Compliance Relaxation under GST-FAQs Answered by Anandaday Misshra, Founder & Managing Partner, AMLEGALS

General Extension of Due Dates

1. Whether the Government has extended the due date for compliance under GST falling between 20^th March 2020 to 29^th June 2020?

Answer: Yes, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has extended the due date of various compliance under CGST Act, IGST Act and UTGST Act, falling between 20^th March 2020 to 29^th June 2020, to 30^th June 2020.

The extended due date is applicable for 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 CGST Act, IGST Act and UT GST Act.

Time of Supply

2. Whether the extension of compliance till 30^th June 2020 will be applicable to provisions with respect to time of supply?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to the provisions of Chapter IV of the CGST Act, 2017 which includes provisions of time of supply.

Tax Invoice

3. Whether the due date of issuing tax invoice, falling due between 20^th March 2020 to 29^th June 2020, has been extended to 30^th June 2020?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to Section 31 of the CGST Act, 2017 which provides time limit for issuance of tax invoice.

Composition Dealer

4. Whether any extension has been granted to opt for Composition Scheme for the Financial Year 2020-21?

Answer: Yes, the CBIC, vide Notification No. 30/2020-CT dated 03.04.2020, has provided that the person who wants to opt for Composition Scheme for the Financial Year 2020-21 can opt for the same till 30^th June 2020 instead of 31^st March 2020.

5. Whether the person registered under Composition Scheme, who has crossed the threshold limit of turnover between 20^th March 2020 to 29^th June 2020, can continue to be in Composition Scheme till 30^th June 2020?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to Section 10(3) of the CGST Act, 2017 which provides that once the person registered under Composition Scheme crosses the threshold then registration of such person under Composition Scheme shall lapse.

Registration

6. Whether the time limit for getting registered under CGST Act, 2017, for the person who has become liable to get registered under CGST Act, 2017 between 20^th March 2020 to 29^th June 2020, has been extended till 30^th June 2020?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to Section 25 of the CGST Act, 2017 which provides time limit to get registered under the CGST Act, 2017.

7. Whether the Causable Taxable Person or Non-resident Taxable Person, who have commenced business between 20^th March 2020 to 29^th June 2020, can apply for registration on 30^th June 2020 or thereafter?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to Section 25 of the CGST Act, 2017 which provides time limit for Causable Taxable Person or Non-resident Taxable Person to get registered under the CGST Act, 2017.

8. Whether the validity of registration of Causable Taxable Person or Non-resident Taxable Person, expiring between 20^th March 2020 to 29^th June 2020, has been extended to 30^th June 2020?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to Section 27 of the CGST Act, 2017 which provides time limit for Causable Taxable Person or Non-resident Taxable Person to get registered under the CGST Act, 2017. However, such persons can apply for extension of validity of registration in the prescribed manner.

Returns

9. Whether the due date of filing GSTR-1, falling due between 20^th March 2020 to 29^th June 2020, has been extended to 30^th June 2020?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to Section 37 of the CGST Act, 2017 which provides time limit for furnish details of outward supply under Form GSTR-1. 

However, the CBIC has waived the late fee for certain period which has been discussed under heading Later Fee Waiver.

10. Whether the due date of filing GSTR-3B, for the month of February 2020 to April 2020, has been extended to 30^th June 2020?

Answer: No, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has provided that the extension of due date till 30^th June 2020 will not be applicable to Section 39 of the CGST Act, 2017, except sub-section (3), (4) & (5), which provides time limit for furnish details of outward supply under Form GSTR-3B. 

However, the CBIC has waived the interest and late fee for certain period which has been discussed under heading Interest & Later Fee Waiver.

11. Whether the due date of filing GSTR-3B, for the month May 2020, has been extended?

Answer: Yes, the CBIC, vide Notification No. 36/2020-CT dated 03.04.2020, has been extended the due date of filing of GSTR-3B for the month of May 2020 in staggered manner.

12. Whether the due date of filing Form GST CMP-08 by the composition dealer, for the quarter ending 31^st March 2020, has been extended?

Answer: Yes, the CBIC, vide Notification No. 34/2020-CT dated 03.04.2020, has extended the due date of filing Form GST CMP-08, statement containing details of payment of self/-assessed tax, by the composition dealer for the quarter ending 31^st March 2020 to 7^th July 2020.

13. Whether the due date of filing Form GSTR-4 by the composition dealer for the Financial Year 2019-20 has been extended?

Answer: Yes, the CBIC, vide Notification No. 34/2020-CT dated 03.04.2020, has extended the due date of filing Form GSTR-4 by the composition dealer for the Financial Year 2019-20 to 15^th July 2020.

14. Whether the due date of filing GSTR-6, falling due between 20^th March 2020 to 29^th June 2020, for the Input Service Distributor has been extended to 30^th June 2020?

Answer: Yes, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has extended the due date of filing GSTR-6, falling due between 20^th March 2020 to 29^th June 2020, for the Input Service Distributor to 30^th June 2020.

15. Whether the due date of filing GSTR-7, falling due between 20^th March 2020 to 29^th June 2020, for the person liable to deduct tax at source under Section 51 of the CGST Act, 2017, has been extended to 30^th June 2020?

Answer: Yes, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has extended the due date of filing GSTR-7, falling due between 20^th March 2020 to 29^th June 2020, for the person liable to deduct tax at source under Section 51 of the CGST Act, 2017, to 30^th June 2020.

Validity of E-Way Bill

16. Whether the validity of e-Way Bills, where period of validity between 20^th March 2020 to 15^th April 2020, has been extended?

Answer: Yes, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has extended the validity of e-Way Bills, where period of validity between 20^th March 2020 to 15^th April 2020, to 30^th April 2020.

It is one of the major relief during this lockdown when the logistics is a big concern and industry is also struggling for manpower.

Interest Waiver

17. Whether the interest has been waived for delayed payment of tax, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover upto INR 1.5 Crore?

Answer: Yes, the CBIC, vide Notification No. 31/2020-CT dated 03.04.2020, has waived the interest on delayed payment of tax, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover upto INR 1.5 Crore subject to the condition that such taxpayer shall file the return in GSTR – 3B for the month of February 2020 by 30^th June 2020, for the month of March 2020 by 3^rd July 2020 and for the month of April 2020 by 6^th July 2020.

Thus, if the return in GSTR-3B is not filed on or before the above mentioned dates then such taxpayer shall be liable to pay the interest @18% p.a. on the delayed payment of tax. 

18. Whether the interest has been waived for delayed payment of tax, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of more than INR 1.5 Crore and upto INR 5 Crore?

Answer: Yes, the CBIC, vide Notification No. 31/2020-CT dated 03.04.2020, has waived the interest on delayed payment of tax, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of more than INR 1.5 Crore and upto INR 5 Crore subject to the condition that such taxpayer shall file the return in GSTR – 3B for the month of February 2020 and March 2020 by 20^th June 2020 and for the month of April 2020 by 30^th June 2020.

Thus, if the return in GSTR-3B is not filed on or before the above mentioned dates then such taxpayer shall be liable to pay the interest @18% p.a. on the delayed payment of tax. 

19. Whether the interest has been waived for delayed payment of tax, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of INR 5 Crore and above?

Answer: Yes, the CBIC, vide Notification No. 31/2020-CT dated 03.04.2020, has waived the interest on delayed payment of tax, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of INR 5 Crore and above subject to the condition that such taxpayer shall file the return in GSTR – 3B, for the month of February 2020, March 2020 and April 2020, within 15 days of the actual due date.

However, after 15 days of due date, such taxpayer shall be liable to pay interest on delayed payment of tax at the reduced rate of 9% p.a. provided that the return in GSTR – 3B, for the month of February 2020, March 2020 and April 2020, shall be filed by 24^th June 2020. Such interest will be calculated from the expiry of 15 days after the due date.

Thus, if the return in GSTR-3B is not filed on or before the above mentioned date then such taxpayer shall be liable to pay the interest @18% p.a. on the delayed payment of tax. 

Late Fee Waiver

20. Whether the late fee has been waived for delayed filing of return in GSTR-3B, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover upto INR 1.5 Crore?

Answer: Yes, the CBIC, vide Notification No. 32/2020-CT dated 03.04.2020, has waived the late fee on delayed filing of return in GSTR-3B, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover upto INR 1.5 Crore subject to the condition that such taxpayer shall file the return in GSTR – 3B for the month of February 2020 by 30^th June 2020, for the month of March 2020 by 3^rd July 2020 and for the month of April 2020 by 6^th July 2020.

Thus, if the return in GSTR-3B is not filed on or before the above mentioned dates then such taxpayer shall be liable to pay the late fee on delayed filing of return in GSTR-3B and such late fee shall be applicable from the actual due date of filing of return in GSTR-3B.

21. Whether the late fee has been waived for delayed filing of return in GSTR-3B, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of more than INR 1.5 Crore and upto INR 5 Crore?

Answer: Yes, the CBIC, vide Notification No. 32/2020-CT dated 03.04.2020, has waived the  late fee on delayed filing of return in GSTR-3B, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of more than INR 1.5 Crore and upto INR 5 Crore subject to the condition that such taxpayer shall file the return in GSTR – 3B for the month of February 2020 and March 2020 by 20^th June 2020 and for the month of April 2020 by 30^th June 2020.

Thus, if the return in GSTR-3B is not filed on or before the above mentioned dates then such taxpayer shall be liable to pay the late fee on delayed filing of return in GSTR-3B and such late fee shall be applicable from the actual due date of filing of return in GSTR-3B.

22. Whether the late fee has been waived for delayed filing of return in GSTR-3B, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of INR 5 Crore and above?

Answer: Yes, the CBIC, vide Notification No. 32/2020-CT dated 03.04.2020, has waived the late fee on delayed filing of return in GSTR-3B, for the month of February 2020, March 2020 and April 2020, by the taxpayer having turnover of INR 5 Crore and above subject to the condition that such taxpayer shall file the return in GSTR – 3B, for the month of February 2020, March 2020 and April 2020, by 24^th June 2020. 

Thus, if the return in GSTR-3B is not filed on or before the above mentioned date then such taxpayer shall be liable to pay the late fee on delayed filing of return in GSTR-3B and such late fee shall be applicable from the actual due date of filing of return in GSTR-3B.

23. Whether the late fee has been waived for delayed filing of return in GSTR-1, for the month of February 2020, March 2020 and April 2020, by the registered person?

Answer: Yes, the CBIC, vide Notification No. 33/2020-CT dated 03.04.2020, has waived the late fee on delayed filing of return in GSTR-1, for the month of February 2020, March 2020 and April 2020, by the registered person subject to the condition that such taxpayer shall file the return in GSTR – 1, for the month of February 2020, March 2020 and April 2020, by 30^th June 2020. 

Thus, if the return in GSTR-1 is not filed on or before the above mentioned date then such taxpayer shall be liable to pay the late fee on delayed filing of return in GSTR-1 and such late fee shall be applicable from the actual due date of filing of return in GSTR-1.

Relief under Rule 36(4)

24. Whether any relief has been granted with respect to compliance of Rule 36(4) of the CGST Rules, 2017?

Answer: Rule 36(4) of the CGST Rules, 2017 provides that the Input Tax Credit on the basis of such  invoices or debit notes which are not reflected in GSTR-2A of the taxpayer shall not exceed 10% of the eligible Input Tax Credit available in respect of invoices or debit notes the details of which have been reflected in GSTR-2A. The said restriction is applicable for each tax period/ month.

However, the CBIC, vide Notification No. 30/2020-CT dated 03.04.2020, has inserted a proviso to Rule 36(4) of the CGST Rules, 2017 to provide that the above condition shall apply cumulatively for the period February 2020 to August 2020 and the return in Form GSTR-3B for the tax period September 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months.

In other words, the taxpayer can avail Input Tax Credit on the basis of such invoices or debit notes which are not reflected in GSTR-2A of the taxpayer for the period February 2020 to August 2020. However, at the time of filing of return in GSTR-3B for the month of September 2020 the taxpayer has to apply the restriction of 10% cumulatively for the period February 2020 to August 2020 and make adjustment in its electronic credit ledger.

For example, the total Input Tax Credit availed by the taxpayer for the period February 2020 to August 2020 is INR 1,50,00,00/-. The Input Tax Credit, on the basis of invoices or debit notes which are reflected in GSTR-2A for the period February 2020 to August 2020, is INR 1,00,00,00/-. 

Thus, the registered person in GSTR-3B for the month of September 2020 shall be liable to reverse the Input Tax Credit which is in excess of the 10% of the eligible Input Tax Credit available in respect of invoices or debit notes the details of which have been reflected in GSTR-2A. Hence, the registered person shall be liable to reverse Input Tax Credit of INR 40,00,000/- in GSTR-3B for the month of September 2020.

25. Whether the taxpayer shall be liable to pay interest in the Input Tax Credit reversed in GSTR-3B for the month of September 2020 after cumulative adjustment in terms of proviso to Rule 36(4) of the CGST Rules, 2020?

Answer: The Notification No. 30/2020-CT dated 03.04.2020 is silent on this aspect. However, since the restriction on availment of Input Tax Credit on the basis of invoices or debit notes unmatched with GSTR-2A has been deferred for the period February 2020 to August 2020, the interest liability on reversal in the month of September should not arise.

In any case, a clarification from the CBIC to remove the ambiguity on the above issue will be most welcomed.

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Anandaday Misshra is the Founder & Managing Partner, AMLEGALS, a multi-specialized law firm. He is a practising High Court Advocate with two decades of experience in litigation and arbitration. He specializes in GST, Contractual Laws, Arbitration, Business Laws & Insolvency Laws. He has authored book on GST- Law & Procedure (Taxmann). His other two upcoming books are on Insolvency & Bankruptcy Code and Arbitration.

Disclaimer: The views or opinions expressed are solely of the author.