1.Introduction
Due to the outbreak of Novel Corona Virus (COVID-19) across many countries of the world, including India and challenges faced by tax payers in meeting compliance requirements under various provisions of the CGST Act, the Government had inter-alia issued Notification No. 35/2020-CT dated 03-04-2020 issued under Section 168A of the CGST Act,2017 for extending due date of compliance which falls during the period from 20-03-2020 to 29-06-2020 to 30-06-2020. However said notification states that the above extended time limit shall not be applicable in respect of certain provisions of CGST Act.
2. Compliance relief granted by Notification No. 35/2020-CT dated 03-04-2020
The said Notification No. 35/2020-CT dated 03-04-2020 mandates as under:
(i) where, any time limit for completion or compliance of any action, by any authority or by any person, has been specified in, or prescribed or notified under the said Act, which falls during the period from the 20-03-2020 to the 29-06-2020, and where completion or compliance of such action has not been made within such time, then, the time limit for completion or compliance of such action, shall be extended upto the 30-06-2020, including for the purposes of–
(a) completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the Acts stated above; or
(b) 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 Acts stated above;
It has further been stated that such extension of time shall not be applicable for the compliances of the provisions of the said Act, as mentioned below –
(a) Chapter IV;
(b) sub-section (3) of section 10, sections 25, 27, 31, 37, 47, 50, 69, 90, 122, 129;
(c) section 39, except sub-section (3), (4) and (5);
(d) section 68, in so far as e-way bill is concerned; and
(e) rules made under the provisions specified at clause (a) to (d) above;
(ii) where an e-way bill has been generated under rule 138 of the CGST Rules, 2017 and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020, the validity period of such e-way bill shall be deemed to have been extended till the 30th day of April, 2020.
3. Amendment made to Notification No. 35/2020-CT vide Notification No. 55/2020- CT dated 27.06.2020
The Government vide Notification No. 55/2020- Central Tax dated 27.06.2020 has amended the Notification No. 35/2020- Central Tax dated 03.04.2020.
Notification No.55/2020- Central Tax, states that in Notification No. 35/2020-Central Tax, in the first paragraph, in clause(i):-
(i) for the words, figures and letters “29th day of June, 2020”, the words , figures and letters “30th day of August,2020” shall be substituted.
(ii) for the words, figures and letters “30th day of June, 2020”, the words , figures and letters “31st day of August,2020” shall be substituted.
Therefore the notification No. 55/2020-Central Tax has provided further relief to the tax payers by further extending the compliance window for compliances due for the period 20.03.2020 to 29.08.2020 to 31.08.2020.
3.1 Filing of tax returns
Furnishing of returns is covered under Section 39 of the CGST Act,2017 which is excluded from the purview of relief. However person required to furnish returns under sub-section (3), (4) and (5) of Section 39 are eligible for relief as these sub-sections have specifically been kept out from the exclusion. Accordingly the tax deductors, Input Service Distributor, and non resident taxable person which are covered by said three sub-sections, will get the further extended time relief in filing of their returns.
Further every electronic commerce operator who is required to collect tax at source under Section 52 is required to file return as per Section 52(4) of the CGST Act,2017. It is pertinent to mention here that Section 52 is not excluded from the benefit of the notification and thus further extended time benefit will also be available to the tax collectors (electronic commerce operators).
For ready reference the position of due dates as well as extended dates of filing of returns in respect of above categories of tax payers after amendment in the Notification is summed up in the table below:-
| Section of CGST Act | Furnishing of return by | FORM | Due date | Extended date |
| 39(3) | Tax deductors | GSTR-7 | 10th of next month | 30-06-2020* (for returns for March to July,2020) |
| 39(4) | Input Service Distributor | GSTR-6 | 13th of next month | 30-06-2020* (for returns for March to July,2020) |
| 39(5) | Non-resident taxable person | GSTR-5 | 20th of next month or 7 days after last day of period of registration, whichever is earlier | 30-06-2020 (In case the due date falls between 20-03-2020 to 30-08-2020) |
| 52(4) | Electronic Commerce Operators (Tax Collectors) | GSTR-8 | 10th of next month | 30-06-2020* (for returns for March to July,2020) |
*The due dates for the returns for the month of March to July, 2020 falls between 20-03-2020 to 30-08-2020 and accordingly as per Notification No 35/2020-CT ( as amended) the due date is extended to 31-08-2020.
3.2 Payment of Tax
As deliberated above, the return filing dates for tax deductors and tax collectors have been extended. Now the question arises as to whether the due date of making payment has also extended consonantly or not. Let us discuss the same as under:-
a. Tax Deductors
The tax deductors can file their GSTR-7 (along with payment of TDS) for months March, 2020 to , 2020 on or before the 31st August, 2020 without any levy of interest as interest under Section 50(1) is levied when payment of tax is made after the due date which in instant case has been extended to 31st August,2020.
b. Electronic Commerce Operator (Tax Collectors)
As per Section 52(3) of the CGST Act, 2017 the amount of tax collected at source is required to paid to the Government by the operator by 10th of next month. As Section 52(3) is not excluded from the purview of Notification No. 35/2020-CT, the due date of making of payment of TCS for the month of March to July, 2020 is extended to 31-08-2020 as due date of payment of TCS for said months is falling between 20-03-2020 to 30-08-2020.
3.3 Other Compliances
In regard to other compliance’s, in line with the above amendment and also considering the text of Circular No. 136/06/2020-GST dated 03-04-2020, Vide notification No. 35/2020- Central Tax, dated 03.04.2020, except for few provisions covered in exclusion clause, any time limit for completion or compliance of any action which falls during the period from the 20th day of March, 2020 to the 30th day of August, 2020, and where completion or compliance of such action has not been made within such time, has been extended 31st day of August, 2020.
3.3-1 Exclusions
Needless to mention that following provisions of the CGST Act, 2017 which have been kept out of the Notification No. 35/2020- CT, meaning thereby benefit of the extended timeline would not be available thereon.
For ready reference of the readers the exclusions are tabulated below:
| Chapter / Section of CGST Act | Description | Remarks |
| Chapter IV: | Time and value of Supply | Time of supply would be computed in the normal manner as per provisions contained in Section 12, 13 and 14 of the CGST Act and no extension in same has been granted. Also value of supply will be determined as per Section 15 without any dispensation. |
| Sub-section (3) of section 10 | Exit from composition scheme upon aggregate turnover exceeding the prescribed limit | – |
| Section 25 | Procedure of registration | – |
| Section 27 | Registration procedure of casual taxable person and non resident taxable person | – |
| Section 31 | Tax invoice | – |
| Section 37 | Furnishing of details of outward supplies. | Separate Notification No. 27/2020-CT and 28-2020-CT in regard to due date of filing of GSTR-1 has been issued |
| Section 47 | Levy of late fee | Separate notification No 32/2020-CT and 33/2020-CT in this regard has been issued for GSTR-1 and GSTR 3B. |
| Section 50 | Interest on delayed payment of tax. | Notification No. 31/2020-CT issued in regard to lowering of rate of intt. In regard to filing of GSTR-3B. |
| Section 69 | Power to Arrest | – |
| Section 90 | Liability of partners of firm to pay tax | – |
| Section 122 | Penalty for certain offences | – |
| Section 129 | Detention and release of goods and conveyances in transit | – |
| Section 39 except sub-section (3), (4) and (5); | Furnishing of returns | Returns to be filed by tax deductors, ISD and non resident taxable person kept out of exclusion. |
| Section 68 in so far as e-way bill is concerned. | Inspection of goods in movement | Relaxation in regard to validity of e-way separately provided in the Notification No 35/2020-CT. ( Extended later separately). |
Further as per the Notification No. 35/2020-CT, no relaxation has also been provided in regard to the rules made under the above tabulated provisions of CGST Act.
4.0 Concluding Remarks
To conclude, from above deliberations it is aptly clear that still we are grappling with COVID-19 pandemic the compliance window earlier extended upto 30.06.2020 has further been extended to 31.08.2020. This a welcome measure and will give a further breathing space to the tax payers in such critical times. However we should remember that the extension of time granted is not a blanket one as certain provisions of the CGST Act, as discussed in the article have been left out.
For ready reference of the readers the Notification No. 55/2020- Central Tax dated 27.06.2020 is given below:
***
A BIG THANKS to you for visiting our site and reading this article. Kindly provide your feedback on the above article in comment section below. Also please intimate about other GST issues on which you would require our team to pen down articles.
Doubts on GST may be lodged on ‘Ask GST query tab‘ under ‘Your GST queries’ tab on home page. National level GST experts will provide their reply on the matter raised at the earliest and same can be seen under ‘GST query resolved’ tab under ‘Your GST queries’ tab.
You can also subscribe to our free newsletter to always be updated on GST Law by filling the subscription form at home page.
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.
