Reliefs in filing of Form GSTR-1 and GSTR-3B for the tax period February 2020 to June/July 2020

[Kashish Gupta]

Notification No. 51-54/2020 – Central Tax dated June 24, 2020

Title

Lowering of interest rates, waiver of late fees and extension in due date for filing GSTR-3B for the month of August 2020.

Subject

Seeks to provide relief by lowering of interest rate, late fee for a prescribed time for tax periods from February 2020 to June/July 2020 and due date extended for August 2020.

Existing Background

Section 50 of the CGST Act, 2017. Interest on delayed payment of tax:

“(1) Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding 18 per cent., as may be notified by the Government on the recommendations of the Council.”

• Interest rate of 18% p.a. was notified vide Notification No. 13/2017-CT dated 28.06.2017.

• Due to COVID-19, Government had granted relief by conditional lowering of interest for tax period February 2020 to April 2020.

[Notification No. 31/2020-CT dated 03.04.2020].

Section 47 – “Levy of late fee” states that-

1. Any registered person who fails to furnish the details of outward or inward supplies required under section 37 or section 38 or returns required under section 39 or section 45 by the due date shall pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees.

• Late fee of ₹ 50/- per day (₹ 20/- per day in case of Nil returns) was notified vide NN 76/2018-CT dated 31.12.2017 for belated filing of Form GSTR-3B.

• Due to COVID-19, Government had granted relief by conditional lowering of late fee for tax period February 2020 to April 2020 on belated filing of Form GSTR-3B.

[Notification No. 32/2020-CT dated 03.04.2020].

• Late fee of ₹ 50/- per day (₹ 20/- per day in case of Nil returns) was notified vide NN 04/2018-CT dated 23.01.2018 for belated filing of Form GSTR-1.

• Due to COVID-19, Government had granted relief by conditional lowering of late fee for tax period February 2020 to April 2020 on belated filing of Form GSTR-1.

[Notification No. 33/2020-CT dated 03.04.2020].

Amendment

• The Amendment is brought to the supra mentioned Notification No. 13/2017 by way of introducing new unconditional reliefs to the taxpayers  by lowering of interest rate for tax periods February 2020 to July 2020. This substitutes the earlier reliefs granted vide N. No. 31/2020.

• The Amendment is brought to the supra mentioned notification no. 76/2018 by way of introducing new conditional waiver reliefs to the taxpayers  for tax periods February 2020 to July 2020. This substitutes the earlier reliefs granted vide N. No. 32/2020.

• The Amendment is brought to the supra mentioned notification no. 04/2018 by way of introducing new conditional waiver reliefs to the taxpayers  for tax periods February 2020 to June 2020. This substitutes the earlier reliefs granted vide N. No. 33/2020.

Table 1: Reliefs on filing of Form GSTR-1

Aggregate Turnover	Month / Quarter	Due Date	After Relief – Due Date	Interest			Late Fee Penalty
(1)	(2)	(3)	(4)		(5)	(6)
More than 1.50 Crore in current FY or previous FY	March 2020	11.04.2020	10.07.2020[1]	Not applicable			No late fee penalty if returns have been  furnished on or before dates mentioned in column (4)
	April 2020	11.05.2020	24.07.2020[2]
	May 2020	11.06.2020	28.07.2020[3]
	June 2020	11.07.2020	05.08.2020
Less than or equal to 1.50 Crore in current FY or previous FY	January 2020 – March 2020	30.06.2020	17.07.2020[4]
	April 2020 – June 2020		03.08.2020

Table 2: Reliefs on filing of Form GSTR-3B

Aggregate Turnover	Month / Quarter	Due Date		After Relief – Due Date		Interest	Late Fee Penalty
(1)	(2)	(3)		(4)		(5)	(6)
More than 5 Crore in preceding FY	February 2020	20.03.2020		24.06.2020		Nil upto 15 days from due date mentioned in column (3) 9% till 24.06.2020 18% after 24.06.2020	No late fee penalty if returns have been furnished on or before 24.06.2020.
	March 2020	20.04.2020
	April 2020	20.05.2020
	May 2020	27.06.2020		--		No Relief	No Relief
	June 2020	20.07.2020		--		No Relief	No Relief
	July 2020	20.08.2020		--		No Relief	No Relief
	August 2020	20.09.2020		--		No Relief	No Relief
	September 2020	20.10.2020		--		No Relief	No Relief
For taxpayers having an aggregate turnover of UP TO RUPEES 5 CRORES  in the preceding financial year, whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep
Upto 5 Crore in preceding FY	February 2020	22.03.2020		30.06.2020[5]		Nil upto 30.06.2020 9% from 01.07.2020 to 30.09.2020	No late fee penalty if returns have been furnished on or before 30.06.20205.
	March 2020	22.04.2020		03.07.2020[6]		Nil upto 03.07.2020 9% from 04.07.2020 to 30.09.2020	No late fee penalty if returns have been furnished on or before 03.07.20206.
	April 2020	22.05.2020		06.07.2020[7]		Nil upto 06.07.2020 9% from 07.07.2020 to 30.09.2020	No late fee penalty if returns have been furnished on or before 06.07.20207.
	May 2020	12.06.2020		12.09.2020		Nil upto 12.09.2020 9% from 13.09.2020 to 30.09.2020	No late fee penalty if returns have been furnished on or before 12.09.2020.
	June 2020	22.07.2020		23.09.2020		Nil upto 23.09.2020 9% from 24.09.2020 to 30.09.2020	No late fee penalty if returns have been furnished on or before 23.09.2020.
	July 2020	22.08.2020		27.09.2020		Nil upto 27.09.2020 9% from 28.09.2020 to 30.09.2020	No late fee penalty if returns have been furnished on or before 27.09.2020.
	August 2020	01.10.2020		--		No Relief	No Relief
	September 2020	22.10.2020		--		No Relief	No Relief
For taxpayers having an aggregate turnover of UP TO RUPEES 5 CRORES in the preceding financial year, whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi.
Upto 5 Crore in preceding FY	February 2020	24.03.2020	30.06.2020[8]		Nil upto 30.06.2020 9% from 01.07.2020 to 30.09.2020			No late fee penalty if returns have been furnished on or before 30.06.20208.
	March 2020	24.04.2020	05.07.2020[9]		Nil upto 05.07.2020 9% from 06.07.2020 to 30.09.2020			No late fee penalty if returns have been furnished on or before 05.07.20209.
	April 2020	24.05.2020	09.07.2020[10]		Nil upto 09.07.2020 9% from 10.07.2020 to 30.09.2020			No late fee penalty if returns have been furnished on or before 09.07.202010.
	May 2020	14.07.2020	15.09.2020		Nil upto 15.09.2020 9% from 16.09.2020 to 30.09.2020			No late fee penalty if returns have been furnished on or before 15.09.2020.
	June 2020	24.07.2020	25.09.2020		Nil upto 25.09.2020 9% from 26.09.2020 to 30.09.2020			No late fee penalty if returns have been furnished on or before 25.09.2020.
	July 2020	24.08.2020	29.09.2020		Nil upto 29.09.2020 9% for 30.09.2020			No late fee penalty if returns have been furnished on or before 29.09.2020.
	August 2020	03.10.2020	--		No Relief			No Relief
	Sept 2020	22.10.2020	--		No Relief			No Relief

Manner of calculation of interest for taxpayers having aggregate turnover above ₹ 5 Cr.

• 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 till 24.06.2020 is notified. After the specified date, normal rate of interest i.e. 18% per annum shall be charged for any further period of delay in furnishing of the returns.

• The calculation of interest in respect of this class of registered persons for delayed filing of return for the month of March, 2020 (due date of filing being 20.04.2020) is as illustrated in the Table below:

Table 3: Calculation of Interest

Sl. No.	Date of filing GSTR-3B	No. of days of delay	Interest
1	02.05.2020	12	Zero interest
2	20.05.2020	30	Zero interest for 15 days, thereafter interest rate @9% p.a. for 15 days
3	20.06.2020	61	Zero interest for 15 days, thereafter interest rate @9% p.a. for 46 days
4	24.06.2020	65	Zero interest for 15 days, thereafter interest rate @9% p.a. for 50 days
5	30.06.2020	71	Zero interest for 15 days, thereafter interest rate @9% p.a. for 50 days and interest rate @18% p.a. for 6 days

Manner of calculation of interest for taxpayers having aggregate turnover below ₹ 5 Cr.

• The notification provides NIL rate of interest till specified dates and after the specified dates, lower rate of 9% would apply till 30th September 2020. After 30th September, 2020, normal rate of interest i.e. 18% per annum shall be charged for any further period of delay in furnishing of the returns.

• The calculation of interest in respect of this class of registered persons for delayed filing of return for the month of March, 2020 (for registered persons for whom the due date of filing was 22.04.2020) and June, 2020 (for registered persons for whom the due date of filing is 22.07.2020) is as illustrated in the Table below:

Table 4: Calculation of Interest

Tax period	Applicable rate of interest	Date of filing GSTR-3B	No. of days of delay	Interest
March, 2020 [Due date 22.04. 2020]	Nil till 03.07.2020, and 9% thereafter till 30.09.2020	22.06.2020	61	Zero interest
		22.09.2020	153	Zero interest for 72 days, thereafter interest rate @9% p.a. for 81 days
		22.10.2020	183	Zero interest for 72 days, thereafter interest rate @9% p.a. for 89 days and interest rate @18% p.a. for 22 days
June, 2020 [Due date 22.07. 2020]	Nil till 23.09.2020 and 9% till 30.09.2020	28.08.2020	37	Zero interest
		28.09.2020	68	Zero interest for 63 days, thereafter interest rate @9% p.a. for 5 days
		28.10.2020	98	Zero interest for 63 days, thereafter interest rate @9% p.a. for 7 days and interest rate @18% p.a. for 28 days

Late fee

• It is clarified that the waiver of late fee is conditional to filing the return of the said tax period by the dates specified in the said notification. 

• In case the returns in FORM GSTR-3B for the said months are not furnished on or before the dates specified in the said notification, then late fee shall be payable from the due date of return, till the date on which the return is filed.

[Circular No. 141/11/2020-GST dated 24.06.2020]

Concluding Remarks

• Concessional rates of interest are applicable irrespective of date of filing of return. These are unconditional.

• Late fee on delayed filing of Form GSTR-3B is conditional. If returns are filed beyond the prescribed dates, then late fee shall be applicable.

• In respect of Form GSTR-3B, the reliefs have been extended till tax period July 2020.

• In respect of Form GSTR-1, the reliefs have been extended till tax period June 2020.

 

[1] Earlier the date was 30.06.2020

[2] Earlier the date was 30.06.2020

[3] Earlier the date was 30.06.2020

[4] Earlier the date was 30.06.2020

[5] Earlier, it was 29.06.2020 for assessee’s having aggregate turnover more than 1.50 crore and upto ₹ 5 crores

[6] Earlier, it was 29.06.2020 for assessee’s having aggregate turnover more than 1.50 crore and upto ₹ 5 crores

[7]Earlier, it was 30.06.2020 for assessee’s having aggregate turnover more than 1.50 crore and upto ₹ 5 crore

[8] Earlier, it was 29.06.2020 for assessee’s having aggregate turnover more than 1.50 crore and upto ₹ 5 crores

[9] Earlier, it was 29.06.2020 for assessee’s having aggregate turnover more than 1.50 crore and upto ₹ 5 crores & 03.07.2020 for assessee’s having aggregate turnover of upto ₹ 1.50 crores

[10] Earlier, it was 30.06.2020 for assessee’s having aggregate turnover more than 1.50 crore and upto ₹ 5 crores & 06.07.2020 for assessee’s having aggregate turnover of upto ₹ 1.50 crores

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1. CA Kashish Gupta, HOD Litigation, M/s SS Kothari Mehta & Co

2. CA Swati Goyal, Executive, M/s SS Kothari Mehta & Co