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The Central Government notifies a special procedure for registered persons who furnish a return for every quarter. These persons may pay tax for the first month or second month or both months of a quarter by depositing an amount into the electronic cash ledger. The deposit equals thirty five per cent of the tax liability paid from the electronic cash ledger in the preceding quarter for quarterly filers. Alternatively, the deposit equals the tax liability paid from the electronic cash ledger in the last month of the preceding quarter for monthly filers. Deposits are not required when existing ledger balances cover the tax liability or when tax liability is nil. Registered persons must furnish the return for a complete preceding tax period to use this procedure. This notification takes effect on the first day of January 2021.
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[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 85/2020 – Central Tax
New Delhi, the 10th November, 2020
G.S.R………(E). — In exercise of the powers conferred by section 148 read with sub-section (7) of section 39 of the Central Goods and Services Tax Act, 2017 (12 of 2017), (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the registered persons, notified under proviso to sub-section (1) of section 39 of the said Act, who have opted to furnish a return for every quarter or part thereof, as the class of persons who may, in first month or second month or both months of the quarter, follow the special procedure such that the said persons may pay the tax due under proviso to sub-section (7) of section 39 of the said Act, by way of making a deposit of an amount in the electronic cash ledger equivalent to, -
(i) thirty five per cent. of the tax liability paid by debiting the electronic cash ledger in the return for the preceding quarter where the return is furnished quarterly; or
(ii) the tax liability paid by debiting the electronic cash ledger in the return for the last month of the immediately preceding quarter where the return is furnished monthly:
Provided that no such amount may be required to be deposited-
(a) for the first month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the tax liability for the said month or where there is nil tax liability ;
(b) for the second month of the quarter, where the balance in the electronic cash ledger or electronic credit ledger is adequate for the cumulative tax liability for the first and the second month of the quarter or where there is nil tax liability:
Provided further that registered person shall not be eligible for the said special procedure unless he has furnished the return for a complete tax period preceding such month.
Explanation- For the purpose of this notification, the expression “a complete tax period” means a tax period in which the person is registered from the first day of the tax period till the last day of the tax period.
[F. No. CBEC 20/06/04/2020-GST]
(Pramod Kumar) Director, Government of India
