? 

Clarification:
  • The restriction 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 the input tax credit for the said months in accordance with the condition under rule 36(4).
  • For the legal reference refer Notification no 30/2020


Issue no.8:- What will be the status of e-way bills that have expired during the lockdown period?

Clarification: 
  • 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 an e-way bill has been extended till the 30th day of April 2020.
  • For legal reference refer Notification No. 35/2020- Central Tax, dated 03.04.2020


Issue no.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? 

Clarification: 
  • They 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.
  • For legal reference refer Notification No. 35/2020- Central Tax, dated 03.04.2020
Issue no.10:- What are the measures that have been specifically taken for taxpayers who are required to collect tax at source under section 52?

Clarification:  

Issue no.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? 

Clarification: 
  • 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 the 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.

[Source: CBIC]

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[Disclaimer:-This article is being furnished for informational purposes only. We make every effort to use reliable & comprehensive information, but we do not represent that the contents of the article are accurate or complete.]


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