Analysis of Relief Measures provided under GST Law due to COVID-19 outbreak

CBIC has in view of the emergent situations being faced by taxpayers on account of corona virus outbreak issued various relief measures relating to statutory and regulatory compliance matters under various provisions of GST Law. A brief analysis of the Notifications 30/2020 to 36/2020 dated 03.04.2020 are summarized hereunder:

1. GSTR-3B– Relief from Interest payable on delay payment of tax and Waiverof Late feepayable on delay in filing of return under Section 47 of CGST/SGST Act

S.No

Tax period

Relief / Waiver from Interest& Late Fees

 

Date on or before which return has to be filed to avail therelief/ waiver*

Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year

1.       

Feb-20

Interest

From due date (20.03.2020) to 04.04.2020 =Nil

From 05.04.2020 to 24.06.2020 = @9%

Late Fee -Waived off

24.06.2020

2.       

Mar-20

Interest

From due date (20.04.2020) to 05.05.2020 =Nil

From 06.05.2020 24.06.2020 = @ 9%

Late Fee -Waived off

24.06.2020

3.       

Apr-20

Interest

From due date (20.05.2020) to 04.06.2020 =Nil

From 05.06.2020 to 24.06.2020 = @ 9%

Late Fee -Waived off

24.06.2020

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

4.       

Feb-20

Interest- Nil and Late Fee -Waived off

29.06.2020

5.       

Mar-20

Interest- Nil and Late Fee -Waived off

29.06.2020

6.       

Apr-20

Interest- Nil and Late Fee -Waived off

30.06.2020

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

7.       

Feb-20

Interest- Nil and Late Fee -Waived off

30.06.2020

8.       

Mar-20

Interest- Nil and Late Fee -Waived off

03.07.2020

9.       

Apr-20

Interest- Nil and Late Fee -Waived off

06.07.2020

* If return is filed after such specified dates – Interest shall be payable @ 18% from due date till date of filing of return and no waiver of late fee shall be available.

2. Extension of Due Date for filing GSTR-3B for the month of May’ 2020

S.No

Tax period

Due Date for filing GSTR-3B

States

Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financial year

1.       

May-20

27.06.2020

All States

Taxpayers having an aggregate turnover of uptorupees 5 crores in the preceding financial year

2.       

May-20

12.07.2020

Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep

3.       

May-20

14.07.2020

Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi

3. GSTR-1 –Waiver from Late fee payable on delay in filing of return under Section 47 of CGST/SGST Act

S.No

Tax period

Waiver from Late Fees

Date on or before which return has to be filed to avail thewaiver*

1.       

Mar-20

Late Fee -Waived off

30.06.2020

2.       

Apr-20

Late Fee -Waived off

30.06.2020

3.       

May-20

Late Fee -Waived off

30.06.2020

4.       

Quarter Ending 31.03.2020

Late Fee -Waived off

30.06.2020

* If return is filed after such specified dates -No waiver of late fee shall be available.

4. Extension of Due Date to 30.06.2020 of following type of returns, which are due during the period from 20.03.2020 to 29.06.2020

  • 39(3) – Return for Tax Deducted at Source u/s 51
  • 39 (4) – Return for Input Service Distributor
  • 39 (5) – Non-Resident Taxable Person

5. E-way Bill– E-way Bills generated whose period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020.

6. Restriction of Input Tax Credit under rule 36(4) for February to August 2020

1. The restriction laid in sub-rule (4) of Rule 36 relating to maximum 10% of eligible ITC that can be claimed by registered person in respect of invoices, debit notes etc. which have not been uploaded by supplier.

2. The said condition shall apply cumulatively for the months of February, March, April, May, June, July and August, 2020 and accordingly, 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).

7. Extension of time limit for certain compliances

i. Where any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under the said Act, 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, then, the time limit for completion or compliance of such action, shall be extended upto the 30th day of June, 2020, including for the purposes of-

  1. The above extension is inclusive of completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal;or
  2. filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, by whatever name called, under the provisions of the CGST, IGST, UTGST Acts.

ii. The above extension however, shall not apply for compliance of following provisions-

a. Chapter IV – pertains to time and value of supply

b. Section 10(3) – Lapse of composition scheme if aggregate turnover exceeds limit

    Section 25 –Procedure for Registration

    Section 27 – Special provisions relating to Casual Taxable Person and Non Resident Taxable Person

    Section 31 – Issue of Invoice

    Section 37 – Furnishing details of outward supplies (GSTR-1)

    Section 47 – Levy of Late Fee

    Section 50 – Interest on delayed payment of tax

    Section 69 – Power to arrest

    Section 90 –Liability of partners of firm to pay tax

    Section 122–Penalty for certain offences

    Section 129– Detention, seizure and release of goods and conveyances in transit

c. Section 39 – Furnishing of returns, except returns under:

      1. S. 39(3) – Return for Tax Deducted at Source u/s 51
      2. S. 39 (4) – Return for Input Service Distributor
      3. S. 39 (5) – Non-Resident Taxable Person

d. Section 68 in so far as e-way bill is concerned- Inspection of goods in movement

e. Rules made under the provisions specified at clause (a) to (d) above

8. Specific clarification for measures taken for taxpayers who are required to collect tax at source under section 52

The said class of taxpayers has 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.

9. Extension of time limits under composition scheme

i. A registered person opting to pay tax under composition levy (section 10) for the financial year 2020-21 shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, on or before 30th June, 2020 and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 upto the 31st July, 2020.

ii. Due date to furnish statement of self-assessed tax by composition dealer in Form CMP-08 for the quarter ending 31st March, 2020, is extended to 07.07.2020.

iii. Due date to furnish return in Form GSTR-4 Financial Year ending 31st March, 2020, is extended to 15.07.2020.

 

-Team ALA Legal

Please find the PDF Document attached here as “Relief Measures under GST Law_COVID Outbreak

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