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COVID-19 VS. GST-17 (PART-I)

COVID-19 VS. GST-17 (PART-I)

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 25.3.2020 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 :

central Government has provided various relaxations on payment and in the filing of returns which, inter alia include allowing delayed payment of taxes, lower or nil rate of interest, an extension of due dates for payment of taxes and filing of returns etc.
The following tables provide the gist of relief/relaxation provided :

A. GSTR-3B Returns

wdt_ID Sno Return Turnover Period Regular Due date Relief provide till Interest Late fee and penalty
Sno Return Turnover Period Regular Due date Relief provide till Interest Late fee and penalty

B. GSTR-1 Returns

wdt_ID Return Turnover Period Regular due date Relief Provided till Interest Late fees and penalty
Return Turnover Period Regular due date Relief Provided till Interest Late fees and penalty

(Source :Notification No. 31/2020-CTand32/2020-CT dated 03.04.2020)

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

wdt_ID S.No Due Date of filing or return Date of filing or GSTR 3B No. of days of Delay Whether condition for reduce interest fulfilled Interest
S.No Due Date of filing or return Date of filing or GSTR 3B No. of days of Delay Whether condition for reduce interest fulfilled Interest

(Source :Circular No. 136/6/2020 GST dated 3.4.2020)

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

wdt_ID Due Dates Turnover
Due Dates Turnover

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

D. Amendment in Rule 36(4) on ITC

Rule 36(4) of CGST Rules, 2017has 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
  • 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
  • GSTR3B return for September, 2020 to be furnished after adjustment of cumulative ITC calculated for the said

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

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

Cancellation of Goods and Services contract

wdt_ID Nature of Supply Original Event Document Issued Trigger Event Treatment under GST
Nature of Supply Original Event Document Issued Trigger Event Treatment under GST

Deferment of filing of refund claim if expiring on 31.3.2020

As per notification No. 35/2020-Central Tax dated 3.4.2020, where the timeline  for  refund  compliances  falls  during  the  period  from   20.3.2020   to 29 6.2020, the same stand extended till 30.6.2020.

F. 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 3.2020 to 29.6.2020 has been extended till 30.6.2020.
  • No interest under section 50 of CGST Act, 2017 shall be leviable if tax deducted is deposited by 6.2020.

(Source :Circular No. 137/07/2020-GST dated 13.4.2020)

G. 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 Cash Ledger. 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
    • Electronic Cash ledger will get updated after the successful filing of Form GST PMT-
    • Filed form GST PMT-09 will be available for view/download in PDF(Source: Notification No.: 37/2020-Central Tax dated 28.4.2020)

H. Extension of validity of E-way bills

  • CBIC had vided Notification No.  35/2020  dated 3.4.2020 extended the period of validity till 30.4.2020 for e-way bill validity expires during the period 20.3.2020 to 15.4.2020. Now CBIC has provided that where an e-way bill has been generated on or before the 24.3.2020 and its period of validity expires during the period 20thday  of March 2020 to the 15.4.2020, the validity period of such e-way bill shall be deemed to have been extended till the31.5.2020.[Source: Notification No. 40/2020- Central Tax dated 05.05.2020]

I. 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 9Cspecified 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 30.9.2020.

[Source: Notification No. 41/2020- Central Tax dated 5.5.2020]

J. 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 21.4.2020 to the 30.6.2020, 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 67Aprovide for furnishing of NIL return  by  short  messaging service (SMS) to registered person in FormGSTR-3B for a tax period by using the registered mobile number Nil return would mean a return under section 39  that has nil or no entry in all tables of Form-3B.

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

K. 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 4.2020 has been extended upto 30.6.2020.

Notification No. 35/2020-Central Tax dated 3.4.2020; Circular No. 138/08/2020-GST dated 06.05.2020)

The above relaxations/extensions may be kept in mind by the taxpayers for ensuring timely compliances within the relaxed norms / extended datelines.

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In Today’s world of COVID, basic necessities of a commoner have expanded from just-food, house, clothes to the protective measures and equipment. The GOI has issued various requests, notifications urging every citizen to help the government in fighting COVID collectively by various means, be it self-social distancing, donating, social works etc…………….

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