GST Return and Compliance (Clarifications by CBIC)

Posted by CA Pankaj Kumar Vats
On 4 Apr 2020

Here in this article, we will discuss the relaxations and extensions given by the Govt of India to the GST Taxpayers. A clear understanding is necessary to avoid any late fee or interest. So let us understand(Circular No. 136/06/2020-GST):-

Benefit to the Taxpayer who wants to opt for Composition Scheme

The very first benefit is given to the small taxpayers, who wants to opt for the composition scheme. The date to opt for composition scheme has been extended to 30th June, 2020 for the Financial Year 2020-2021. So now the tax payer can file CMP – 02 till 30th June, 2020.

The limitation of provisional input U/s 36(4) i.e. 110% of Input can be claimed have been further relaxed for the months of Feb 2020 to Aug 2020 in the return for tax period of Sept, 2020.

Benefit of Lower rate of Interest

This benefit can be categorized in two parts:-
Taxpayer having turnover upto 5 crore : Nil Rate of Interest
Taxpayer having turnover above 5 crore : Nil for the First 15 days after the due date of return in Form GSR 3B and 9% thereafter

This lower rate of interest is subject to the condition that due tax is paid by filing return in Form GSTR 3B by the date specified in the notification. And the Specified date as per the notification is 24th June, 2020

Benefit of Waiver of Late fee of GSTR 3B

Late fee on account of delayed filing of GSTR 3B has been waived off for the tax period Feb, 2020 to April, 2020 if the return in Form GSTR 3B is filed by the date specified in the notification.  And the specified date is 30th June, 2020

Benefit of Waiver of Late fee of GSTR 1

Late fee on account of delayed filing of GSTR 1 has been waived off for the tax periods March 2020 to May 2020 and for Quarter ending on 31st March, 2020 if the same are furnished on or before 30th June 2020

Extension of due date for Composition Tax Payers

Due date for filing of CMP -08 for quarter ending 31st March, 2020  has been  extended to 7th July, 2020

Due date for filing of GSTR 4 for the financial year 2019-20 has been extended to 15th July, 2020

Benefit to All

Notification under section 168A of CGST Act for extending due date of compliance which falls during the period from the 20th day of March, 2020 to the 29th day of June, to 30th day of June, 2020.

FAQ’s

Question 1 : Is the date of filing of Return, GSTR 3B has been extended ?
Answer : No

Question 2 : What is the date, which is relevant to save interest as per the notification.
Answer : 24th June, 2020

Question 3 : Form GST CMP 02 can be filed till ?
Answer : 30th June, 2020

Question 4 : What is the due date for Form ITC 03?
Answer : 31st July, 2020

Question 5 : Is the due date for filing of GSTR 3B has been extended?
Answer : No, only late fee have been waived off and that too is subject to conditions

Question 6 : What if the tax is not paid, is the reduced interest will be applicable?
Answer : If the tax is not paid within the dates specified, interest @ 18% per annum will be charged from the due date of return till the actual date of filing of return in Form GSTR 3B

Question 7 : Whether restriction under rule 36(4) of the CGST Rules would apply during the lockdown period?
Answer : No, but the condition under rule 36(4) has to be cumulatively adjusted of input tax credit  for the tax period Feb 2020 to Aug 2020 in Sept 2020.

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