Clarification in respect of various measures announced by the Government for providing relief to the taxpayers in view of the spread of Novel Corona Virus (COVID-19)

The spread of Novel Corona Virus (COVID-19) across many countries of the world,
including India, has caused immense loss to the lives of people and resultantly impacted the
trade and industry. In view of the emergent situation and challenges faced by taxpayers in
meeting the compliance requirements under various provisions of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”), Government has
announced various relief measures relating to statutory and regulatory compliance matters
across sectors.

  1. Government has issued the following notifications in order to provide relief to the
    taxpayers:
    S.
    No.
    Notification Remarks
  2. N notification No.
    30/2020- Central
    Tax, dated
    03.04.2020
    Amendment in the CGST Rules so as to allow taxpayers opting
    for the Composition Scheme for the financial year 2020-21 to
    file their option in FORM CMP-02 till 30th June 2020 and to
    allow the cumulative application of the condition in rule 36(4) for
    the months of February 2020 to August 2020 in the return for
    tax period of September 2020.
  3. N notification No.
    31/2020- Central
    Tax, dated
    03.04.2020
    A lower rate of interest of NIL for first 15 days after the due
    date of filing return in FORM GSTR-3B and @ 9% thereafter
    is notified for those registered persons having aggregate
    turnover above Rs. 5 Crore and NIL rate of interest is notified
    for those registered persons having aggregate turnover below
    Rs. 5 Crore in the preceding financial year, for the tax periods
    of February, 2020 to April, 2020. This lower rate of interest
    shall be subject to condition that due tax is paid by filing return
    in FORM GSTR-3B by the date(s) as specified in the
    Notification.
    Circular No. 136/06/2020-GST
    Page 2 of 5
  4. N otification No.
    32/2020- Central
    Tax, dated
    03.04.2020
    Notification under section 128 of CGST Act for waiver of late
    fee for delay in furnishing returns in FORM GSTR-3B for the
    tax periods of February, 2020 to April, 2020 provided the return
    in FORM GSTR-3B by the date as specified in the Notification.
  5. N otification No.
    33/2020- Central
    Tax, dated
    03.04.2020
    Notification under section 128 of CGST Act for waiver of late
    fee for delay in furnishing the statement of outward supplies in
    FORM GSTR-1 for taxpayers for the tax periods March, 2020
    to May, 2020 and for quarter ending 31st March 2020 if the same
    are furnished on or before 30th day of June, 2020.
  6. N otification No.
    34/2020- Central
    Tax, dated
    03.04.2020
    Extension of due date of furnishing statement, containing the
    details of payment of self-assessed tax in FORM GST CMP-
    08 for the quarter ending 31st March, 2020 till the 7th day of July,
    2020 and filing FORM GSTR-4 for the financial year ending
    31st March, 2020 till the 15th day of July, 2020.
  7. N otification No.
    35/2020- Central
    Tax, dated
    03.04.2020
    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.
  8. Various issues relating to above mentioned notifications have been examined. In order
    to ensure uniformity in the implementation of the provisions of the law across the field
    formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST
    Act hereby clarifies each of these issues as under:-
    S.
    No.
    Issue Clarification
  9. What are the
    measures that have
    been specifically
    taken for taxpayers
    who have opted to
    pay tax under section
    10 the CGST Act or
    those availing the
    option to pay tax
    under the
    notification No.
    02/2019– Central
    Tax (Rate), dated the
    7th March, 2019?
  10. The said class of taxpayers, as per the notification No.
    34/2020- Central Tax, dated 03.04.2020, have been allowed,
    to,-
    (i) furnish the statement of details of payment of selfassessed
    tax in FORM GST CMP-08 for the quarter
    January to March, 2020 by 07.07.2020; and
    (ii) furnish the return in FORM GSTR-4 for the financial
    year 2019-20 by 15.07.2020.
  11. In addition to the above, taxpayers opting for the
    composition scheme for the financial year 2020-21, have
    been allowed, as per the notification No. 30/2020- Central
    Tax, dated 03.04.2020, to,-
    (i) file an intimation in FORM GST CMP-02 by
    30.06.2020; and
    (ii) furnish the statement in FORM GST ITC-03 till
    31.07.2020.
  12. Whether due date of
    furnishing FORM
    GSTR-3B for the
    months of February,
    March and April,
    2020 has been
    extended ?
  13. The due dates for furnishing FORM GSTR-3B for the
    months of February, March and April, 2020 has not been
    extended through any of the notifications referred in para 2
    above.
  14. However, as per notification No. 31/2020- Central Tax,
    dated 03.04.2020, NIL rate of interest for first 15 days after
    the due date of filing return in FORM GSTR-3B and reduced
    Circular No. 136/06/2020-GST
    Page 3 of 5
    rate of interest @ 9% thereafter has been notified for those
    registered persons whose aggregate turnover in the preceding
    financial year is above Rs. 5 Crore. For those registered
    persons having turnover up to Rs. 5 Crore in the preceding
    financial year, NIL rate of interest has also been notified.
  15. Further, vide notification as per the notification No.
    32/2020- Central Tax, dated 03.04.2020, Government has
    waived the late fees for delay in furnishing the return in
    FORM GSTR-3B for the months of February, March and
    April, 2020.
  16. The lower rate of interest and waiver of late fee would be
    available only if due tax is paid by filing return in FORM
    GSTR-3B by the date(s) as specified in the Notification.
  17. What are the
    conditions attached
    for availing the
    reduced rate of
    interest for the
    months of February,
    March and April,
    2020, for a registered
    person whose
    aggregate turnover
    in the preceding
    financial year is
    above Rs. 5 Crore?
  18. As clarified at sl.no. (2) above, the due date for furnishing
    the return remains unchanged; i.e. 20th day of the month
    succeeding such month. The rate of interest has been notified
    as Nil for first 15 days from the due date, and 9 per cent per
    annum thereafter, for the said months.
  19. The reduced rate of interest is subject to the condition that
    the registered person must furnish the returns in FORM
    GSTR-3B on or before 24th day of June, 2020.
  20. In case the returns in FORM GSTR-3B for the said
    months are not furnished on or before 24th day of June, 2020
    then interest at 18% per annum shall be payable from the due
    date of return, till the date on which the return is filed. In
    addition, regular late fee shall also be leviable for such delay
    along with liability for penalty.
  21. How to calculate the
    interest for late
    payment of tax for
    the months of
    February, March
    and April, 2020 for a
    registered person
    whose aggregate
    turnover in
    preceding financial
    year is above Rs. 5
    Crore?
  22. As explained above, the rate of interest has been notified
    as Nil for first 15 days from the due date, and 9 per cent per
    annum thereafter, for the said months. The same can be
    explained through an illustration.
    Illustration:- Calculation of interest for delayed filing of
    return for the month of March, 2020 (due date of filing being
    20.04.2020) may be illustrated as per the below Table:
    S.
    No.
    Date of
    filing
    GSTR-3B
    No. of
    days
    of
    delay
    Whether
    condition
    for reduced
    interest is
    fulfilled?
    Interest
    1 02.05.2020 11 Yes Zero interest
    2 20.05.2020 30 Yes Zero interest
    for 15 days +
    interest rate
    @9% p.a. for
    15 days
    3 20.06.2020 61 Yes Zero interest
    for 15 days +
    interest rate
    @9% p.a. for
    46 days
    Circular No. 136/06/2020-GST
    Page 4 of 5
    4 24.06.2020 65 Yes Zero interest
    for 15 days +
    interest rate
    @9% p.a. for
    50 days
    5 30.06.2020 71 NO Interest rate
    @18% p.a.
    for 71 days
    (i.e. no
    benefit of
    reduced
    interest) 5. What are the
    conditions attached
    for availing the NIL
    rate of interest for
    the months of
    February, March
    and April, 2020, for a
    registered person
    whose aggregate
    turnover in
    preceding financial
    year is up to Rs. 5
    Crore?
  23. As clarified at sl.no. (2) above, the due date for furnishing
    the return remains unchanged. The rate of interest has been
    notified as Nil for the said months.
  24. The conditions for availing the NIL rate of interest is that
    the registered person must furnish the returns in FORM
    GSTR-3B on or before the date as mentioned in the
    notification No. 31/2020- Central Tax, dated 03.04.2020.
  25. In case the return for the said months are not furnished on
    or before the date mentioned in the notification then interest
    at 18% per annum shall be charged from the due date of
    return, till the date on which the return is filed as
    explained in the illustration at sl.no (4) above, against entry
  26. In addition, regular late fee shall also be leviable for such
    delay along with liability for penalty.
  27. Whether the due
    date of furnishing the
    statement of outward
    supplies in FORM
    GSTR-1 under
    section 37 has been
    extended for the
    months of February,
    March and April
    2020?
    Under the provisions of section 128 of the CGST Act, in
    terms of notification No. 33/2020- Central Tax, dated
    03.04.2020, late fee leviable under section 47 has been
    waived for delay in furnishing the statement of outward
    supplies in FORM GSTR-1 under Section 37, for the tax
    periods March, 2020, April 2020, May, 2020 and quarter
    ending 31st March 2020 if the same are furnished on or before
    the 30th day of June, 2020.
  28. Whether restriction
    under rule 36(4) of
    the CGST Rules
    would apply during
    the lockdown
    period?
    Vide notification No. 30/2020- Central Tax, dated
    03.04.2020, a proviso has been inserted in CGST Rules 2017
    to provide that the said condition shall not apply to input tax
    credit availed by the registered persons in the returns in
    FORM GSTR-3B for the months of February, March, April,
    May, June, July and August, 2020, but that the said condition
    shall apply cumulatively for the said period and that the
    return in FORM GSTR-3B for the tax period of September,
    2020 shall be furnished with cumulative adjustment of input
    tax credit for the said months in accordance with the
    condition under rule 36(4).
  29. What will be the
    status of e-way bills
    which have expired
    In terms of notification No. 35/2020- Central Tax, dated
    03.04.2020,Issued under the provisions of 168A of the CGST
    Act, where the validity of an e-way bill generated under rule
    Circular No. 136/06/2020-GST
    Page 5 of 5
    during the lockdown
    period?
    138 of the CGST Rules expires during the period 20th day
    of March, 2020 to 15th day of April, 2020, the validity
    period of such e-way bill has been extended till the 30th day
    of April, 2020.
  30. What are the
    measures that have
    been specifically
    taken for taxpayers
    who are required to
    deduct tax at source
    under section 51,
    Input Service
    Distributors and
    Non-resident
    Taxable persons?
    Under the provisions of section 168A of the CGST Act, in
    terms of notification No. 35/2020- Central Tax, dated
    03.04.2020, the said class of taxpayers have been allowed to
    furnish the respective returns specified in sub-sections (3),
    (4) and (5) of section 39 of the said Act, for the months of
    March, 2020 to May, 2020 on or before the 30th day of June,
    2020.
  31. What are the
    measures that have
    been specifically
    taken for taxpayers
    who are required to
    collect tax at source
    under section 52?
    Under the provisions of section 168A of the CGST Act, in
    terms of notification No. 35/2020- Central Tax, dated
    03.04.2020, the said class of taxpayers have been allowed to
    furnish the statement specified in section 52, for the months
    of March, 2020 to May, 2020 on or before the 30th day of
    June, 2020.
  32. The time limit for
    compliance of some
    of the provisions of
    the CGST Act is
    falling during the
    lock-down period
    announced by the
    Government. What
    should the taxpayer
    do?
    Vide notification No. 35/2020- Central Tax, dated
    03.04.2020, issued under the provisions of 168A of the CGST
    Act, except for few provisions covered in exclusion clause,
    any time limit for completion or compliance of any action
    which falls during the period from the 20th day of March,
    2020 to the 29th day of June, 2020, and where completion or
    compliance of such action has not been made within such
    time, has been extended to 30th day of June, 2020.
  33. It is requested that suitable trade notices may be issued to publicize the contents of this
    circular.
  34. Difficulty, if any, in the implementation of the above instructions may please be
    brought to the notice of the Board. Hindi version would follow.
    (