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This circular clarifies the revised interest rates and conditional late fee waivers for registered persons filing FORM GSTR-3B and FORM GSTR-1 for specific tax periods. Taxpayers with an aggregate turnover above five crore rupees receive a reduced interest rate of nil for the first fifteen days and nine per cent per annum thereafter until June 24, 2020. Taxpayers with an aggregate turnover below five crore rupees receive nil interest and conditional late fee waivers up to specified dates, followed by nine per cent interest until September 30, 2020. Normal interest rates of eighteen per cent per annum apply after the specified periods for any further delay. Field formations must apply these provisions uniformly.
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Circular No.141/11/2020-GST
CBEC-20/06/04-2020 -GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing
New Delhi, dated the 24^th^ June, 2020
To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)
Madam/Sir,
Subject: Clarification in respect of various measures announced by the Government for providing relief to the taxpayers in view of spread of Novel Corona Virus (COVID-19) - Reg.
Circular No. 136/06/2020-GST, dated 03.04.2020 was issued by the Board on the subject issue clarifying various issues relating to the measures announced by the Government providing relief to the taxpayers. The GST Council, in its 40^th^ meeting held on 12.06.2020, recommended further relief to the taxpayers and accordingly, following notifications have been issued:
| S. No. | Notification No. | Remarks |
|---|---|---|
| 1. | Notification No.51/2020-Central Tax, dated 24.06.2020. | Seeks to provide relief to taxpayers by reducing the rate of interest from 18% per annum to 9% per annum for specified period. |
| 2. | Notification No.52/2020-Central Tax, dated 24.06.2020. | Seeks to provide relief to taxpayers by conditional waiver of late fee for delay in furnishing FORM GSTR-3B for specified period. |
| 3. | Notification No.53/2020-Central Tax, dated 24.06.2020. | Seeks to provide relief to taxpayers by conditional waiver of late fee for delay in furnishing FORM GSTR-1 for specified period. |
Circular No.141/11/2020-GST
of its powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) clarifies the issues detailed below:
Manner of calculation of interest for taxpayers having aggregate turnover above Rs. 5 Cr.
3.1 Vide notification No.31/2020- Central Tax, dated 03.04.2020, a conditional lower rate of interest was provided for various class of registered persons for the tax period of February, March and April, 2020. The same was clarified through Circular No. 136/06/2020-GST, dated 03.04.2020 (para 3, sl. No. 3, 4 and 5). It was clarified that in case the return for the said months are not furnished on or before the date mentioned in the notification No.31/2020- Central Tax, dated 03.04.2020, interest at 18% per annum shall be charged from the due date of return, till the date on which the return is filed.
3.2 The Government, vide notification no 51/2020- Central Tax, dated 24.06.2020 has removed the said condition. Accordingly, a lower rate of interest of NIL for first 15 days after the due date of filing return in FORM GSTR-3B and @ 9% thereafter till 24.06.2020 is notified. After the specified date, normal rate of interest i.e. 18% per annum shall be charged for any further period of delay in furnishing of the returns.
3.3 The calculation of interest in respect of this class of registered persons for delayed filing of return for the month of March, 2020 (due date of filing being 20.04.2020) is as illustrated in the Table below:
Table
| Sl. No. | Date of filing GSTR-3B | No. of days of delay | Interest |
|---|---|---|---|
| 1 | 02.05.2020 | 12 | Zero interest |
| 2 | 20.05.2020 | 30 | Zero interest for 15 days, thereafter interest rate @9% p.a. for 15 days |
| 3 | 20.06.2020 | 61 | Zero interest for 15 days, thereafter interest rate @9% p.a. for 46 days |
| 4 | 24.06.2020 | 65 | Zero interest for 15 days, thereafter interest rate @9% p.a. for 50 days |
| 5 | 30.06.2020 | 71 | Zero interest for 15 days, thereafter interest rate @9% p.a. for 50 days and interest rate @18% p.a. for 6 days |
Manner of calculation of interest for taxpayers having aggregate turnover below Rs. 5 Cr.
4.1 For the taxpayers having aggregate turnover below Rs. 5 Crore, notification No.31/2020- Central Tax, dated 03.04.2020 provided a conditional NIL rate of interest for the tax period of February, March and April, 2020. The Government, vide notification no 52/2020- Central Tax, dated 24.06.2020 provided the NIL rate of interest till specified dates in the said notification and 9% per annum thereafter till 30^th^ September, 2020. Similar relaxation of reduced rate of interest has been provided for the tax period of May, June and July 2020 also for the said class of registered persons having aggregate turnover below Rs. 5 Crore in the preceding financial year. The notification, thus, provides NIL rate of interest till specified
Circular No.141/11/2020-GST
dates and after the specified dates lower rate of 9% would apply till 30^th^ September 2020. After 30^th^ September, 2020, normal rate of interest i.e. 18% per annum shall be charged for any further period of delay in furnishing of the returns.
4.2 The calculation of interest in respect of this class of registered persons for delayed filing of return for the month of March, 2020 (for registered persons for whom the due date of filing was 22.04.2020) and June, 2020 (for registered persons for whom the due date of filing is 22.07.2020) is as illustrated in the Table below:
Table
| S. No. | Tax period | Applicable rate of interest | Date of filing GSTR-3B | No. of days of delay | Interest |
|---|---|---|---|---|---|
| 1 | March, 2020 | Nil till the 3^rd^ day of July, 2020, and 9 per cent thereafter till the 30^th^ day of September, 2020 | 22.06.2020 | 61 | Zero interest |
| 2 | March, 2020 | Nil till the 3^rd^ day of July, 2020, and 9 per cent thereafter till the 30^th^ day of September, 2020 | 22.09.2020 | 153 | Zero interest for 72 days, thereafter interest rate @9% p.a. for 81 days |
| 4 | March, 2020 | Nil till the 3^rd^ day of July, 2020, and 9 per cent thereafter till the 30^th^ day of September, 2020 | 22.10.2020 | 183 | Zero interest for 72 days, thereafter interest rate @9% p.a. for 89 days and interest rate @18% p.a. for 22 days |
| 4 | June, 2020 | Nil till the 23^rd^ day of September, 2020, and 9 per cent thereafter till the 30^th^ day of September, 2020 | 28.08.2020 | 37 | Zero interest |
| 5 | June, 2020 | Nil till the 23^rd^ day of September, 2020, and 9 per cent thereafter till the 30^th^ day of September, 2020 | 28.09.2020 | 68 | Zero interest for 63 days, thereafter interest rate @9% p.a. for 5 days |
| 6 | June, 2020 | Nil till the 23^rd^ day of September, 2020, and 9 per cent thereafter till the 30^th^ day of September, 2020 | 28.10.2020 | 98 | Zero interest for 63 days, thereafter interest rate @9% p.a. for 7 days and interest rate @18% p.a. for 28 days |
Manner of calculation of late fee
5.1 Vide notification No. 32/2020- Central Tax, dated 03.04.2020, a conditional waiver of late fee was provided for the tax period of February, March and April, 2020, if the return in FORM GSTR-3B was filed by the date specified in the said notification. The same was clarified through Circular No. 136/06/2020-GST, dated 03.04.2020.
