GST News and Updates - April 2020

Clarification on Refund process

CGST Circular 135/2020 clarifies the refund process and related issues.

  • Bunching of refund claims across Financial Years
  • Restriction on clubbing of tax periods across financial years according to the CGST Circular 125/2019 dated 18th Nov 2019 is now removed. Taxpayers can now file refunds by clubbing successive tax periods.
  • Refund of accumulated ITC on account of reduction in GST Rate
    • In cases where the tax rate on inward supply was higher at the time of purchase and later the tax rate was lowered leading to outward supply attracting a lower tax rate, the taxpayer accumulates ITC.
    • Refund of accumulated ITC would not be applicable in such cases where the same goods constitute inward and outward supply.
  • Guidelines for refunds of ITC
    • Refund of accumulated ITC shall be approved only if the invoices uploaded by the supplier in FORM GSTR 1 are reflected in the FORM GSTR 2A of the applicant.
  • Any refund of tax paid on supplies other than zero-rated supplies will now be admissible in the respective original mode of payment. Refunds to be paid in cash and credit shall be calculated and paid by issuing FORM GST RFD 06 for amount refundable in cash and FORM GST PMT 03 to re-credit the amount attributable to credit as ITC in the electronic credit ledger.
  • New Requirement to mention HSN/SAC
    • Taxpayers are now required to provide HSN/SAC code details of invoices appearing in their FORM GSTR 2A if the inward invoice issued by the supplier contains HSN/SAC code.
  • The circular also explains in detail about the procedure to file FORM RFD 1 for tax paid on supplies.

Relief on account of COVID-19

CGST Rule 36(4) applicability suspended temporarily

According to the CGST Notification 30/2020, for the period of Feb to Aug 2020, CGST Rule 36(4) (10% ITC rule) stands temporarily waived off. Taxpayers may avail ITC as per their Purchase Register during this period. In Sept 2020, taxpayers may apply additional 10% ITC calculation cumulatively for the period of Feb to Aug 2020.

E-Way bill validity

CGST Notification 35/2020 extends the validity of E-Way bills that expire between 20th March 2020 and 15th April 2020 to 30th April 2020.

Relaxation of due dates

  • CGST Notification 30/2020 amends the CGST rule so that any taxpayer opting for Composition Levy for FY 2020-21 may file FORM GST CMP 02 until 30th June 2020.
  • CGST Notification 34/2020 extends the due date to file FORM GST CMP 08 for the quarter ending 31st March 2020 to 7th July 2020. Taxpayers can now file their FORM GSTR 4 for the financial year ending 31st March 2020 on or before 15th July 2020.
  • Effective from 20th March 2020, CGST Notification 35/2020 extends the due dates of any compliance which falls during the period of 20th March 2020 to 29th June 2020 to 30th June 2020.
  • CGST Notification 36/2020 notifies that due dates to file GSTR 3B for taxpayers with over 5 crore aggregate turnover for May 2020 is extended to 27th June 2020.
  • CGST Notification 36/2020 also notifies that the due dates to file GSTR 3B for taxpayers with up to 5 crores for May 2020 is extended to 12th and 14th July 2020 based on their principle place of business.

Reduction in Interest and Late Fee on account of late filing

  • CGST Notification 33/2020, waives late fee on account of delayed filing of FORM GSTR 1 for the period of March 2020 to May 2020 and for the quarter ending 31st March 2020, if the taxpayer files their FORM GSTR 1 on or before 30th June 2020.
  • Taxpayers with over 5 crore aggregate turnover may file their FORM GSTR 3B for the period Feb to Apr 2020 on or before 24th June 2020 with reduced interest rates. Rate of Interest for a delay of 15 days is Nil. Interest at the 9% p.a will be charged for delay beyond 15 days.

Taxpayers with turnover above Rs 5 Crores in the preceding FY

Tax PeriodInterest not payable, if GSTR-3B is filed byPeriod for which interest is payable @9%, if GSTR-3B filed by 24th June 2020Period for which interest is payable @9%, if GSTR-3B filed after 24th June 2020
Feb 20204th Apr, 20205th Apr, 2020 - Date of filing21st Mar, 2020 - Date of filing
Mar 20205th May, 20206th May, 2020 - Date of filing21st Apr, 2020 - Date of filing
Apr 20204th June, 20204th June, 2020 - Date of filing21st May, 2020 - Date of filing

Taxpayers with turnover between Rs 1.5 to 5 Crores in the preceding FY

(a) Tax Period(b) Interest not payable, if GSTR-3B is filed by(c) Date from which interest is payable @18%, if not filed by dates in Column (b),for taxpayers falling in States/UT of Group 1(c) Date from which interest is payable @18%, if not filed by dates in Column (b),for taxpayers falling in States/UT of Group 2
Feb 202029th Jun, 202023rd Mar, 202025th Mar, 2020
Mar 202029th Jun, 202023rd Apr, 202025th Apr, 2020
Apr 202030th Jun, 202023rd May, 202025th May, 2020

Taxpayers with turnover below Rs 1.5 Crores in the preceding FY

(a) Tax Period(b) Interest not payable, if GSTR-3B is filed by(c) Date from which interest is payable @18%, if not filed by dates in Column (b),for taxpayers falling in States/UT of Group 1(c) Date from which interest is payable @18%, if not filed by dates in Column (b),for taxpayers falling in States/UT of Group 2
Feb 202030th Jun, 202023rd Mar, 202025th Mar, 2020
Mar 20203rd, Jul, 202023rd Apr, 202025th Apr, 2020
Apr 20206th Jul, 202023rd May, 202025th May, 2020