GST Notifications issued on 24th June, 2020 – At a Glance

Six CGST notifications have been issued on 24th June , 2020 viz Notification No. 49/2020- Central Tax to 54/2020- Central Tax. Notification No. 49/2020 has made effective certain Sections of Finance Act, 2020 regarding amendment to CGST Act, 2020. For detailed discussion in this regard please refer to our article “Amendments in CGST Act, 2017 by Finance Act, 2020, made effective from 30th June,2020“.

As regards other Notifications viz Notification No. 50/2020- Central Tax to 54/2020- Central Tax it may be noted that vide these notifications, amendment has been made in the CGST Rules, 2017 in regard to composition scheme and COVID-19 relief has been provided viz lowering of interest rate, lowering / waiving of late fees and extension in date of filing of GST returns.

For ready reference of our readers the summary of these five notifications is given below:

1. Notification No 54/2020- Central Tax dated 24.06.2020

Seeks to extend due date for furnishing FORM GSTR-3B for supply made in the month of August, 2020 for taxpayers with annual aggregate turnover up to Rs. 5 crore.

Taxpayers whose principal place of business is in the States of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands or Lakshadweep (hereinafter referred to a Group-A States) , can file FORM GSTR-3B for August, 2020 on or before the 01.10.2020.

Taxpayers whose principal place of business is in the States of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha, the Union territories of Jammu and Kashmir, Ladakh, Chandigarh or Delhi (hereinafter referred to a Group-B States), can file FORM GSTR-3B for August, 2020 on or before the 03.10.2020.

2. Notification No 53/2020- Central Tax dated 24.06.2020

Seeks to provide relief by waiver of late fee for delay in furnishing outward statement 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

Late fee payable shall stand waived for the registered persons who fail to furnish GSTR-1 by the due date, but furnishes it on or before the waiver due dates as given below:

Note: In case GSTR-1 is not filed by above dates, full late fee from the due date shall be payable.

3. Notification No 52/2020- Central Tax dated 24.06.2020

Seeks to provide one time amnesty by lowering/waiving of late fees for non furnishing of FORM GSTR-3B from July, 2017 to January, 2020 and also seeks to provide relief by conditional waiver of late fee for delay in furnishing returns in FORM GSTR-3B for tax periods of February, 2020 to July, 2020.

Reduced late fee of Rs 500 per GSTR-3B return for months July, 2017 to January,2020

Late fee payable for a tax period, shall stand waived which is in excess of an amount of Rs 250/- i.e. total Rs 500/- (CGST + SGST) for the registered person who failed to furnish GSTR-3B for the months of July, 2017 to January, 2020, by the due date but furnishes it from 01.07.2020 to 30.09.2020.

Zero late fee for NIL GSTR-3B return for months July, 2017 to January,2020

Where the total amount of tax payable in GSTR 3B is nil, the total amount of late fee payable for a tax period shall stand waived for the registered person who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to January, 2020, by the due date but furnishes it from 01.07.2020 to 30.09.2020.

Zero late fee if GSTR-3B for periods Feb, 2020 to July, 2020 filed by following waiver deadlines:

Note: In case GSTR-3B is not filed by above dates, full late fee from the due date shall be payable.

4. Notification No 51/2020- Central Tax dated 24.06.2020

Seeks to provide relief by lowering of interest rate for a prescribed time for tax periods from February, 2020 to July, 2020.

Note: In case GSTR-3B is not filed by above dates, full interest from the due date shall be payable.

5. Notification No 50/2020- Central Tax dated 24.06.2020

Seeks to make seventh amendment (2020) to CGST Rules (Rule 7 of the CGST Rules)

Vide this Notification, amendment has been made to Rule 7 of the CGST Rules, 2017 in regard to the composition scheme. The amendment in in regard to the incorporation of the rate of tax payable by a Registered persons not eligible under the composition levy under subsections (1) and (2), but who is eligible to opt and thus has opted to pay tax under sub-section (2A), of section 10 of the CGST Act, 2017. The sub-section (2A) basically covered suppliers who are engaged in supply of services.

The rate of tax for above suppliers now inserted in table to Rule 7 of the CGST Rules is 3% of the turnover of taxable supplies of goods and services in the State or Union territory. Considering similar insertion in GST Rules , the gross tax payable would be 6% of turnover of taxable supplies which is at par with that prescribed earlier vide Notification No 02/2019- Central Tax (Rate) dated 07.03.2019 wherein suppliers of service were provided with a sort of composition scheme subject to fulfillment of certain conditions.

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TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.