Extension of due dates for statutory and regulatory compliances in view of COVID-19 outbreak -

This is to update you that the CBIC has released a series of Notifications providing extension of several statutory and regulatory due dates in the wake of COVID-19 outbreak. We have summarized below the key pointers basis the Notifications issued:

1.     Rationalization of rate of interest and late fee for filing of Form GSTR 3B for tax periods February 2020 to April 2020 [Notification no. 31/2020 and Notification no. 32/2020 – Central Tax dated April 03, 2020 have been issued seeking to provide relief by lowering of interest rates and conditional waiver of late fee for delay in filing of Form GSTR-3B]

For ease of reference, we have tabulated below the due dates, applicable rate of interest and late fee along with conditions attached w.r.t. filing of Form GSTR 3B within specified timelines:

Aggregate Turnover in preceding FY	Rate of Interest	Late Fee	Tax periods covered	Form GSTR 3B to be filed by
More than INR 5 Crore	Nil for first 15 days from the due date, and 9% p.a. thereafter (please note that due date for GSTR3B in this regard, continues to be 20th of the succeeding month)	Nil	February 2020 to April, 2020	June 24, 2020
INR 1.5 crore - 5 Crores	Nil	Nil	February 2020 to March 2020	June 29, 2020
			April 2020	June 30, 2020
Less than INR 1.5 Crores	Nil	Nil	February 2020	June 30, 2020
			March 2020	July 03, 2020
			April 2020	July 06, 2020

Note - Under GST, the payment of taxes can be said to have been made only upon filing of return (i.e. off-setting of liability while filing Form GSTR-3B). Therefore, in case the benefit of interest has to be availed, the filing of the return in Form GSTR 3B (while discharging the liability through off-setting) has to be made within the stipulated deadlines. Also, interest (if leviable) shall be applicable till the date when the return in Form GSTR 3B is filed off-setting the liability for the corresponding tax periods.

        To summarize, for taxpayers with a turnover exceeding INR 5 crores per annum in the preceding Financial Year:   

     

Tax Period	Payment of taxes and filing of Form GSTR 3B to be done by (Due Date + 15 days grace)	Remarks
February, 2020	April 04, 2020	·         If taxes are paid and Form GSTR 3B is filed within 4th / 5th - No interest applicable ·         If taxes are paid and Form GSTR 3B is filed post 4th / 5th but before June 24, 2020 - 9% interest p.a. to apply ·         If taxes are paid and Form GSTR 3B is filed after June 24, 2020 – 18% interest to be applicable from the original due date i.e. no benefit of reduced rate [Circular No. – 136/06/2020 – GST)
March, 2020	May 05, 2020
April, 2020	June 04, 2020

                                     

The above notifications shall deemed to have been made effective from March 20, 2020.

2.     Extension of due date for filing Form GSTR 3B for May 2020

Notification No. 36/2020 – Central Tax has been issued seeking to extend the due date for furnishing of Form GSTR-3B for the month of May, 2020 as follows:

Aggregate Turnover in preceding FY	Due Date	States covered
More than INR 5 Crore	June 27, 2020	All states
Up-to INR 5 crore	July 12, 2020	Principal place of business in the 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 Nicobar Islands or Lakshadweep
	July 14, 2020	Principal place of business 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, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or  Delhi

3.     Waiver of late for filing of Form GSTR-1 for the period March 2020 to May 2020 [Notification No 33, 2020 – Central Tax dated April 03, 2020 seeks to provide waiver of late fee for delay in furnishing Form GSTR-1 for the period March 2020 to May 2020]

Vide the above Notification, the amount of late fee payable under section 47 of the CGST Act, 2017 for delay in filing Form GSTR-1 for the months of March, 2020 to May 2020 and for the quarter ending March 31, 2020 has been waived subject to the condition that the FORM GSTR-1 in respect of such tax periods is filed on or before the June 30, 2020.

4.     Cumulative applicability of Rule 36(4) [Notification No 30, 2020 – Central Tax dated April 03, 2020 has been issued to allow cumulative application of condition as specified in Rule 36(4) of CGST Rules, 2017 with respect to input tax credit reconciliation]

-       Rule 36(4) inserted vide Notification No. 49/2019 dated October 09, 2019, had restricted Input Tax Credit availment to 110% (effective January 01, 2020) of the matched credit available in Form GSTR 2A.

-       Vide the current Notification, it has been provided that the said condition shall apply cumulatively for the tax periods February 2020 to August 2020 and the return in Form GSTR-3B for the tax period September, 2020 shall be furnished with such cumulative adjustment of input tax credit for the said months in accordance with the condition above.

The above notification shall deemed to have been made effective from 20 March 2020.

5.     Extension of due dates for compliances [Notification No. 35/2020 – Central Tax dated April 03, 2020 has been issued to extend the due dates for various compliances which falls during the period from March 20, 2020 to June 29, 2020 till June 30, 2020 and to extend the validity of e-waybills expiring between March 20, 2020 to April 15, 2020]

-       Extension of time limit for completion or compliance of various actions  which falls during the period between March 20, 2020 to June 29, 2020.  The time limit for completion of such action, has been extended up to June 30, 2020.  These include --

(a) 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, by whatever name called, under the provisions of the Acts  stated above; or

(b) 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 Acts stated above.

However, such extension of time shall not be applicable for the compliances of the provisions of the said Act, as mentioned below-

·         Chapter IV of CGST Act, 2017, i.e. computation of time and value of supply

·         Sub-section (3) of Section 10 i.e. lapsing of composition option on crossing of the relevant threshold limit

·         Section 25 i.e. requirement of mandatory registration

·         Section 27 i.e. provisions relating to registration of casual taxable person and non-resident taxable person

·         Section 31 i.e. provisions relating to issuance of tax invoices

·         Section 37 i.e. furnishing of outward supplies – Please refer note below

·         Section 47 i.e. levy of late fee on delay on filing Form GSTR-1 etc.– Please refer note below

·         Section 50 i.e. levy of interest on delayed payment of tax – Please refer note below

·         Section 69 i.e. provisions relating to power to arrest

·         Section 90 i.e. provisions relating to liability of partners to pay tax

·         Section 122 i.e. liability of penalty for certain offences

·         Section 129 i.e. detention seizure and release of goods and conveyances in transit

·         Section 39, except sub-section (3), (4) and (5) i.e. furnishing of returns – Please refer note below

·         Section 68, in so far as e-way bill is concerned

·         Rules made under the provisions specified above

Note – Although the above relaxations have excluded the compliances relating to filing of Form GSTR-1 / Form GSTR-3B, levy of late fee, levy of interest on delayed payment etc., however separate Notifications (as mentioned in point 1,2 and 3 above) have been released seeking to extend the due dates, waiving/ reducing interest / late fee on fulfilment of the conditions specified therein. We would request you to refer to the Notifications above for such relaxations

-       Extension in the validity of an e-waybill

Where an e-way bill has been generated under Rule 138 of the CGST Rules, 2017 and its period of validity expires during the period March 20, 2020 to April 15, 2020, the validity period of such e-way bill shall be deemed to have been extended till the April 30, 2020.