Due date, Late fee and Interest of GSTR-3B and GSTR-1(Updated)

Whether the due date of GSTR-3B and GSTR-1 has been extended?

Yes, this is the biggest question at this time for all the taxpayers whether the due date of GSTR-3B and GSTR-1 has been extended or not?

The answer for the above question is "NO", the due date of GSTR-3B and GSTR -1 has not been extended but the rate of interest has been reduced.

To know full details please read below:

The pandemic situation in all over India has affected almost all types of businesses and all the taxpayers are in the hope to get some relief from the government be it in terms of compliance burden or in terms of any additional benefits that may help to get some relief during these times.

After considering the burden and challenges of taxpayer, government has issued the notification under which compliances burden of the taxpayer has been reduced.

The government has issued vide Notification No. 31/2020-Central tax, dated 03.04.2020 amended by Notification No. 51/2020 – Central Tax dated 24.06.2020 due date of GSTR-3B have not been extended but rate of interest on tax payable has been waived/reduced subject to the specified conditions.

For better understanding, the taxpayer can be categorised in to two parts and below i have described  the impact of these notifications on the same.

1. For a registered taxpayer whose aggregate turnover in the preceding FY is above Rs.5 Crore

The registered taxpayer whose aggregate turnover in the preceding FY is above Rs 5 crore, the rate of interest for late filing of GSTR-3B and GSTR-1 are as follows:

    

GSTR-3B for the month of February 2020, March 2020 & April 2020

Up to 15 days- NIL rate of interest on the tax payable for the month

After 15 days- 9% p.a thereafter till the date of filing the return for the month.

Condition: The above lower rate of interest shall be subject to the condition that due tax is paid by filing the return on or before 24th June, 2020. if failing to do so rate of interest shall be payable @ 18% p.a. from the due date of return, till the date on which return is filed.

For better understanding: lets take an example:

Let Mr. Smith file his return for the month of March 2020 ( due date is 20.04.2020) under followings scenarios:

Return filed	Delay	Interest Rate	Period of interest
Till 05.05.2020	15 days	NIL	N.A
20.05.2020	30 days	9% p.a.	first 15 days-NIL     next 15 days-9% p.a.
20.06.2020	61 days	9% p.a.	first 15 days-NIL     next 46 days-9% p.a
30.06.2020	71 days *	18% p.a.	18 % p.a. for 71 days

* Under this, condition for reduced rate of interest has been defeated. Therefore, 18 % p.a. rate of interest is applicable from the due date of return to date of filing of return i.e. 20.04.2020 to 30.06.2020 (71 days).

GSTR-3B for the month of May 2020

Up to 27th June, 2020 -NIL rate of interest on the tax payable for the month of May'2020 vide Notification No. 36/2020-Central Tax.

(if failing to do so rate of interest shall be payable @ 18% p.a. from the due date of return, till the date on which return is filed)

>Late fee for the period July'2017 to April'2020 vide Notification No. 52/2020 – Central Tax,

>Late fee for the period May'2020 to July'2020 vide Notification No.57/2020-Central tax. 

Period of Return	Condition-1	Condition-2
July'2017 to January'2020	Liability in Central tax Late fee is waived in excess of Rs.250/- No Liability in Central tax Late fee is fully waived	Waiver is available if the said return is filed between 01st July, 2020 to 30th September, 2020
Feb'2020 to April'2020	Not Applicable	Waiver is available if the said return is filed on or before 24th June,2020.
May’2020 to July’2020	Liability in Central tax Late fee is waived in excess of Rs.250/- No Liability in Central tax Late fee is fully waived	Waiver is available if the said return is filed till 30th September 2020.

2. For registered taxpayer whose aggregate turnover in the preceding FY is up to Rs.5 Crore.

GSTR-3B for the month of February 2020 to August 2020 

Vide Notification No. 51/2020 – Central Tax, the rate of interest has been notified.

State	Month	NIL Rate of Interest	Rate of Interest
Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala Tamil Nadu, Telangana or Andhra Pradesh or the Union territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep	February’2020	NIL till 30th June 2020	9% p.a. 01st July to 30th Sep 2020
	March’2020	NIL till 3rd  July 2020	9% p.a. 04th July to 30th Sep 2020
	April’2020	NIL till 6th  July 2020	9% p.a. 07th July to 30th Sep 2020
	May’2020	NIL till 12th Sep 2020	9% p.a. 13th Sep to 30th Sep 2020
	June’2020	NIL till 23rd Sep 2020	9% p.a. 24th Sep to 30th Sep 2020
	July’2020	NIL till 27th Sep 2020	9% p.a. 28th Sep to 30th Sep 2020
	August’2020	NIL till 1st Oct 2020	18% p.a. 2nd Oct to date of filing
State	Month	Rate of Interest	Rate of Interest
Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and Kashmir, Ladakh, Chandigarh and Delhi	February’2020	NIL till 30th June 2020	9% p.a. 01st July to 30th Sep 2020
	March’2020	NIL till 5th  July 2020	9% p.a. 06th July to 30th Sep 2020
	April’2020	NIL till 9th  July 2020	9% p.a. 10th July to 30th Sep 2020
	May’2020	NIL till 15th Sep 2020	9% p.a. 16th Sep to 30th Sep 2020
	June’2020	NIL till 25th Sep 2020	9% p.a. 26th Sep to 30th Sep 2020
	July’2020	NIL till 29th Sep 2020	9% p.a. 30th Sep to 30th Sep 2020
	August’2020*	NIL till 3rd Oct 2020*	18% p.a. 4th Oct to date of filing*

(if failing to do so rate of interest shall be payable @ 18% p.a. from the extended date till the date on which return is filed)

* Due date for the month of August has been extended vide Notification No. 54/2020 – Central Tax

>>Late fee for the period July'2017 to July'2020 Vide Notification No. 52/2020 – Central Tax amended vide Notification No.57/2020-Central tax. 

Period of Return	Condition-1	Condition-2
July'2017 to July'2020	Liability in Central tax Late fee is waived in excess of Rs.250/- No Liability in Central tax Late fee is fully waived	Waiver is available if the said return is filed till 30th September, 2020

GSTR-1 for the month of March 2020 to June 2020 and quarter ending 31st March 2020 and June 2020 for all taxpayer.

The Government vide Notification No. 53/2020-Central Tax dated 24th June 2020 has notified the due date of GSTR-1 for all taxpayer.

Monthly Return	Due Date of GSTR-1
March’2020	10th July, 2020
April’2020	24th July, 2020
May’2020	28th July, 2020
June’2020	05th Aug, 2020

Quarterly Filer	Due date of GSTR-1
Jan-Mar, 2020	17th July,2020
April-June, 2020	03rd Aug, 2020

No late fee for filing the details of outward supplies in the Form GSTR-1 for the above months if the same is furnished on or before the due dates specified, otherwise beyond these due dates late fee will be levied as per Section 47 of the CGST Act 2017.

Writer's Opinion: 

 As per my opinion, the taxpayer having turnover preceding the Financial year is above Rs 5 crore should avail the benefit of extended 15 days to deposit the tax for the month to overcome the working capital crunch during these days.

Also, for those taxpayers having turnover preceding the Financial year is less than Rs 5 crore, they may or may not deposit the tax i.e. the can utilise the money for other uses to overcome the financial crunch, if any.

Further, i advice for those taxpayers whose business are not badly affected can deposit the tax on time i.e on due date to remove the unnecessary compliance burden.

It may be noted that the above information is based on the latest circular issued by CBIC and for detailed information regarding the same please refer the followings;

Clarification:

https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular_Refund_136_6_2020.pdf 

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