Updates On Notifications Issued On 24th June 2020

Updates On Notifications Issued On 24th June 2020

To give effect to recommendations of the 40th GST Council meeting conducted in Delhi on 12th June, 2020, the government has notified trade relaxations & applicability of certain sections of the Finance Act, 2020 on 24th June, 2020.

Relaxations For Taxpayers Having Turnover More Than INR 5 Crores In Proceeding Financial Year

  • No further relaxation in terms of the extended time period for filing of GSTR 3B and payment of taxes for the tax period February-May, 2020
  • Levy of late fees and rate of interest remains the same as earlier notified vide Notification No. 31/2020 and 32/2020 Central Tax dated 3rd April 2020 which are as follows:

Tax Period

Notified Date  Rate Of Interest

Late Fees

February-April, 2020 24th June 2020 Nil if filed in first 15 days from the due date & 9% thereafter till notified date Full waiver if returns filed on or before the notified date
May 2020 27th June 2020 Nil if filed on or before the notified date Full waiver if returns filed on or before the notified date
  • Manner of calculation of interest for delayed filing of return for the month of March 2020 (due date of filing being 20th April 2020 and notified date being 24th June 2020) is illustrated below:

Date of filing GSTR 3B

No. of Days (delay)

Interest

2nd May 2020

12

Nil

20th May 2020

30

  • First 15 days –Nil Interest After 2nd May 2020
  • Next 15 days- @9%

30th June 2020

71

  • First 15 days –Nil Interest
  • Till 24th June 2020- 9% for 50 days
  • After 24th June- 18% for 6 days

Relaxations For Taxpayers Having Turnover Up To INR 5 Crores In Proceeding Financial Year

  • The due date for filing of GSTR 3B has been extended for the month of August 2020:
Category I Category II
States of 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 the Nicobar Islands or Lakshadweep 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, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi
To be filed on or before 1st October 2020 To be filed on or before 3rd October 2020
  • Small taxpayers have been provided relief in terms of reduction/waiver of interest and late fees for delayed filing of GSTR 3B and payment of taxes during the tax period February-July, 2020
Tax Period Notified Date (Category I/Category II)  Rate of Interest Late Fees
February 2020 30th June 2020       Nil if filed on or before notified dates & thereafter 9% till 30th September 2020       Full waiver if returns filed on or before the notified date
March 2020 3rd/5th July 2020
April 2020 6th/9th July 2020
May 2020 12th/15th September 2020
June 2020 23rd/25th September 2020
July 2020 27th/29th September 2020
  • Manner of calculation of interest for delayed filing of return for the month of March 2020 (due date of filing being 22nd April 2020 and notified date is 3rd July 2020) is illustrated below:
Date of filing GSTR 3B No. of days (delay) Interest
20th June 2020 59 Nil
30th September 2020 161
  • Till 3rd July, 2020-Nil Interest for 72 days
  • For the next 89 days- @9%
5th October 2020 166
  • Till 3rd July, 2020-Nil Interest for 72 days
  • For the next 89 days- @9%
  • For the next 5 days- 18%
In the case where GSTR 3B is not furnished on or before notified dates, then the late fee shall be payable from the due date of return, till the date return is filed. For instance, if the return for the month of March 2020, the due date of filing being 20th April 2020 is not filed till 24th June 2020 then late fees shall be calculated from 20th April 2020 till the date of filing.

Conditional Waiver Of Late Fees On Non-furnishing Of GSTR 3B

  • Late fees for non -furnishing of GSTR 3B for the tax period July 2017 to January 2020 if furnished between 1st July 2020 to 30th September 2020 has been reduced/waived as under -INR. 500 in case of tax liability

– Complete waiver in case of no tax liability

  • A one-time option has been provided for all non-compliant taxpayers to clean their records by filing returns

Waiver Of Late Fees On Delay In Furnishing GSTR 1 For All Registered Persons

  • Late fees on delayed filing of GSTR 1 shall stand waived if filed on or before notified dates:

Tax Period

If GSTR 1 Furnished on or before

March 2020

10th July 2020

April 2020

24th July 2020

May 2020

28th July 2020

June 2020

5th August 2020

Quarter January-March, 2020

17th July 2020

Quarter April-June, 2020

3rd August 2020

Following Sections Of Finance Act, 2020 Shall Come Into Force From 30th June 2020

  • Inclusion of Dadra and Nagar Haveli and Daman and Diu & Ladakh in the list of Union Territories in (section 118).
  • Power to constitute a bench of Appellate Tribunal extended for Jammu and Kashmir under (section 125).
  • Period of issuing removal of difficulty orders extended to 5 years to 30th June 2020 from earlier 3 years (section 130 and 134).

Amendment to Central Goods & Service Tax Rules, 2017

  • The rules will be called Central Goods and Services Tax (Seventh Amendment) Rules, 2020, and come into force from 01st April 2020.
  • Addition of composition levies on the supply of services @6% in Rule 7 for turnover up to 50 lakhs in the preceding financial year
  • The rules have been amended to bring the rules in sync with the Act. Section 10(2A) has been notified earlier consequent to which the amendments to rules are also done.

Notification and circular wise summary are as under: –

  1. Notification No. 49/2020 Central Tax & 04/2020 Integrated Tax – Notified sections of Finance Act, 2020 that shall come into force from 30th June 2020.
  2. Notification No. 50/2020 Central Tax – Amendment to Central Goods and Service Tax Rules, 2017
  3. Notification No. 51/2020 Central Tax, 02/2020 Union Territory Tax and 05/2020 Integrated Tax – Reduced rate of interest for delay in furnishing GSTR 3B and payment of taxes
  4. Notification No. 52/2020 Central Tax – Waiver of Late fees for delay in furnishing GSTR 3B
  5. Notification No. 53/2020 Central Tax – Waiver of late fees on delay in furnishing GSTR 1 for all registered persons
  6. Notification No. 54/2020 Central Tax – Extension of due date for furnishing GSTR 3B for August 2020 for small taxpayers
  7. Circular No. 141/11/2020-GST– Manner of calculation of interest and late fees. Circular No. 136/06/20-GST, dated 03rd April 2020 issued on clarifications of a manner of calculation of interest shall stand modified to the extent of points mentioned in circular No. 141/11/2020-GST issued on 24th June, 2020

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