Goods and Services Tax Updates - June 2020

Furnishing Nil FORM GSTR-3B by Short Messaging Services (SMS) has been notified

In an effort to ease the worries of the businessman at least to the extent of GST compliance, CBIC has rolled out the facility of filing nil FGSTR-3B through SMS starting and notified that the facility of filling through SMS will start from 08 June 2020.

Further, the above facility is not available for composition taxpayers but can extend to casual taxable persons, SEZ units or developers.

(Read Notification No. 44/2020 – Central Tax dated 08 June 2020)

CBIC extended the period to pass refund orders

As per Section 54(7) of CGST Act, 2017 provides that the final order in GST refund shall be issued within sixty days from the date of receipt of application complete in all respects. However, considering the situation of COVID-19 pandemic, If GST refund order date falls between 20th March to 29th June 2020 in that case refund order can be issued within 75 days (i.e. 60 + 15 Days) of receipt of reply of notice or 30th June 2020, whichever is later.

(Read Notification No. 46/2020 – Central Tax dated 09 June 2020)

Extension of validity of the e-way bill

CBIC extends the validity of the e-way bill generated on or before 24 March 2020 (whose validity has expired on or after the 20th day of March 2020) till 30th day of June.

(Read Notification No. 47/2020 – Central Tax dated 09 June 2020)

Companies are allowed to file form GSTR-3B and form GSTR-1 using EVC

GST Registered person who is also registered under the provisions of the Companies Act, 2013 are allowed to file form GSTR-3B and form GSTR-1 using Electronic Verification Code (EVC) as follows: -

1. FORM GSTR-3B: during the period from 21 April 2020 to 30 September 2020.

2. FORM GSTR-1: during the period from 27 May 2020 to 30 September 2020.

(Read Notification No. 48/2020 – Central Tax dated 19 June 2020)

CBIC amends GST Rates under GST Composition Scheme

CBIC notifies and amends Rules 7 of the CGST Rules 2017 with a new entry for Composition taxpayers who are providing services shall be taxed at a rate of 6% (CGST - 3% & SGST/UTGST - 3%). The following table is the amended composition rates under GST.

(Read Notification No. 50/2020 – Central Tax dated 24 June 2020)

Lowering interest rate for delayed filing or payment of GST in form GSTR 3B

Interest on GST forms an important component of the GST payment and is incurred by a business in case of delay in submitting or filing GST returns. Due to the COVID-19 situation in the country, the government reduced the interest rate for form GSTR-3B return filers. This interest relief has been provided based on the turnover in the previous financial year and class of taxpayers.

(Read Notification No. 51/2020 – Central Tax dated 24 June 2020)

CBIC provides one-time amnesty by lowering/waiving of late fees for non-furnishing of form GSTR-3B and conditional waiver of late fee for delay in furnishing returns in form GSTR-3B.

CBIC notify amnesty for taxpayers who haven’t filed GSTR-3B for tax periods between July 2017 and January 2020 as per the announcement made earlier at the 40th GST Council meeting. The CBIC notified that Nil return (i.e. GSTR-3B) for the above period could be filed without a late fee between 1st July 2020 and 30th September 2020. Further, for the rest of the taxpayers, it shall be restricted to a maximum of Rs 250 per return per month per act.

CBIC also provide relief by a conditional waiver of late fee for delay in furnishing returns in FORM GSTR-3B for tax periods of February 2020 to July 2020.

(Read Notification No. 52/2020 – Central Tax dated 24 June 2020)

Waiver of late fee for delay in filing form GSTR-1- March to June 2020

CBIC provides relief by waiving late fees for delay in furnishing outward statements in form GSTR-1 for tax periods for months from March 2020 to June 2020 for monthly filers and for quarters from January 2020 to June 2020 for quarterly filers vide Notification No. 53/2020-Central Tax Dated 24th June 2020.

(Read Notification No. 53/2020 – Central Tax dated 24 June 2020)

CBIC extends due date for furnishing form GSTR-3B for supply made in the month of August 2020 for taxpayers with annual turnover up to Rs. 5 crore

CBIC extends due date for furnishing form GSTR-3B for supply made in the month of August 2020 for taxpayers with annual turnover up to Rs. 5 crores. The due dates for filing of GSTR – 3B for the taxpayers whose turnover is less than Rs 5 crores in the previous financial year are.

(Read Notification No. 54/2020 – Central Tax dated 24 June 2020)

CBIC extends the due date of specific compliances to 31st August 2020

The time limit for completion or compliance of any action falling between the period from 20 March 2020 to 30 August 2020 shall be extended up to 31st August 2020.

(Read Notification No. 55/2020 – Central Tax dated 27 June 2020)

Extension of Refund order time limit

The proper officer should issue an order for a refund within 60 days of the date of receipt of the complete application. The time limit for issuance of orders falling between the period 20 March 2020 to 30 August 2020 has been extended later of the following:

• 15 Days after the receipt of reply; or

• 31 August 2020

(Read Notification No. 56/2020 – Central Tax dated 27 June 2020)

Prescribe maximum amount of penalty for Form GSTR-3B

CBIC has issued Notification No.57/2020 on 30.06.2020 to prescribe the maximum amount of penalty if GSTR-3B is filed up to 30.09.2020. The maximum amount of penalty has been restricted to 'Rs. 500/-' in case of other than NIL returns and 'zero' in case of NIL returns for the tax periods from Feb 2020 to July 2020.

The said relief is for both classes of taxpayers i.e. taxpayers having turnover up to Rs. 5 crores or more than 5 crores.

(Read Notification No. 57/2020 – Central Tax dated 30 June 2020)

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AUTHOR BIO

Name: CA Raghavendra N

Qualification: Chartered Accountant in Practice

Company: Raghavendra N & CO | Chartered Accountants

Location: Bengaluru