July’20: Key Goods & Services Tax (GST) Updates
Central Government notifies the facility of Filing GSTR 3B by SMS
Central Government vide Notification No. 44/ 2020-Central Tax has notified the facility of filing of NIL GSTR 3B by SMS. The effective date for filing of returns through SMS is 8th June 2020. Extension in the time limit for issuance of refund rejection orderCentral Government vide Notification No. 46/ 2020 & 56/ 2020 – Central Tax has extended the time limit for issuance of refund rejection order to the later of fifteen days after the receipt of reply or 31.08.2020. The said relief applies where a notice has been issued for rejection of refund claim (in full or in part) and time limit for issuance of the order falls during the period from the 20.03.2020 to 30.08.2020 due to the prevailing pandemic situation.
Facility to file GST return through EVCThe facility to file GST returns i.e. GSTR-1 and GSTR-3B through EVC mode have been provided to GST registered person who is registered as Company under the provision of Companies Act, 2013 vide Notification No. 48/2020 – Central Tax dated 19.06.2020. This facility to file GSTR 1 is available from 27.05.2020 to 30.09.2020 and GSTR 3B is available from 21.04.2020 to 30.09.2020.
Due date extended for filing of GSTR 3B for August 2020Central Government vide Notification No. 54/ 2020-Central Tax has extended the due date for filing of GSTR 3B for the month of August 2020 for small taxpayers having aggregate turnover of up to rupees five crores in the previous financial year as below:
| Taxpayer State | Tax Period | Due Date |
| 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 | Aug- 2020 | 1st Oct 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 | Aug- 2020 | 3rd Oct 2020 |
Central Government vide Notification No. 55/ 2020-Central Tax has extended the due date for completion of any action or compliance by any GST Authority or any person which falls during the period from the 20.03.2020 to 30.08.2020 to 31.08.2020. These shall include:
- 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;
- Filing of any appeal, reply or application or furnishing of any report, document, return statement, or such other record.
Earlier Central Government vide Circular No. 135/05/2020-GST had clarified that the refund of accumulated Input Tax Credit (ITC) will be available on those invoices which are uploaded by the supplier in FORM GSTR-1 and are reflected in the FORM GSTR-2A of the applicant.
There were some challenges being faced by the trade and industry where the taxpayer is eligible to take ITC on import, reverse charge, or on Input Service Distributor (ISD) invoices but these invoices are not being reflected in the GSTR – 2A.
In light of above, Central Government vide Circular No. 139/09/2020-GST has further clarified that refund of ITC relating to imports, ISD invoices, and the inward supplies liable to Reverse Charge can be processed based on the invoices even if they are not reflected in GSTR – 2A
CBIC clarifies on the manner of calculation of interestVide Circular No. 136/06/2020-GST, dated 03.04.2020, It was clarified that in case the return for Feb-Apr 2020 is not furnished on or before specified due dates, interest @ 18% p.a. shall be charged from the due date of return, till the date on which the return is filed. The Government, vide notification no 51/2020- Central Tax, dated 24.06.2020 has removed the said condition, accordingly, a lower rate of interest of NIL for the first 15 days after the due date of filing FORM GSTR-3B and @ 9% thereafter till 24.06.2020 is notified. After the specified date, normal rate of interest i.e. 18% p.a. shall be charged for any further period of delay in furnishing the returns.
The central government issued Circular No.141/11/2020-GST dated 24.06.2020 to explain the manner of calculation of interest. The manner of calculation of interest for taxpayers having aggregate turnover above Rs. 5 Cr. for delayed filing of return for the month of March 2020 (due date of filing being 20.04.2020) is tabulated below for easy reference:
| S. No. | Date of Filing GSTR 3B | No. of days of delay | Interest |
| 1 | 02.05.20 | 12 | Zero-Interest |
| 2 | 20.05.20 | 30 | Zero-Interest for 15 days thereafter interest rate @9% p.a. for 15 days |
| 3 | 24.06.20 | 65 | Zero-Interest for 15 days thereafter interest rate @9% p.a. for 50 days |
| 4 | 30.06.20 | 71 | Zero-Interest for 15 days thereafter interest rate @9% p.a. for 50 days and Interest rate @18% for 6 days |
The manner of calculation of interest for taxpayers having aggregate turnover below Rs. 5 Cr. for delayed filing of return for the month of March 2020 (for registered persons for whom the due date of filing was 22.04.2020) and June 2020 (for registered persons for whom the due date of filing is 22.07.2020) is as illustrated in the table below:
| S. No. | Date of Filing GSTR 3B (March 20) | No. of days of delay | Interest |
| 1 | 22.06.20 | 61 | Zero-Interest |
| 2 | 22.09.20 | 153 | Zero-interest for 72 days, thereafter interest rate @9% p.a. for 81 days |
| 3 | 22.10.20 | 183 | Zero-interest for 72 days, thereafter interest rate @9% p.a. for 89 days and interest rate @18% p.a. for 22 days |
| S. No. | Date of Filing GSTR 3B (June 20) | No. of days of delay | Interest |
| 1 | 28.08.20 | 37 | Zero-Interest |
| 2 | 28.09.20 | 68 | Zero-Interest for 63 days, thereafter interest rate @9% p.a. for 5 days |
| 3 | 28.10.20 | 98 | Zero-Interest for 63 days, thereafter interest rate @9% p.a. for 7 days and interest rate @18% p.a. for 28 days |
CBIC has issued Notification No.57/2020 on 30.06.2020 to prescribe the maximum amount of late fee if GSTR-3B is filed up to 30.09.2020. The late fee shall be restricted to Rs. 500 in case of Normal returns and ‘zero’ in case of NIL returns for the tax periods from Feb 2020 to July 2020. Summary of CBIC notifications prescribing late fees for different categories of taxpayers is tabulated below for easy reference.
| Category- I | Tax Payers having turnover > Rs. 5 Crores in Preceding Financial Year | |||
| Tax Period | Due Date | Late Fees | Maximum Late Fee if the return is filed up to 30.09.2020 | |
| Nil, if filed by 24-06-2020 / prescribed due date in case of May to July 20 | ‘Zero’ in case of Nil Returns And Rs. 500/- in case of other than Nil Return (Notification No.57/2020) | |||
| February | 20-03-2020 | |||
| March | 20-04-2020 | |||
| April | 20-05-2020 | |||
| May | 27-06-2020 | |||
| June | 20-07-2020 | |||
| July | 20-08-2020 | |||
| Category- II | Group 1 States* – Tax Payers having turnover up to Rs. 5 Crores in Preceding Financial Year | ||
| Tax Period | Due Date | Late Fees waived if filed by | Maximum Late Fee if the return is filed up to 30.09.2020 |
| February | 22nd of following Month | 30-06-2020 | ‘Zero’ in case of Nil Returns And Rs. 500/- in case of other than Nil Return (Notification No.57/2020) |
| March | 03-07-2020 | ||
| April | 06-07-2020 | ||
| May | 12-09-2020 | ||
| June | 23-09-2020 | ||
| July | 27-09-2020 | ||
| Category- II | Group 2 States* – Tax Payers having turnover up to Rs. 5 Crores in Preceding Financial Year | ||
| Tax Period | Due Date | Late Fees waived if filed by | Maximum Late fee if the return is filed up to 30.09.2020 |
| February | 24th of following Month | 30-06-2020 | ‘Zero’ in case of Nil Returns And Rs. 500/- in case of other than Nil Return (Notification No.57/2020) |
| March | 05-07-2020 | ||
| April | 09-07-2020 | ||
| May | 15-09-2020 | ||
| June | 25-09-2020 | ||
| July | 29-09-2020 | ||
| Group 1 States | 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 |
| Group 2 States | 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 |
Tag: GST Updates