Central Tax Circular 136/2020 – Clarification in respect of various measures announced by the Government for providing relief to the taxpayers in view of spread of Novel Corona Virus (COVID-19) – Reg


Central Tax Circulars

CGST Circular 136/2020

Circular Number 136/2020
Circular Date 03-04-2020
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To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)

The Principal Director Generals / Director Generals (All)

Madam/Sir,

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

1) 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.

2) Government has issued following notifications in order to provide relief to the
taxpayers:

S.No. Notification Remarks
1. 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 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.
2. 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.
3. Notification 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.
4. Notification 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.
5. Notification 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
CMP08 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.
6. Notification 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.

3) 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
1. 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?

1. 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.

    • 2. 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.

    		•
    2. Whether due date of furnishing FORM
    GSTR-3B     for the months of February, March and April, 2020 has been extended
    ?

    1. 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.

    2. 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 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.

    3. 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.

    4. 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.
    3. 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?

    1. 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.

    2. 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.

    3. 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.
    4. 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?

    1. 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
    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?

    1. 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.

    2. The conditions for availing the NIL rate of interest is that
    the registered person must furnish the returns inFORM
    GSTR-3B     on or before the date as mentioned in the
    notification No. 31/2020- Central Tax, dated 03.04.2020.

    3. 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

    5. In addition, regular late fee shall also be leviable for such
    delay along with liability for penalty.
    6. 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.
    7. 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).
    8. What will be the status of e-way bills
    which have expired during the lockdown period?    		 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 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.
    9. 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.
    10. 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.
    11. 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.

    4) It is requested that suitable trade notices may be issued to publicize the contents of this
    circular.

    5) Difficulty, if any, in the implementation of the above instructions may please be
    brought to the notice of the Board. Hindi version would follow.

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