CBIC has issued clarification with respect to relief provided to the taxpayers in terms of reduction of interest and waiver of late fees in filing of GSTR-3B for the tax period February 2020 to July 2020.
Background
Owing to COVID-19 pandemic, the Central Government had announced relief in filing of GSTR-3B by granting relaxation in interest and late fees. Circular No. 136/06/2020 dated 03-04-2020 was issued by the CBIC clarifying issues relating to measures announced by the Government providing relief to the taxpayers.
The GST Council in its 40th meeting held on 12th June 2020 had decided to allow further relief to the taxpayers. To bring such reliefs in action, the CBIC issued Notification No. 51/2020, 52/2020, 53/ 2020- Central tax dated 24.06.2020 and similarly Notification No. 05/2020- Integrated Tax & Notification No. 02/2020 UT Tax was also issued on the same date.
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Notification No. |
Subject Matter of Notification |
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51/2020- Central Tax dated 24.06.2020 |
Seeks to provide relief to taxpayers by reducing the interest rate from 18% to 9% p.a. for a specified period. |
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52/2020- Central Tax, dated 24.06.2020 |
Seeks to provide relief to taxpayers by conditional waiver of late fee for delay in furnishing Form- GSTR-3B for a specified period. |
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53/2020- Central Tax dated 24.06.2020 |
Seeks to provide relief to taxpayers by conditional waiver of late fee for delay in furnishing Form GSTR-1 for a specified period. |
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05/2020- Integrated Tax dated 24-06-2020 |
Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February 2020 to July 2020. |
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02/2020- Union Territory Tax dated 24-06-2020 |
Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February 2020 to July 2020. |
The above mentioned notifications have an effect to amend the parent notifications, through which the relief from interest for late payment of GST and late fees for delay in furnishing of Form GSTR-3B/GSTR-1 was provided for the tax periods of February, March and April, 2020. Accordingly, the clarifications issued vide Circular No. 136/06/2020- GST dated 03-04-2020 stand modified.
Now, CBIC has issued clarifications vide Circular No. 141/11/2020 – GST dated 24-06-2020 in respect of various relief measures announced by the Government in concurrence with the above notifications. The following are the clarifications made by CBIC through Circular No. 141/11/2020 as given below along with a comparative study of notification issued earlier:
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Manner of calculation of interest for taxpayers having aggregate turnover above Rs. 5 Crores |
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Notification No. 31/2020 dated 03-04-2020 |
Notification No. 51/2020 dated 24-06-2020 |
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Above clarification has been explained by way of an example in Circular as below:
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Date of Filing GSTR-3B |
No. of days of delay |
Interest payable |
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02th May 2020 |
12 |
Zero Interest |
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20th May 2020 |
30 |
Nil interest for first 15 days, thereafter 9% p.a. interest for remaining 15 days |
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20th June 2020 |
61 |
Nil interest for first 15 days, thereafter 9% p.a. interest for remaining 46 days |
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24th June 2020 |
65 |
Nil interest for first 15 days, thereafter 9% p.a. for remaining 50 days |
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30th June 2020 |
71 |
Nil interest for first 15 days, then 9% p.a. interest for 50 days and 18% p.a. interest for remaining 6 days |
Similar relaxation has also been announced for the taxpayers having an aggregate turnover up to Rs. 5 Crores. Such relaxation is as below:-
- CBIC has notified specified dates of filing GSTR-3B for small taxpayers having aggregate turnover up to Rs. 5 Crores for the tax period Feb. 20 to July 20 vide Notification No. 52/2020 dated 24.06.2020.
- Interest at ‘Nil’ rate shall be charged if the return is filed on or before such specified dates. Thereafter, interest shall be charged @ 9% p.a. till 30th September 2020.
- Similar relaxed rate of interest has also been prescribed for tax periods of May, June, July 2020.
- Thus, ‘Nil’ rate of interest till specified dates and thereafter interest @ 9% p.a. till 30th September 2020 and 18% p.a. thereafter shall be charged for delay in furnishing returns.
Above clarification has been explained by way of an example in Circular as below:
Suppose, For Return Period “March 2020”, Specified date of filing GSTR-3B is 3rd July 2020
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Date of Filing GSTR-3B for March |
No. of days of delay |
Interest payable |
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22-06-2020 |
61 |
“Nil” Interest till 3rd July 2020 |
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22-09-2020 |
153 |
“Nil” interest for 72 days up to 3rd July, then 9% p.a. interest for remaining 81 days |
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22-10-2020 |
183 |
“Nil” interest for 72 days up to 3rd July, then 9% p.a. interest for 80 days till 30th September, thereafter 18% p.a. interest for 22 days |
For Return Period “June 2020”, Specified date of filing GSTR-3B is 23rd Sep. 2020
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Date of Filing GSTR-3B for March |
No. of days of delay |
Interest payable |
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28-08-2020 |
37 |
“Nil” Interest |
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28-09-2020 |
68 |
“Nil” interest for 63 days up to 23rd sep. and 9% p.a. thereafter for 5 days |
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28-10-2020 |
98 |
“Nil” interest for 63 days till 23rd sep., then 9% p.a. for 7 days till 30th sep. and 18% p.a thereafter for 28 days. |
Manner of calculation of late fee:-
• Vide Notification No. 32/2020- Central Tax dated 03-04-2020, a conditional waiver of the late fee was provided fir tax period of Feb. 20 to April 20, if the return in Form GSTR-3B was filed by the date specified in the said notification. The same was clarified through Circular No. 136/06/2020 dated 03-04-2020.
• The Government vide Notification No. 52/2020- Central tax dated 24.06.2020 has provided the revised dates for conditional waiver of late fee for the months of February, March and April 2020 and extended the same for the months of May, June and July 2020 for the small taxpayers.
• It is clarified that the waiver of late fee is conditional to filing of the GSTR-3B by the dates specified in the said notification.
• In case the return in FORM GSTR-3B for the said months are not furnished on or before the dates specified in the said notification, then the late fees shall be payable from the due date of return, till the date on which the return is filed.
Please refer the circular at:- https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_141_11_2020.pdf
