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GST COMPLIANCES AMID COVID 2019 RECENT DEVELOPMENTS

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GST COMPLIANCES AMID COVID 2019 RECENT DEVELOPMENTS
By: Dr. Sanjiv Agarwal
May 16, 2020
All Articles by: Dr. Sanjiv Agarwal       View Profile
  • Contents

The entire world is reeling under severe pandemic, COVID 2019 or Corona virus and India too has been badly affected causing social disruption, economic shut down and health concerns. The economy is at a virtual standstill and entire nation is under lockdown since 25th March, 2020 resulting in shutdown of all offices, shops, showrooms, factories and everything. All individuals are confined to their homes. This has resulted in inability to fulfill statutory obligations in relation to payment of taxes and filings, besides other corporate and other responsibilities.

Central Government has provided various relaxations on payment and in filing of returns which, inter alia include allowing delayed payment of taxes, lower or nil rate of interest, extension of due dates for payment of taxes and filing of returns etc.

The following tables provide the gist of relief / relaxation provided :

  1. GSTR-3B Returns

S.

No.

Return

Turnover

Period

Regular due date

Relief provided

till

Interest

Late fee and penalty

1

GSTR-3B

Less than ₹ 1.5 crores

February

22ndor 24th of next

month

30.06.2020

No Interest if returns have been furnished on or before the dates till which relief is provided

Not payable if return filed before the date till which relief is provided. However, in case, the same is filed after said dates, late fees and penalty shall be levied.

The Government have not extended the due dates of filing of return but have only provided relief by waiving off penalty and late fees and reducing the interest rates.

March

 

03.07.2020

April

 

06.07.2020

2

 

More than ₹ 1.5 crore but up to ₹ 5 crores

February

22ndor 24th of next

month

29.06.2020

March

 

30.06.2020

     

April

 

3

 

More than ₹ 5 crores

February

20.03.2020

04.04.2020

No interest till 15 days from regular due date and @

9%thereafter provided returns have been furnished till relief date

   

March

20.04.2020

05.05.2020

   

April

20.05.2020

04.06.2020

  1. GSTR-1 Returns

Return

Turnover

Period

Regular due date

Relief

provided

till

Interest

Late fee and penalty

GSTR-1

(Monthly)

More than ₹ 1.5 crores

March

11.04.2020

30.06.202

0

Not applicable

Note payable if return filed before the date till which relief is provided. However, in case, the same is filed after said dates, late fees and penalty shall be levied.

The Government have not extended the due dates of filing of return but have only provided relief by waiving off penalty and late fees and reducing the interest rates.

April

11.05.2020

May

11.06.2020

GSTR-1

(Quarterly)

Less than

₹ 1.5 crores

Jan-Mar

30.04.2020

(Source : Notification No. 31/2020-CT and 32/2020-CT dated 03.04.2020)

Following Illustration explains revised interest rate for taxpayers with aggregate turnover of more than ₹ 5 crores

S.No

Due Date of filing of return

Date of filing of GSTR 3B

No. of days of Delay

Whether condition for reduced interest fulfilled

Interest

1

20.04.2020

02.05.2020

11

Yes

No interest

2

20.04.2020

20.05.2020

30

Yes

Zero interest for 15 days

+ Interest @ 9% p.a for 15 days

3

20.04.2020

20.06.2020

61

Yes

Zero interest for 15 days

+ interest rate @ 9% p.a. for 46 days

4

20.04.2020

24.06.2020

65

Yes

Zero interest for 15 days

+ Interest @ 9% p.a for 50 days

5.

20.04.2020

30.06.2020

71

No

Interest @ 18% p.a for 71 days (i.e. no benefit of reduced interest)

(Source : Circular No.136/6/2020 –GST dated 03.04.2020)

  1. Revised due dates for GSTR 3B return for the month of May, 2020

Due Dates

      Turnover

27.06.2020

Taxpayers having an aggregate turnover of more than rupees 5 crores in the preceding financialyear

12.07.2020

  • Aggregate turnover upto ₹ 5crores
  • States Covered – Chhattisgarh, MP, Gujarat, Maharashtra, Karnataka, Goa, Kerala, TN, Telangana, Andhra Pradesh, Daman &Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Island and Lakshadweep

14.07.2020

  • Aggregate Turnover upto₹ 5crores
  • States Covered – HP, Punjab, Uttarakhand, Haryana, Rajasthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, WB, Jharkhand, Odisha, J&K, Ladakh, Chandigarh and Delhi

(Source: Notification No. 30/2020- Central Tax dated 03.04.2020)

  1. Amendment in Rule 36(4) on ITC

 Rule 36(4) of CGST Rules, 2017 has been amended to the following effect:

Before amendment:

  • The registered person shall be required to claim ITC to the extent of 110% of eligible ITC getting reflected in GSTR-2A of the tax period.
  • Taxpayer was required to calculate the amount as per the above provision for every tax period before filing of GSTR-3B.

After amendment:

  • Cumulative calculation of ITC allowed for period of February, March, April, May, June, July and August 2020. Therefore, for the returns furnished in said tax period, condition of Rule 36(4) not be applicable.
  • GSTR 3B return for September, 2020 to be furnished after adjustment of cumulative ITC calculated for the said months.

(Source : Notification No. 35/2020-CT dated 03.04.2020)

  1. Relief provided in respect of certain challenges faced by the registered persons in implementation of provisions of GST laws:

Cancellation of Goods and Services contract

The treatment under GST has been clarified in respect of certain transactions of supply of goods and services when when cancelled for any reason:

Nature of  Supply

Original Event

Document Issued

Trigger Event

Treatment under GST

Services

Advance

Received

Tax Invoice issued before  supply           of service

Contract cancelled before supply of service

  1. Credit note to be issued under section 34 of CGST Act, 2017 for reduction of tax liability.
  2. Details of such credit notes shall be declared in the return for the month during which such credit note has been  issued. There is no need to file a separate refund claim.
  3. Where there is no output liability against which a credit note can be adjusted, refund  claim allowable under  'Excess payment of tax, if any' through FORM GST RFD-01.

Services

Advance Received

Receipt voucher

Contract cancelled before supply of service

Issue refund voucher under GST. Refund claim to be filed by filing FORM GST RFD-01 under the category    'Refund   of excess payment of tax'

Goods

Goods supplied

Tax invoice

Goods returned

  1. Credit note to be issued under section 34 of CGST Act, 2017 for reduction  of tax liability.
  2. Details of such credit notes shall be declared in the return for the month during which such credit note has been issued.
  3. There is no need to file a separate refund claim.
  4. Where there is no output liability against which a credit note can be adjusted, refund claim allowable under 'Excess payment of tax, if any' through FORM GST RFD-01.

Deferment of filing of refund claim if expiring on 31.03.2020

As per notification No. 35/2020-Central Tax dated 03.04.2020, where the timeline for refund compliances falls during the period from 20.03.2020 to 29.06.2020, the same stand extended till 30.06.2020.

  1. Due Date extension of deposit of TDS
  • The due date for furnishing of return in FORM GSTR-7 along with deposit of tax deducted during the period from 20.03.2020 to 29.06.2020 has been extended till 30.06.2020.
  • No interest under section 50 of CGST Act, 2017 shall be leviable if tax deducted is deposited by 30.06.2020.

(Source : Circular No. 137/07/2020-GST dated 13.04.2020)

  1. GST FORM PMT-09

Form GST PMT-09 has been made available on GST portal and it enables a taxpayer to make intra-head or inter-head transfer of amount available in Electronic Cash Ledger. A taxpayer can file GST PMT 09 for transfer of any amount of tax, interest, penalty, fee or others available under one (major or minor) head to another (major or minor) head in the Electronic Cash Ledger. Form GST PMT 09 provides flexibility to taxpayers to make multiple transfers from more than one Major/Minor head to another Major/Minor head if the amount is available in the Electronic CashLedger.

To file Form GST PMT-09, taxpayers are required to log in on GST portal with valid credentials and navigate to Services → Ledgers→ Electronic Cash Ledger → File GST PMT-09 for Transfer of Amount option. After Form GST PMT-09 is filed:

  • ARN is generated on the successful filing of Form GST PMT-09.
  • An SMS and an email is sent to the taxpayer on his registered mobile and email id.
  • Electronic Cash ledger will get updated after successful filing of Form GST PMT- 09.
  • Filed form GST PMT-09 will be available for view/download in PDF format.

(Source : Notification No.: 37/2020-Central Tax dated 28.04.2020)

  1. Extension of validity of E-way bills 

CBIC had vide Notification No. 35/2020 dated 3rd April, 2020 extended the period of validity till 30th April, 2020 for e-way bill validity expires during the period 20th day of March, 2020 to 15th day of April, 2020.

Now CBIC has provided that where an e-way bill has been generated on or before the 24th day of March, 2020 and its period of validity expires during the period 20th day of March, 2020 to the 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 31st day of May, 2020.

[Source: Notification No. 40/2020- Central Tax dated 05.05.2020]

  1. Extension of due date of Annual Return & Reconciliation Statement for the FY 2018-19

The time limit for furnishing of the annual return in Form 9 and Reconciliation Statement in Form 9C specified under section 44 of the said Act read with rule 80 of the said rules, electronically through the common portal, for the financial year 2018-2019 has been further extended till the 30th September, 2020.

[Source: Notification No. 41/2020- Central Tax dated 05.05.2020]

  1. Verification of filing of Form 3B through EVC

Considering the difficulty faced by registered taxpayers in applying for DSC, CBIC has provided that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April, 2020 to the 30th day of June, 2020, also be allowed to furnish the return under section 39 in FORM GSTR-3B verified through Electronic Verification Code (EVC) i.e one time password.

New Rule 67A provide for furnishing of NIL return by short messaging service (SMS) to registered person in Form GSTR-3B for a tax period by using the registered mobile number. Nil return would mean a return u/s 39 that has nil or no entry in all tables of Form-3B.

[Source: Notification No. 38/2020- Central Tax dated 05.05.2020]

  1. Extended due date for GST ITC-04

The due date of filing Form GST-ITC-04 in respect of goods dispatched to a job worker or received from a job worker for the quarter ending March, 2020 which falls due on 25.04.2020 has been extended upto 30.06.2020.

(Source: Notification No. 35/2020-Central Tax dated 03.04.2020;

Circular No. 138/08/2020-GST dated 06.05.2020)

The above relaxations / extensions may be kept in mind by the tax payers for ensuring timely compliances within the relaxed  norms / extended date lines.

 

By: Dr. Sanjiv Agarwal - May 16, 2020

 

Discussions to this article

 

This is ready reckoner for me. Nicely compiled. Thanks.

By: Ganeshan Kalyani
Dated: 17/05/2020

 

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