Circular No. 136/06/2020-GST [C10-4RC]

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. Notification Remarks No.

1. Notification No. Amendment in the CGST Rules so as to allow taxpayers opting 30/2020- Central for the Composition Scheme for the financial year 2020-21 to Tax, dated file their option in FORM CMP-02 till 30th June, 2020 and to 03.04.2020 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. A lower rate of interest of NIL for first 15 days after the due 31/2020- Central date of filing return in FORM GSTR-3B and @ 9% thereafter Tax, dated is notified for those registered persons having aggregate 03.04.2020 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.

Circular No. 136/06/2020-GST

3. Notification No. Notification under section 128 of CGST Act for waiver of late 32/2020- Central fee for delay in furnishing returns in FORM GSTR-3B for the Tax, dated tax periods of February, 2020 to April, 2020 provided the return 03.04.2020 in FORM GSTR-3B by the date as specified in the Notification.

4. Notification No. Notification under section 128 of CGST Act for waiver of late 33/2020- Central fee for delay in furnishing the statement of outward supplies in Tax, dated FORM GSTR-1 for taxpayers for the tax periods March, 2020 03.04.2020 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. Extension of due date of furnishing statement, containing the 34/2020- Central details of payment of self-assessed tax in FORM GST CMP- Tax, dated 08 for the quarter ending 31st March, 2020 till the 7th day of July, 03.04.2020 2020 and filing FORM GSTR-4 for the financial year ending 31st March, 2020 till the 15th day of July, 2020.

6. Notification No. Notification under section 168A of CGST Act for extending due 35/2020- Central date of compliance which falls during the period from the 20th Tax, dated day of March, 2020 to the 29th day of June, to 30th day of June, 03.04.2020 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. Issue Clarification No.

1. What are the 1. The said class of taxpayers, as per the notification No. measures that have 34/2020- Central Tax, dated 03.04.2020, have been allowed, been specifically to,- taken for taxpayers (i) furnish the statement of details of payment of self- who have opted to assessed tax in FORM GST CMP-08 for the quarter pay tax under section January to March, 2020 by 07.07.2020; and

10 the CGST Act or (ii) furnish the return in FORM GSTR-4 for the financial those availing the year 2019-20 by 15.07.2020. option to pay tax 2. In addition to the above, taxpayers opting for the under the composition scheme for the financial year 2020-21, have notification No. been allowed, as per the notification No. 30/2020- Central 02/2019– Central Tax, dated 03.04.2020, to,- Tax (Rate), dated the (i) file an intimation in FORM GST CMP-02 by 7th March, 2019? 30.06.2020; and

(ii) furnish the statement in FORM GST ITC-03 till 31.07.2020.

2. Whether due date of 1. The due dates for furnishing FORM GSTR-3B for the furnishing FORM months of February, March and April, 2020 has not been GSTR-3B for the extended through any of the notifications referred in para 2 months of February, above. March and April, 2. However, as per notification No. 31/2020- Central Tax, 2020 has been dated 03.04.2020, NIL rate of interest for first 15 days after extended ? the due date of filing return in FORM GSTR-3B and reduced

Circular No. 136/06/2020-GST

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 1. As clarified at sl.no. (2) above, the due date for furnishing conditions attached the return remains unchanged; i.e. 20th day of the month for availing the succeeding such month. The rate of interest has been notified reduced rate of as Nil for first 15 days from the due date, and 9 per cent per interest for the annum thereafter, for the said months. months of February, 2. The reduced rate of interest is subject to the condition that March and April, the registered person must furnish the returns in FORM 2020, for a registered GSTR-3B on or before 24th day of June, 2020. person whose 3. In case the returns in FORM GSTR-3B for the said aggregate turnover months are not furnished on or before 24th day of June, 2020 in the preceding then interest at 18% per annum shall be payable from the due financial year is date of return, till the date on which the return is filed. In above Rs. 5 Crore? addition, regular late fee shall also be leviable for such delay along with liability for penalty.

4. How to calculate the 1. As explained above, the rate of interest has been notified interest for late as Nil for first 15 days from the due date, and 9 per cent per payment of tax for annum thereafter, for the said months. The same can be the months of explained through an illustration. February, March Illustration:- Calculation of interest for delayed filing of and April, 2020 for a return for the month of March, 2020 (due date of filing being registered person 20.04.2020) may be illustrated as per the below Table: whose aggregate S. Date of No. of Whether Interest turnover in No. filing days condition preceding financial GSTR-3B of for reduced year is above Rs. 5 delay interest is Crore? fulfilled?

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

Circular No. 136/06/2020-GST

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 1. As clarified at sl.no. (2) above, the due date for furnishing conditions attached the return remains unchanged. The rate of interest has been for availing the NIL notified as Nil for the said months. rate of interest for 2. The conditions for availing the NIL rate of interest is that the months of the registered person must furnish the returns in FORM February, March GSTR-3B on or before the date as mentioned in the and April, 2020, for a notification No. 31/2020- Central Tax, dated 03.04.2020. registered person 3. In case the return for the said months are not furnished on whose aggregate or before the date mentioned in the notification then interest turnover in at 18% per annum shall be charged from the due date of preceding financial return, till the date on which the return is filed as year is up to Rs. 5 explained in the illustration at sl.no (4) above, against entry Crore? 5. In addition, regular late fee shall also be leviable for such delay along with liability for penalty.

6. Whether the due Under the provisions of section 128 of the CGST Act, in date of furnishing the terms of notification No. 33/2020- Central Tax, dated statement of outward 03.04.2020, late fee leviable under section 47 has been supplies in FORM waived for delay in furnishing the statement of outward GSTR-1 under supplies in FORM GSTR-1 under Section 37, for the tax section 37 has been periods March, 2020, April 2020, May, 2020 and quarter extended for the ending 31st March 2020 if the same are furnished on or before months of February, the 30th day of June, 2020. March and April 2020?

7. Whether restriction Vide notification No. 30/2020- Central Tax, dated under rule 36(4) of 03.04.2020, a proviso has been inserted in CGST Rules 2017 the CGST Rules to provide that the said condition shall not apply to input tax would apply during credit availed by the registered persons in the returns in the lockdown FORM GSTR-3B for the months of February, March, April, period? 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 In terms of notification No. 35/2020- Central Tax, dated status of e-way bills 03.04.2020,Issued under the provisions of 168A of the CGST which have expired Act, where the validity of an e-way bill generated under rule

Circular No. 136/06/2020-GST

during the lockdown 138 of the CGST Rules expires during the period 20th day period? 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 Under the provisions of section 168A of the CGST Act, in measures that have terms of notification No. 35/2020- Central Tax, dated been specifically 03.04.2020, the said class of taxpayers have been allowed to taken for taxpayers furnish the respective returns specified in sub-sections (3), who are required to (4) and (5) of section 39 of the said Act, for the months of deduct tax at source March, 2020 to May, 2020 on or before the 30th day of June, under section 51, 2020. Input Service Distributors and Non-resident Taxable persons?

10. What are the Under the provisions of section 168A of the CGST Act, in measures that have terms of notification No. 35/2020- Central Tax, dated been specifically 03.04.2020, the said class of taxpayers have been allowed to taken for taxpayers furnish the statement specified in section 52, for the months who are required to of March, 2020 to May, 2020 on or before the 30th day of collect tax at source June, 2020. under section 52?

11. The time limit for Vide notification No. 35/2020- Central Tax, dated compliance of some 03.04.2020, issued under the provisions of 168A of the CGST of the provisions of Act, except for few provisions covered in exclusion clause, the CGST Act is any time limit for completion or compliance of any action falling during the which falls during the period from the 20th day of March, lock-down period 2020 to the 29th day of June, 2020, and where completion or announced by the compliance of such action has not been made within such Government. What time, has been extended to 30th day of June, 2020. should the taxpayer do?

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.