Notifications and Circulars issued to provide relief to taxpayers in view of spread of COVID – 19

Amendment in CGST Rules¹

• Cumulative application of the condition of availment of 110% of eligible credit as disclosed in GSTR-2A for the period February2020-August 2020. Earlier the input credit was availed in GSTR-3B as per the above condition on a monthly basis. Further after the amendment the condition for availment of ITC shall be applicable on a cumulative basis for the above prescribed tax period and shall required to be complied in GSTR-3B for the month of September 2020.
• Extending the time period for applying to composition scheme in form GST CMP-02 for FY 2020-21 till 30th June 2020and furnishing statement in form ITC-03 till 31st July 2020.

Extending the due date of compliance whichfalls during the period from 20.03.2020 to 29.06.2020 till 30.06.2020 and extending the validity of e-way bills.²

• The extension for time of compliance has been made applicable for filing of any appeal, reply or application or furnishing of any report, document, return, statement or such other record, ISD return, TDS return under GST, TCS returns under GST.

• There are certain exception, the same has been mentioned below:-

1. It shall not be applicable for taxpayers furnishing return in GSTR – 3B except for ISD return, TDS return under GST, TCS returns under GST
2. Tax invoice to be raised even during this period and time and value of supply provisions shall be in vogue
3. Application for normal/causal/non-resident registration need to be done even during lockdown
4. E-way bill to be made even during lockdown
5. Turnover of composition tax payer exceeds the threshold, due dates for furnishing details of outward supplies, levy of late fees, levy of interest on delayed payment of tax, power to arrest in case of offence specified under the section 132 of the Act, liability of partners of the firms to pay tax, penalty for certain offences as specified under section 122 of the CGST Act, detention, seizure and release of goods and conveyances in transit as specified under section 129 of the GST Act.

• Validity of E-way bill shall be deemed to have been extended till the 30th day of April, 2020 where e-way bill has been generated under rule 138 of the Central Goods and Services Tax Rules, 2017 and its period of validity expires during the period 20th day of March, 2020 to 15th day of April, 2020.

Extension of due date for various return are given as follows³

*Due dates for furnishing FORM GSTR-3B for themonths of February, March and April, 2020 has not beenextended. In case the returns in FORM GSTR-3B for the said months are not furnished on or before 24th day of June, 2020 then interest at 18% per annum shall be payable from the due date of return, till the date on which the return is filed.

Due date extended for furnishing FORM GST CMP-08 (Statement for payment of self assessed tax under composition scheme) for the quarter ending March, 2020 till 07.07.2020 and filing FORM GSTR-4 (Return for composition dealers) for FY 2020-21 till 15.07.2020.⁴

Clarification has been issued relation to the above notifications vide which various measures announced by the government for providing relief to the tax payers in view of COVID -19⁵

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BT Associates, India

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Twenty years of experience in tax practice. Specialist in structuring & planning and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.