Clearmytax.in Editorial Team
- Introduction
The Central Government has recently vide Notification No. 38/2020 – Central Tax dated 05.05.2020 promulgated the Central Goods and Services Tax (Fifth Amendment) Rules, 2020 by which Central Goods and Services Tax Rules, 2017 have been amended in order to provide some relaxations in the mode of filing of the GST Returns. To be precise, twin amendments have been made in CGST Rules, out of which one has been made effective from 21.04.2020, whereas other amendment will be applicable from a date to be notified later.
2. Option given to Companies to file FORM GSTR 3B through EVC
Vide Notification No. 38/2020 – Central Tax dated 05.05.2020 with effect from the 21st April, 2020, in rule 26 in sub-rule (1) of CGST Rules, 2017, after the proviso, following proviso shall be inserted, namely: –
“Provided further that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 21st day of April, 2020 to the 30th day of June, 2020, also be allowed to furnish the return under section 39 in FORM GSTR3B verified through electronic verification code (EVC).”
2.1 Overview of Rule 26(1) of the CGST Rules,2017
It may noted here that Rule 26(1) of the CGST Rules, 2017 mandates method of verification of all applications , including reply to the notices, returns, appeals to be submitted electronically under digital signature certificate (DSC) or through e-signature or other notified mode of signature / verification. It may be noted here that vide Notification No. 6/2017 – Central Tax dated 19.06.2017 the CBIC had notified the following modes of verification, for the purpose of the said rule, namely:-
(i) Aadhaar based Electronic Verification Code (EVC);
(ii) Bank account based One Time Password (OTP).
Further it was vide said Notification that where the mode of authentication of any document is through any of the aforesaid modes, such verification shall be done within two days of furnishing the documents.
However as per first proviso to Rule 26(1), the Companies are required to furnish the documents or application through DSC only and thus other modes of verification like EVC, OTP etc are not available to them.
2.2 Relief provided to Companies
In order to provide relief to Companies during the COVID-19 pandemic as offices are closed during lock down and DSC kept in offices may not be accessible, second proviso has been inserted in Rule 26(1) whereby they can during the period 21.04.2020 to 30.06.2020 furnish return in FORM GSTR3B verified through EVC.
Basically while filing the GSTR 3B they may now choose the option ‘File GSTR-3B with EVC’ and thereafter enter the OTP as received on email and mobile number of the Authorized Signatory registered at the GST Portal and then click the VERIFY button. Immediately upon successful verification the window intimating that return has been filed successfully will pop up.
2.3 Option to file through EVC not available for filing GSTR-1
It may be noted here that option has been made available to Companies to file GSTR-3B only through EVC and thus GSTR-1 (return for outward supplies) needs to filed by them only through DSC. This seems to be amusing, but the reason for the same may be that GSTR-1 for the months March, 2020 to May, 2020 or quarter ending March, 2020 , as the case may be, can be filed till 30.06.2020 without any late fee as per Notification No. 33/2020-Central Tax dated 03.04.2020.
3. Furnishing of NIL return by sms facility
Vide Notification No. 38/2020 – Central Tax dated 05.05.2020 after rule 67 of the CGST Rules, 2017 with effect from a date to be notified later, the following rule shall be inserted, namely: –
“67A. Manner of furnishing of return by short messaging service facility.- Notwithstanding anything contained in this Chapter, for a registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B for a tax period, any reference to electronic furnishing shall include furnishing of the said return through a short messaging service using the registered mobile number and the said return shall be verified by a registered mobile number based One Time Password facility.
Explanation. – For the purpose of this rule, a Nil return shall mean a return under section 39 for a tax period that has nil or no entry in all the Tables in FORM GSTR-3B.”.
It may be noted here that this facility will be available to all registered persons.
3.1 Facility available only for filing of NIL return
Facility of filing return through sms facility available only in case of Nil return. As per Explanation to Rule 67A a Nil return shall mean a return for a tax period that has nil or no entry in all the Tables in FORM GSTR-3B.” Lets understand with help of some illustrations:
Illustration 1:
GST payable on outward supply: Rs 1 lakh
ITC availed and utilized: Rs 1 lakh
Net tax payable in cash: NIL
In this case though net tax payable in cash is NIL, however it will not be regarded as NIL return for purpose of Rule 67A as there is GST payable on outward supply and ITC has been availed / utilized, due to which all tables of GSTR-3B are not NIL / NA.
Illustration 2:
GST payable on outward supply: NIL
ITC availed: Rs 1 lakh
Net tax payable in cash: NIL
In this case though GST payable on outward supply is NIL and net tax payable in cash is NIL, however it will not be regarded as NIL return for purpose of Rule 67A as ITC has been availed due to which all tables of GSTR-3B are not NIL / NA.
3.2 Facility available only for filing of NIL GSTR-3B return and not GSTR-1 return
As per Rule 67A facility of furnish a Nil return through sms facility is available only in respect of return under section 39 i.e. FORM GSTR-3B meaning thereby the return for outward supplies under Section 37 viz GSTR-1 will be required to filed as per normal procedure and cannot be filed through sms , even though there is NIL data.
3.3 Effective date from which sms facility is available to be notified separately
It is important to note here that Rule 67A has not yet been made effective, rather it has been stated in Notification No. 38/2020 – Central Tax that same will be effective from a date to be notified later.
It seems that the system for filing of returns through sms is not in place and once same is ready, this rule shall be made effective by a separate notification.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
